Two multinational giants acquired 2 Pakistani companies in just the last week alone as part of their growth strategy to establish presence in Pakistan.
Dutch dairy giant FrieslandCampina acquired 51 % of Karachi-based Engro Foods Limited, the second largest dairy producer in Pakistan. In the same week, Turkey's Arcelik announced purchase of Dawlance, Pakistan's market-leading home appliance maker. Both cited opportunity for double-digit growth in the emerging market as the main reason for their acquisitions.
Pakistan's Emerging Market Upgrade:
Earlier in June, Morgan Stanley announced its decision that Pakistan's MSCI shares index will be upgraded from frontier to emerging market status. Pakistan's Karachi Stock Exchange KSE100 Index has rallied 14% in 2016, making it Asia's best performing market so far this year in anticipation of the MSCI announcement.
Pakistan Dairy Market:
Pakistan is the third largest milk-manufacturing country in the world, with 38 billion liters on an annual basis, according to Retail Detail of Europe. FrieslandCampina wants to take advantage of the shift to packaged dairy products in Pakistan: not even 10 % of milk consumption comes from processed and packaged milk in Pakistan, but FrieslandCampina expects that to change in the near future.
growing middle class is switching to processed and packaged milk in Pakistan and Engro Foods provides a platform to build on. This acquisition will contribute to the value proposition we want to give our member dairy manufacturers. We will also help develop the agricultural industry in Pakistan with our extensive knowledge on the dairy manufacturing process and thanks to our Dairy Development Programme", CEO Roelof Joosten said.
To tap into the Pakistani market, FrieslandCampina is buying 51% of Engro Foods at an estimated price of $448 million, a securities filing said on Monday. Topline Securities said Engro Corporation will generate cash of around Rs. 47 billion, part of which will most likely be invested in energy-related projects with a higher rate of return, according to a report in Pakistan's Express Tribune newspaper.
Home Appliance Demand in Pakistan:
Pakistan's $3 billion home appliance market is experiencing double digit annual growth. It has attracted the attention of China's Haier, a multinational giant that recently acquired American General Electric's home appliance business.
Haier has 8 industrial complexes, two of which are foreign--one in the United States, and one in Pakistan, according to Xiaofei Li, the author of "China's Outward Foreign Investment: A Political Perspective". In these Special Economic Zones, Haier does localization to suit the needs of the consumers. For Pakistani market, Haier especially designed a washer that can hold 15 long gowns at one time. There are many more such Special Economic Zones envisaged as part of the CPEC (China-Pakistan Economic Corridor). It will be essentially an industrial corridor spanning almost the entire length of the country from the Arabia sea coast to the Karakorams where it enters China via the Karakoram Highway (KKH), the word's highest paved road.
Pakistan's privately-held Dawlance is also a major player in Pakistan's home appliance market. It is Pakistan's leading refrigerator and microwave brand, No. 2 air conditioners and No. 3 in the laundry category. In 2015, it reported $221 million in revenue and $45 million in EBITDA (earnings before interest, taxes, depreciation and amortization), according to Nikkei Asian Review.
“Pakistan is the sixth most populous country in the world with a population of 200 million people. In particular its young population and increasingly growing economy make it an enticing prospect as a market in the region. With the acquisition of Dawlance in Pakistan, Arçelik will employ a total workforce of 30,000 worldwide and will have a global production base of 18 manufacturing facilities including Turkey, Romania, Russia, China, South Africa and Thailand. Our acquisition is also a powerful example of south-south cooperation, representing a technology and know-how transfer between developing countries,” said Fatih Ebiçlioğlu, the head of the Consumer Durables Group of Koç Holding that controls Arcelik, according to Turkey's Hurriyet Daily News.
Smart money is starting to flow into Pakistan again as the world recognizes the country's tremendous economic potential as a growing emerging market. Investors and businesses are looking to profit from expanding Pakistani economy backed by growing middle class consumption and rising Chinese investments in energy and infrastructure.
China's Haier Expands Manufacturing in Pakistan
Japanese Multinationals Rank Pakistan Among Top Growth Markets
Chinese FDI in Pakistan For CPEC Projects
Pakistan Included in MSCI Emerging Market Index
Pakistan's Middle Class Grows to 55% of Population
China-Pakistan Industrial Corridor (CPEC)
Pakistan Launches $8.2 Billion Rail Upgrade Project
Companies being bought by foreign companies is nothing to celebrate.
