“In 2030, we want to be a $200 million business”

TABINDA HUSSAIN: Whatis the history behindMatco Foods?
FARYAL MURTAZA: Aftermigrating to Pakistan, mygrandfather established a ricemill in Larkana, which was takenover following nationalisation.This, however, did not deter mygrandfather’s resolve and in1964 he founded Matco Foods,which also dealt in rice – mygrandfather believed thatPakistan was the world’sbasmati bowl. At first, MatcoFoods concentrated onprocessing rice and supplying itto export businesses. Then in1999 we introduced brandedrice and called it Falak – aftermy younger sister. Matco wasthe first company to be listed onthe Pakistani Stock Exchangeand we also have considerableshareholding from theInternational FinanceCorporation (IFC).

TH: Are consumersincreasingly likely to opt forbranded rice?
FM: After introducing Falak, weinitially concentrated onexports and it was not until2002 that we started to focuson the local market becausewe believed that Pakistaniconsumers should have accessto an export-quality brand.However, although consumerbuying patterns have changed,the tussle between the khulachawal and ‘branded’ ricecontinues. This said, accordingto a recent survey weconducted with Oula, we arethe market leader, with a 40%share of the branded ricemarket. We ensure that thequality of our rice does notvary whether bought inPakistan or overseas. Falak isour flagship brand and it isdistributed worldwide to over50 countries.

TH: How do you maintain thequality and consistency?
FM: We try to control the qualityfrom the stage when the rice isgrown at the farm. We digitallymap the soil in our farms inPunjab and Sindh for water –rice is a very sensitive plant. In2012, we began our KissanDost sustainability programmenear our processing plant inSadhoke and so far we haveeducated 600 farmers onoptimal times for sowing andharvesting. We ensure completetraceability of the productthrough close monitoring of thepaddy at all stages of its growth.The programme has enabled usto improve the traceability andsustainability of our products atthe grassroots levels and wehave received the USDA (UnitedStates Department ofAgriculture) & EU (EuropeanUnion) Organic Certification.

TH: Who are your competitorsand how do you differentiateyourself from them?
FM: We are our own fiercestcompetitors. We are driven byour love and passion for food andthe desire to excel.

TH: Has Matco Foods’ portfolioevolved?
FM: Since 2013, we have beeninto food mixes, spices andseasonings as well and weestablished the Falak Food divisionfor this purpose. We did sobecause we saw the trend amongconsumers to branch out fromtraditional foods and explore othercuisines. Our range includes periperi seasoning and masalas forfries, steak and chaat. We alsooffer herbs like oregano and foodmixes such as Nashville hotchicken seasoning, crispy friedchicken and Korean hot dog mix.Every product is carefully curated,keeping in mind what ourconsumers want. The entireconsumer dynamic is changing andI find this very exciting. Pakistan isblessed with agricultural diversityand given that corn is one of itsmain grains, we have also venturedinto corn-related products, such ascorn starch and we are extractingrice glucose from the husk anddeveloping rice bran oil.

TH: Are your sales primarily B2Bor B2C-centric?
FM: We concentrate on both. TheFalak Food division offers productsdirectly to end consumers, includingsmall and medium-sizedbusinesses – home foodbusinesses and catering services,as well as restaurants and hotels.The products emanating from ourrice glucose and corn starchdivisions are primarily B2B, as theyare aimed at the confectioneryindustry. We have also establisheda new DHM (dextrosemonohydrate) factory as a B2Bventure. DHM is a fine powder usedby the pharmaceutical andconfectionery industries.

TH: Do you have plans toestablish dedicated retail stores?
FM: We have several fair-priceoutlets outside our factories inKarachi and Lahore and dedicatedfair-price shops in those cities. Weare looking at establishing FalakFulfilment Centres in NorthAmerica so that any outlet store orsmall store can order directly fromus. We also have an e-store whichis very popular due to theconvenience it offers.

TH: How do you market andadvertise your products?
FM: Our golden rule when itcomes to marketing is to follow the customer. In order to servethe diverse age range of ourconsumers – they includeyoung women interested innon-traditional foods like friedchicken, burgers and steaksand consumers in their fortieswho want to cook desi food –we have moved towards socialmedia. In this respect, weunderstand that our 40-yearold customers will probably beon Facebook, while our20-year-old customers aremore likely to be on TikTok orInstagram. We participate inevents such as Karachi Eatwhich allow us to directlyinteract with our consumers.Similarly, we have a presenceat events in North America thattake place during Ramzan orEid. We advertise frequentlyand there is a new campaign inthe pipeline which is executedby Azad Films.

TH: Is Matco Foods committedto sustainability?
FM: As a member of theSustainable Rice Platform(SRP), we ensure supply chaintraceability, prioritisingenvironmental protection andensuring that farmers receivetheir fair share. Matco is at theforefront of empoweringwomen and works closely withwomen farmers in partnershipwith Oxfam.

TH: What are Matco Food’snotable CSR initiatives?
FM: We strongly feel that thereare two avenues in which wecan have an influence and makean impact – healthcare andeducation. In memory of TariqGhori, one of our directors, weestablished a new schoolcampus in collaboration with theCitizen’s Foundation. Wesupport healthcare initiativesthrough the Ghori TrustFoundation. In honour of ourfounding father, Syed SarfarazAli Ghori and his wife, wefunded a paediatric tuberculosiswing at Indus Hospital.

TH: What are your growthplans in the future?
FM: Falak, the brand name,says it all: the sky is our limit.By 2030, we want to be a $200million business throughacquisitions and sustainablegrowth. We hope to expand theFalak Food Division by offeringmore products that will enrichthe lives of our customers,enable them to pursue theirfoodie interests and exploretheir culinary passions.Consumers are increasinglygravitating towards frozen foodsand we are looking at exploringthis well. We will also belaunching meal kits to provideaffordable and healthy optionsthat cater to diverse palates.

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