The Board of Directors of Frontier Ceramics Limited, a Pakistani manufacturer of ceramic tiles, has decided against pursuing new expansion projects, noting that the ceramics sector has reached a point of saturation where additional investments are unlikely to generate adequate returns for shareholders.
The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The Board of Directors of Frontier Ceramics Limited, in its meeting held on October 07, 2025, comprehensively reviewed the company’s future expansion plans in light of the prevailing market conditions. After detailed deliberation, the Board observed that the sector has attained a level of saturation where further investment in new projects would not yield adequate returns for shareholders,” read the notice.
Frontier Ceramics Limited
As part of this decision, the “Board resolved to discontinue the previously planned land acquisition for a new business unit and to withdraw the Land Sale Agreement dated January 08, 2021, executed with the Chief Executive Officer (CEO) of the company for purchase of 1031 kanal of land on ‘as is’ basis, situated at Massan DaudKhail, Mianwali for a total consideration of Rs1.13 billion, against which an advance of Rs750.84 million was paid”.
Following discussions, it was mutually agreed that Rs200 million would be refunded by May 2026, while the remaining amount—subject to further negotiations—would be settled after June 30, 2026.
The CEO, serving as the counterparty in the transaction, “has raised concerns regarding compensation for withdrawal of the agreement”.
“The Board has directed management to engage with the counterparty to reach an equitable and transparent settlement, ensuring full protection of the company’s financial and strategic interests.
“This decision reflects the company’s commitment to safeguarding shareholder value, optimising capital deployment, and strengthening existing operations instead of pursuing expansion in a saturated market environment,” read the notice.
The Board also announced that shareholder approval for the withdrawal of the agreement will be sought at the upcoming Annual General Meeting (AGM).
Frontier Ceramics Limited was incorporated in Pakistan as a public limited company in 1982. The company is engaged in the manufacturing and sale of wall and floor ceramic tiles, sanitary wares, and other related products.
