Pakistan textile giant plans major expansion in renewable energy, yarn, and dairy

Nishat Mills Limited (NML), the flagship company of Nishat Group, is pursuing a multi-pronged expansion strategy with plans to add 4 megawatts (MW) of solar capacity, expand yarn production and invest up to Rs5 billion in Nishat Sutas Dairy Limited.

The development came to light during a corporate briefing session held on Thursday, which was attended by Topline Securities.

As per the brokerage house report, NML’s management shared future plans, including further investment in renewable energy.

With 38MW of solar already installed, plans are underway for an additional 4MW installation, alongside proposed investments in a 45TP steam boiler and battery-storage infrastructure.

“The company also plans to expand its open-end yarn capacity by adding 3,000 rotors, taking the total to 13,000,” read the report.

Construction is also in progress for a workwear garments unit, commissioned in FY25, with a pilot project set up to utilise its potential.

In addition to textile and energy initiatives, NML is also investing in Nishat Sutas Dairy Limited. NML has approved investment of up to Rs5 billion, out of which Rs3.9 billion has been invested as of June 2025, shared Topline.

During the corporate briefing session, NML’s management mentioned that margins are getting competitive in Europe as countries with higher tariffs from the USA, i.e. Bangladesh, are now shifting to Europe.

The company expects the ongoing fiscal year to “be slightly challenging”. However, it has diversified its product portfolio into denim and technical textiles, “which should help support margins and reduce risk,” read the report.

“NML also plans to further expand its market presence, entering additional European and non-traditional textile markets,” it added.

Nishat Mills Limited was established in 1951. Being one of the largest vertically integrated companies in Pakistan, the company is engaged in spinning, weaving, printing, dyeing, bleaching, and stitching and the apparel business.

NML deals in yarn, linen, and other products made from raw cotton and synthetic fibre. The company is also in the business of generating and supplying electricity.