You think Indians will celebrate if Infosys etc are bought by IBM ?
Remember during the Satyam scandal they made it clear that it would merge with other Indian IT companies(in the event Tech Mahindra) IBM,Accenture,Atos etc were explicitly told to look elsewhere.
Anon: "Companies being bought by foreign companies is nothing to celebrate."
So why is India now allowing 100% FDI in all sectors of the economy?
"Of particular interest to foreign investors would be defense, civil aviation and pharmaceutical sectors, all of which now allow 100 percent foreign investment. Before now, FDI in the defense sector was capped at 49 percent; now, 100 percent FDI will be allowed by the government on a case-specific basis, when “it is likely to result in access to modern and ‘state-of-art’ technology in the country.” The policy is also applicable to the manufacturing of small arms and ammunitions, which was earlier outside the purview of the policy."
Anon: " Remember during the Satyam scandal they made it clear that it would merge with other Indian IT companies(in the event Tech Mahindra) IBM,Accenture,Atos etc were explicitly told to look elsewhere."
Do you think foreign companies see much value in body shop businesses like Infosys relying on human trafficking of code coolies with H1B visas? They can directly hire as many code coolies as they want without buying Indian body shops.
Good news for Pakistan that more foreign companies are investing in Pakistan by buying local companies. The multi-nationals will bring much needed expertise and marketing know how. If Pakistan would just liberalize the economy and reduce regulatory and legal hurdles, foreign investment will flood in.
With 200 million people, and sitting astride a key geo-strategic area, Pakistan cannot be ignored.
#Pakistan Investors Shrug Off Corruption Allegations Against #NawazSharif #PMLN #PanamaPapers http://blogs.barrons.com/emergingmarketsdaily/2016/07/05/pakistan-stocks-shrug-off-corruption-allegations/ … via @barronsonline
Allegations of government malfeasance in Pakistan are unlikely to shorten the tenure of Prime Minister Muhammad Nawaz Sharif, according to Eurasia Group.
Despite corruption charges that surfaced in the Panama Papers, with support from the opposition in Pakistan, the small Global X Pakistan Exchange-traded fund (PAK) is up about 15% this year, reflecting MSCI’s recent announcement that it will add the country to the MSCI Emerging Market index. The fund was down 1% in recent trading, while the iShares MSCI Emerging Markets ETF (EEM) was down 2% and the iShares MSCI Frontier 100 ETF (FM) was down 1.3%.
Analyst Christopher Cannell writes:
“Prime Minister Nawaz Sharif of the ruling Pakistan Muslim League – Nawaz party (PML-N) will remain in London until … the end of the month of Ramazan, recovering from heart surgery even as he faces fresh corruption allegations stemming from the Panama Papers. Yet while the mounting allegations will weaken Sharif’s political position at a time when he was not present to defend himself, he will continue to lead the PML-N and early elections are highly unlikely. … The PML-N is likely to win the 2018 election with a reduced mandate …
The contest to replace him will be complicated by corruption allegations against many main contenders within the PML-N, sparking worsening political instability after the election … Sharif’s … approval rating has experienced a non-negligible drop from 75% in October 2015 to 54% in June 2016, the only poll conducted after the leaks. However, Sharif’s political standing is grounded on the PML-N’s strength in parliament, the tacit support of the Army, and the $46 billion China Pakistan Economic Corridor – a set of infrastructure projects critical to Pakistan’s future economic performance—negotiated by Sharif and his PML-N. The PML-N remains the largest party in the lower house, and would not pass a motion of no-confidence in the PM, and it retains control of its Punjab heartland, the most populous area of Pakistan.
… Sharif’s heir apparent is his daughter Maryam Nawaz Sharif, currently the party’s unofficial social media coordinator. She is also reportedly increasingly involved in policy and party meetings while her father convalesces in London, despite having no formal political position. However, she has been directly named in the Panama Papers … “
There are a number of stories on Pakistan opposition leader Syed Khursheed Shah in Pakistan Today. Also see our posts How Do you Define “Emerging”? Pakistan Counts The Ways, MSCI Jazzed On Argentina & Pakistan, Not Nigeria Or China and How Panama Papers Could Play Out In EM.
