Food Industry of Pakistan: Food Industry of Pakistan has been on its way to definitive success and expansion. One of the major rationales behind it is Pakistan is an agricultural state, where food items are a major part of its production. Though energy crisis acted as one of the major obstacles in efficiency of firms, the financial figures reflected an increase in profitability for top ranked firms but the increasing trend in inflation cannot be neglected on the other side. The crown listed food companies on stock exchange adhered to high profitability and market share. Unilever food Pakistan, Engro Foods, Nestle etc has been few of the top contributors in food industry of Pakistan, serving diverse range of food products to its customers. Unilever being a multinational retained its market position in Pakistan as well. Sales for Unilever foods Pk. increased leading to higher profit after taxation as per its financial statements. Sales grew by 18.7% and profit from operations was also up by Rs. 393 Million in 2013. Cash and cash equivalents at the end of the period also increased in 2013. Engro on the other hand being one of the top Pakistani Private Company to serve the food sectors with high profitability and market share and therefore is listed on Stock exchange. It is one of the fastest growing food companies in Pakistan to cater the needs of majority of people. Profitability was highest for Engro in 2012. Cash and cash equivalents were highest for Engro food in 2012 and decreased in 2013. Engroâ€™s revenue for 2013 was reported to be 37.8 billion. Profitability and cash flows have shown a positive trend for leading food companies because of their differentiated way of customer targeting. Wide product range and supplementary customer value has lead to the success of these leading food companies. On the other hand it cannot be eluded that small food companies have lost their positions in market and are in serious trouble due to the problems coping with low flexibility.