Gul Ahmed to establish four subsidiaries to diversify textile business

Gul Ahmed Textile Mills Limited (GATM), one of the country’s largest textile mills, announced plans to establish four wholly-owned subsidiaries to undertake specialized textile operations under sustainable practices.

The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

“The company’s management is desirous to explore avenues to expand and improve the company’s business and operations in an evolving environment, including conducting textiles operations under sustainable practices as per the requirements of customers, and transitioning operations towards renewable energy sources to potentially replace fossil fuel-based power dependency,” read the company’s circular disclosed to the PSX.

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GATM said that the management is of the view that such businesses and initiatives be commenced under four separate wholly owned subsidiaries of the company.

“Each subsidiary will operate as a private limited company under the Companies Act 2017, with Gul Ahmed Textile Mills Limited holding 100% shares,” read the notice.

GATM aims to complete all necessary formalities for incorporation while ensuring compliance with SECP regulations and filings under the Companies Act 2017.

Gul Ahmed group has been operating as a textile trader since the 1900s. However, the group commenced its manufacturing operations as Gul Ahmed Textile Mills (GATM) in 1953. It turned into a public limited entity in 1955.

GATM is a composite textile mill engaged in the manufacturing and sale of textile products. Besides having a strong presence in the manufacturing sector, the company has a foothold in the retail business too.

The retail business started in Karachi and stretched to more than 40 stores across the country offering products ranging from fashion and clothing to home accessories.