Interloop: Pakistan’s $500M Export Giant & a future multibagger stock?

From 10 knitting machines in 1992 to 5,000+ machines today, exporting $500M+ worth of products annually!

Most textile companies operate at a net margin of 5-7%, but Interloop has consistently operated at double-digit net margins. You might wonder—why does this company earn so much more than other textile companies?

The reason is premium customers.

There are two types of retailers in the world:

Low-cost retailers - Compete on price.

Branded retailers - Compete on brand value.

Low-cost retailers typically spend 40-60% of the product’s cost on manufacturing, while the rest covers operations and profit margins. Since their customers are extremely price-sensitive, they constantly look for cheaper suppliers. 

If they find a supplier that offers even 5% lower prices, they may shift their entire supply chain, even to another country.

On the other hand, branded retailers only spend 15-30% of their costs on manufacturing. The rest is spent on endorsements, celebrity affiliations, and expensive retail outlets. While price matters to them, they prioritize quality, timely delivery, and environmental sustainability.

Interloop has built strong working relationships with top global brands through supply chain certifications and on-time deliveries. Some of their major clients include Adidas, Nike, and Tommy Hilfiger.

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