Frontier Ceramics Drops Billion Rupee Expansion Plan Amid Market Saturation

Frontier Ceramics Limited has called off its multibillion-rupee expansion project, citing a saturated ceramics market and weak investment returns. In a notice to the Pakistan Stock Exchange (PSX), the company said that in a meeting held on October 7, 2025, the Board of Directors reviewed future expansion plans and concluded that new projects would not yield “adequate returns for shareholders.” As part of this decision, the Board resolved to discontinue the planned land acquisition for a new business unit and withdraw the Land Sale Agreement dated January 8, 2021, executed with the company’s CEO. The agreement involved the purchase of 1,031 kanals of land at Massan DaudKhail, Mianwali, valued at Rs1.13 billion. Frontier Ceramics had already paid an advance of Rs750.84 million toward the deal. Following discussions, it was agreed that Rs200 million would be refunded by May 2026, while the remaining balance, subject to further negotiations, would be settled after June 30, 2026. The CEO, who was the counterparty in the land deal, raised concerns over compensation for the withdrawal. The Board has directed management to hold talks with him to reach an “equitable and transparent settlement,” ensuring the company’s financial and strategic interests are protected. “This decision reflects the company’s commitment to safeguarding shareholder value, optimizing capital deployment, and strengthening existing operations instead of pursuing expansion in a saturated market environment,” the notice said. The company further announced that shareholder approval for the withdrawal of the agreement will be sought at the upcoming Annual General Meeting (AGM). Established in 1982, Frontier Ceramics Limited is engaged in the manufacturing and sale of wall and floor ceramic tiles, sanitary wares, and related products.