TABINDA HUSSAIN: What is the history behind Matco Foods?
FARYAL MURTAZA: After migrating to Pakistan, my grandfather established a rice mill in Larkana, which was taken over following nationalisation. This, however, did not deter my grandfather’s resolve and in 1964 he founded Matco Foods, which also dealt in rice – my grandfather believed that Pakistan was the world’s basmati bowl. At first, Matco Foods concentrated on processing rice and supplying it to export businesses. Then in 1999 we introduced branded rice and called it Falak – after my younger sister. Matco was the first company to be listed on the Pakistani Stock Exchange and we also have considerable shareholding from the International Finance Corporation (IFC).

TH: Are consumers increasingly likely to opt for branded rice?
FM: After introducing Falak, we initially concentrated on exports and it was not until 2002 that we started to focus on the local market because we believed that Pakistani consumers should have access to an export-quality brand. However, although consumer buying patterns have changed, the tussle between the khula chawal and ‘branded’ rice continues. This said, according to a recent survey we conducted with Oula, we are the market leader, with a 40% share of the branded rice market. We ensure that the quality of our rice does not vary whether bought in Pakistan or overseas. Falak is our flagship brand and it is distributed worldwide to over 50 countries.

TH: How do you maintain the quality and consistency?
FM: We try to control the quality from the stage when the rice is grown at the farm. We digitally map the soil in our farms in Punjab and Sindh for water – rice is a very sensitive plant. In 2012, we began our Kissan Dost sustainability programme near our processing plant in Sadhoke and so far we have educated 600 farmers on optimal times for sowing and harvesting. We ensure complete traceability of the product through close monitoring of the paddy at all stages of its growth. The programme has enabled us to improve the traceability and sustainability of our products at the grassroots levels and we have received the USDA (United States Department of Agriculture) & EU (European Union) Organic Certification.

TH: Who are your competitors and how do you differentiate yourself from them?
FM: We are our own fiercest competitors. We are driven by our love and passion for food and the desire to excel.

TH: Has Matco Foods’ portfolio evolved?
FM: Since 2013, we have been into food mixes, spices and seasonings as well and we established the Falak Food division for this purpose. We did so because we saw the trend among consumers to branch out from traditional foods and explore other cuisines. Our range includes peri peri seasoning and masalas for fries, steak and chaat. We also offer herbs like oregano and food mixes such as Nashville hot chicken seasoning, crispy fried chicken and Korean hot dog mix. Every product is carefully curated, keeping in mind what our consumers want. The entire consumer dynamic is changing and I find this very exciting. Pakistan is blessed with agricultural diversity and given that corn is one of its main grains, we have also ventured into corn-related products, such as corn starch and we are extracting rice glucose from the husk and developing rice bran oil.

TH: Are your sales primarily B2B or B2C-centric?
FM: We concentrate on both. The Falak Food division offers products directly to end consumers, including small and medium-sized businesses – home food businesses and catering services, as well as restaurants and hotels. The products emanating from our rice glucose and corn starch divisions are primarily B2B, as they are aimed at the confectionery industry. We have also established a new DHM (dextrose monohydrate) factory as a B2B venture. DHM is a fine powder used by the pharmaceutical and confectionery industries.

TH: Do you have plans to establish dedicated retail stores?
FM: We have several fair-price outlets outside our factories in Karachi and Lahore and dedicated fair-price shops in those cities. We are looking at establishing Falak Fulfilment Centres in North America so that any outlet store or small store can order directly from us. We also have an e-store which is very popular due to the convenience it offers.

TH: How do you market and advertise your products?
FM: Our golden rule when it comes to marketing is to follow the customer. In order to serve the diverse age range of our consumers – they include young women interested in non-traditional foods like fried chicken, burgers and steaks and consumers in their forties who want to cook desi food – we have moved towards social media. In this respect, we understand that our 40-year old customers will probably be on Facebook, while our 20-year-old customers are more likely to be on TikTok or Instagram. We participate in events such as Karachi Eat which allow us to directly interact with our consumers. Similarly, we have a presence at events in North America that take place during Ramzan or Eid. We advertise frequently and there is a new campaign in the pipeline which is executed by Azad Films.

TH: Is Matco Foods committed to sustainability?
FM: As a member of the Sustainable Rice Platform (SRP), we ensure supply chain traceability, prioritising environmental protection and ensuring that farmers receive their fair share. Matco is at the forefront of empowering women and works closely with women farmers in partnership with Oxfam.

TH: What are Matco Food’s notable CSR initiatives?
FM: We strongly feel that there are two avenues in which we can have an influence and make an impact – healthcare and education. In memory of Tariq Ghori, one of our directors, we established a new school campus in collaboration with the Citizen’s Foundation. We support healthcare initiatives through the Ghori Trust Foundation. In honour of our founding father, Syed Sarfaraz Ali Ghori and his wife, we funded a paediatric tuberculosis wing at Indus Hospital.

TH: What are your growth plans in the future?
FM: Falak, the brand name, says it all: the sky is our limit. By 2030, we want to be a $200 million business through acquisitions and sustainable growth. We hope to expand the Falak Food Division by offering more products that will enrich the lives of our customers, enable them to pursue their foodie interests and explore their culinary passions. Consumers are increasingly gravitating towards frozen foods and we are looking at exploring this well. We will also be launching meal kits to provide affordable and healthy options that cater to diverse palates.

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