#IMF revises up #Pakistan's 2016/2017 growth forecast to 5 percent http://reut.rs/29mzJad via @ReutersIndia
The International Monetary Fund (IMF) on Tuesday increased to 5 percent its forecast for Pakistan's growth in the fiscal year to June 2017, from a previous estimate of 4.7 percent, citing China's plans to invest in road and energy infrastructure.
In September, Pakistan will end a three-year $6.7-billion financial assistance programme from the IMF, after the economy recovered from a series of financial crises, with growth at an eight-year high and increased foreign exchange reserves.
Fund officials say Pakistan has met all performance criteria for the assistance programme but urged Islamabad to keep tackling structural reforms to further increase growth and make it more inclusive.
"Growth is expected to strengthen to 5 percent in FY 2016/17, supported in part by an expected pick-up of investment related to the China Pakistan Economic Corridor (CPEC)," the fund said in a report.
The $46-billion CPEC project will focus on road building and energy infrastructure to end chronic power shortages in Pakistan. A highway is expected to link Western China with the port of Gwadar port on the Arabian Sea.
Fund officials say Pakistan's economy is likely to have grown 4.7 percent in the fiscal year to June 2016, a touch higher than their May estimate of 4.5 percent.
"Inflation is expected to remain contained at 5.2 percent in FY 2016/17, well-anchored by prudent monetary policy," the IMF added.
The IMF said Pakistan had also sought a four-week extension to the loan programme from Sept 3 to Sept 30 to "allow sufficient time to conduct discussions for the final review". It added Pakistan was in strong position to repay the IMF.
"Pakistan’s financing needs are fully covered for the remainder of the program and the country’s capacity to repay the Fund remains strong owing to supportive macroeconomic policies, resilient remittances inflows, and increasing foreign exchange reserves," the IMF said.
#China Grants $260m for #Gwadar International Airport in #Pakistan #CPEC http://crss.pk/story/china-grants-260m-for-gwadar-airport/ …
China is granting Pakistan some $260 million for the construction of the Gwadar International Airport on the Arabian Sea, national media reported Tuesday.
Government officials shared this information with the Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) in a recent meeting at Islamabad, the daily Express Tribune said. The entire amount of $ 260 million is a grant from the Chinese government, the parliamentarians were informed. (http://tribune.com.pk/story/1136476/infrastructure-gwadar-airport-cost-260m/)
Gwadar, also being developed as a deep-sea port, is the culmination of the CPEC – the first initiative under China’s One Belt One Road (OBOR) trade connectivity plans – that will connect Kashgar in west Chinese province of Xinjiang through a nearly 3000 km route.
Gwadar is located in the ethnic Baloch part of the southwestern Balochistan province, where a low-intensity Baloch nationalist movement has been stoking unrest.
This airport would be able to handle the largest of passenger planes including the A380 Air Bus and Boeing 747-400.
Additionally, the Chinese government has given another grant of $10 million for the construction of the Pakistan-China Vocational and Technical Training Institute to help locals acquire skills.
These grants are part of $ 46 billion infrastructure investment and communications’ development plan under the CPEC. It includes construction of highways, industrial zones, and energy projects across Pakistan.
$260 million is like a gift or does it need to payback like a loan in 5 years?? Also same for the 46 billion some say no karz some say high interest. It is like nobody knows
Qasim: "$260 million is like a gift or does it need to payback like a loan in 5 years?? Also same for the 46 billion some say no karz some say high interest. It is like nobody knows"
My research so far tells me there are three kinds of financing of CPEC:
1. Grants like the $260 million for Gwadar International Airport.
2. Concessionary loans to Pakistani government from China-led Asian Infrastructure Investment Bank along with Asian Development Bank and World Bank.
3. Chinese ExIm (Export-Import) Bank loans to Chinese contractors who will do energy projects on Build-Operate-Transfer (BOT) basis.
$260 million for the airport is high. Similar airports in terms of cargo and passenger traffic costs lot less. Cochin and Hyderabad airports & infrastructure related costs were around 50 million each!
Jay: "$260 million for the airport is high. Similar airports in terms of cargo and passenger traffic costs lot less. Cochin and Hyderabad airports & infrastructure related costs were around 50 million each! "
Not all airpots are alike. Cost depends on a number of factors: Number and length of runways, passenger terminals, cargo terminals, passenger traffic, cargo volume, etc etc.
China and Pakistan see Gwadar as Hong Kong West as trade hub in size and scope.
