Islamabad: The Competition Commission of Pakistan (CCP) has sanctioned a corporate restructuring plan for the Nishat Chunian Group, involving key subsidiaries and its CEO, aimed at consolidating and streamlining operations. This approval pertains to the internal alignment of M/s. Nishat Chunian Limited (NCL), M/s. Nishat Chunian Power Limited (NCPL), M/s. Nishat Mills Limited (NML), and the group’s CEO, Mr. Shahzad Saleem, under a Scheme of Arrangement designed to enhance operational efficiencies across the board.
According to Competition Commission of Pakistan, the restructuring plan has undergone a comprehensive Phase 1 competition assessment, detailing the primary business functions of each entity involved. Nishat Chunian Limited, which is publicly listed, is primarily engaged in textile operations that encompass a range of activities from spinning and weaving to dyeing and fabric processing, alongside electricity generation and sales. Nishat Chunian Power Limited specializes as an Independent Power Producer (IPP), focusing on the construction, ownership, and operation of fuel-fired power stations with a Power Purchase Agreement in place with the Central Power Purchasing Agency (Guarantee) Ltd (CPPA-G). Nishat Mills Limited, another key entity in the group and also publicly listed, operates broadly in textile manufacturing, including the production of various fabrics and also participates in power generation.
The CCP’s review identified the relevant product markets impacted by this restructuring as including ‘spinning, weaving, home textile, and thermal power generation- CPPA-G’. It was noted that the restructuring would result in a slight increase in shareholding for Mr. Shahzad in NCL and a marginal rise in NML’s shareholding in NCPL. Despite these shifts, the CCP concluded that the restructuring would not lead to any undue market dominance or competitive disadvantages.
The approval marks a significant step for Nishat Chunian Group in optimizing its corporate structure and aligning its operations more closely to achieve greater efficiency and market responsiveness.