Karachi, Pakistan – Shaffi Chemical Industries Limited (SHCI) has announced a major shift in its business strategy, transitioning from chemical manufacturing to furniture production. The decision was disclosed in a notice to the Pakistan Stock Exchange (PSX) on Friday, signaling a strategic pivot aimed at revitalizing the company’s operations.
Strategic Shift to Furniture Manufacturing
The Board of Directors (BoD) reviewed and approved the company’s new future strategy, focusing on key growth initiatives. As part of this transition, SHCI will utilize its existing factory premises to manufacture furniture products.
The company emphasized its compliance with the Companies Act, 2017, which permits businesses to engage in any lawful activity as long as it aligns with their Memorandum of Association (MoA) and company name. To facilitate this transition, SHCI will adopt a new MoA, officially designating furniture manufacturing as its primary line of business.
Proposed Name Change & Capital Expansion
Alongside the business transition, the BoD has also proposed renaming the company from Shaffi Chemical Industries Limited to Shaffi Industrial Enterprises Limited. This change is subject to approval from the Securities and Exchange Commission of Pakistan (SECP).
In a bid to support its new business direction, the company has decided to increase its authorized capital from Rs120 million to Rs400 million. This move is intended to enable a rights issue, allowing for fundraising and equity expansion in the near future.
Company Background
Established as a Public Limited Company on September 27, 1994, SHCI has been primarily engaged in the manufacturing of Di-Octyle Ortho Phthalates (DOP) Chemicals. The company currently produces Lith and Diltex binders but is now set to exit the chemical sector in favor of the furniture industry.
With this strategic shift, SHCI aims to diversify its business portfolio and explore new growth opportunities in the furniture manufacturing sector.
