SE plans IPO, sees USD1bn fruit-and-veg export potential

KARACHI: SE Fruits & Vegetables Limited, an established exporter, is preparing for its proposed Initial Public Offering (IPO) at the Pakistan Stock Exchange (PSX). The company sees potential for Pakistan to build a USD 1 billion annual fruit, vegetable and value-added export industry within the next two to three years.

Rai Omar, Chief Financial Officer of SE Fruits & Vegetables, said improving export conversion, reducing post-harvest losses and strengthening processing, cold-chain and market-access infrastructure could help unlock the sector’s export potential.

According to Pakistan Bureau of Statistics (PBS) data, Pakistan exported approximately USD 471 million of fresh fruits and vegetables in FY2026, including around USD 308 million of fruits and USD 163 million of vegetables.

Rai said the USD 1 billion target remained achievable given Pakistan’s agricultural production base and the size of the international market.

The target is also below a broader industry roadmap announced in December 2025 by the Pakistan Fruit and Vegetable Exporters and Merchants Association (PFVA), together with the Trade Development Authority of Pakistan (TDAP), which envisaged increasing fruit, vegetable and value-added exports from around USD 700 million to USD 2 billion within three years.

“The agricultural base is already here. The opportunity is to export more of what Pakistan produces, reduce losses and realise greater value from every tonne harvested,” Rai said.

Pakistan’s opportunity is particularly significant in major horticulture categories such as kinnow, mangoes and potatoes.

The combined global market for oranges, mangoes and potatoes is estimated at approximately USD 236 billion. The global orange market alone was valued at around USD 48.4 billion in 2024, while the mango market was estimated at approximately USD 67.9 billion and the potato market at around USD 120 billion.

At USD 1 billion, Pakistan would still account for less than 0.5 percent of this combined global opportunity.

Domestic production volumes are already substantial. Pakistan produces approximately 2.1 million tonnes of kinnow and more than 1.8 million tonnes of mangoes annually, while potato production increased to approximately 12 million tonnes in FY2026.

However, only a relatively small portion of the country’s production ultimately reaches international markets, while post-harvest losses across the wider fruit and vegetable supply chain are estimated at around 30 percent to 40 percent.

According to Rai, this makes export conversion rather than agricultural production itself one of the key challenges.

“The opportunity lies in improving sorting and grading, packaging, cold-chain infrastructure, phytosanitary compliance and connectivity with international buyers,” he said. “Better working-capital availability is equally important because exporters must be able to procure quality produce and offer competitive credit terms to established overseas customers.”

International horticulture exporters including South Africa, Egypt, Morocco and Türkiye have demonstrated that significantly higher proportions of agricultural production can be converted into exports when supporting infrastructure and market linkages are in place.

SE also sees substantial headroom within its existing international markets.

The company has assessed demand across 23 countries where it has either exported or identified opportunities for mangoes, kinnow and potatoes. These markets represent estimated annual demand of approximately 5.89 million tonnes, comprising around 548,000 tonnes of mangoes, 2.37 million tonnes of kinnow and 2.97 million tonnes of potatoes.

SE exported approximately 5,115 tonnes in FY2026, including 3,600 tonnes of kinnow and 1,515 tonnes of mangoes. The company is targeting exports of approximately 30,327 tonnes in FY2027 and 35,953 tonnes in FY2028.

Even after the projected increase, SE would remain a relatively small participant in Pakistan’s overall fruit and vegetable export pool, indicating considerable room for further expansion.

The company has historically served around 50 international customers, although approximately 15 were serviced recently. This leaves a large part of its historical customer network, particularly in Central Asia and the Far East, available for potential reactivation.

Existing processing capacity may also support expansion. SE’s kinnow processing platform was utilised at approximately 32 percent, with utilisation expected to reach around 59 percent by FY2027 and 61 percent by 2028 following planned growth.

The company is also evaluating additional export markets, new product categories and earlier-season varieties to extend its operating cycle.

Central Asia is considered an attractive corridor for kinnow exports, particularly during winter, when lower ambient temperatures can support product shelf life and potentially improve transportation economics on suitable routes.

“Pakistan does not need to dominate international trade to build a USD 1 billion fruit, vegetable and value-added export industry,” Rai said. “The production is available, international demand exists and there is considerable scope to convert a much larger share of Pakistan’s agricultural output into exports.”

Copyright Business Recorder, 2026