Check out the following link on world's largest airport projects:
Sir, you are right about all airports are different. The HK comparison is understood but the land acquisition, cost analysis, foundation specs are not at the same level as HK - HK being a dense metro.
I would be interested in the feasibility studies and appraisment specs and cost of Gwadar airport. It just seems too high
Jay: "The HK comparison is understood but the land acquisition, cost analysis, foundation specs are not at the same level as HK - HK being a dense metro."
Gwadar Airport is only $260 million, not several billion dollars as some of the biggest airport projects in China.
#Pakistan saw 23% growth in airline passengers in 2015; #Gwadar airport growth fastest at 73% #CPEC http://www.anna.aero/2015/09/02/pakistan-sees-a-rise-in-airline-seat-capacity-of-23/ … via @annaaero
Pakistan’s commercial airports have seen major growth in capacity in the past 12 months, as S15 seat capacity is showing a rise of 23%. Of all the airports in Pakistan, the one that is recording the greatest growth in capacity is Gwadar (13th largest in S15), which is showing an increase in capacity of 73%. A total of eight airports are recording a growth rate over the past 12 months that is greater than 60%, with four of these airports being in the top 12 (highlighted in light green). Only one airport is showing a decline in capacity when compared with S14, Skardu. The 14th largest airport in 2015 was the 11th biggest last year. However, the facility has witnessed a decline in seat capacity of 14% according to OAG Schedules Analyser. In the top 12, the airport order pretty much remains constant, with Multan (+64%), Quetta (+62%) and Faisalabad (+61%) all climbing one place as a result of all of them seeing a growth of over 60%. Turbat is a new airport to the top 12 (13th in S14) as a result of Skardu’s capacity decrease.
After seeing a rise in capacity of nearly 26%, the domestic market is the largest in Pakistan. The country market that is recording the best growth in the top 12 is Sri Lanka. The country pair is served by two routes to Colombo from Karachi and Lahore, with the latter only being launched in November last year with a twice-weekly service operated by Mihin Lanka. Services to Karachi have seen an increase in capacity of 11%, a sector flown by SriLankan Airlines. Of the country markets in the top 12, the only one to show a decline in capacity is Kuwait. In total there are three connections between Kuwait City and Pakistan for S15 (same as in S14), Lahore (-6%), Islamabad (+1%) and Sialkot (-23%). Surprisingly Karachi, the largest airport in Pakistan relating to seat capacity, does not have a direct service to Kuwait.
Over the past 12 months, Turkish Airlines has grown seat capacity out of Pakistan by 38%, beating the MEB3 carriers of Emirates (+13%), Qatar Airways (+28%) and Etihad Airways (+18%). What should also be noted is that Emirates’ sister airline, flydubai (highlighted in light green), has now overtaken Etihad Airways in relation to the monthly seat capacity on offer by both airlines in S15, helped by the carrier reporting a growth in capacity of 66%, and climbing from 12th spot in 2014 to eighth in 2015 in relation to Pakistan’s top 12 airlines. This has been helped in part by the airline recently launching services from Dubai to Faisalabad. Nonetheless the number one out of Pakistan remains the country’s national carrier, Pakistan International Airlines. The airline has reported a growth in capacity when compared to the same time period of last year of 25%. None of the airlines in the top 12 are reporting seat capacity reductions in S15. However, Air Indus is showing a consistent pattern with 0% growth and offering the same amount of seats as S14, but growth from Airblue means that the airline drops to fifth in S15 from fourth in last year.
#Pakistan #textile company to enter fast growing #dairy business
A renowned textile company has made forays into the dairy business and intends to introduce a new milk brand next year in a bid to grab a slice of the pie in the growing but still underdeveloped sector.
“Interloop Limited, one of the world’s largest socks manufacturer, has poured Rs2 billion into the dairy business and set up a new company named Interloop Dairies Limited. It is going to launch its milk brand next year,” said Navid Fazil, Chief Executive Officer of Interloop Dairies, in an interview with The Express Tribune.
This is happening at a time when Dutch dairy company FrieslandCampina signed an agreement with Engro Corporation for the acquisition of 51% stake in the latter’s subsidiary Engro Foods for $448 million.
Pakistan is said to be the fourth largest milk producer in the world, but only 10% of the milk produced is sold in packages. The packaged milk market is dominated by a couple of players.
"#India's Growing At 5-6%, Less Than #Modi Government Claims" "#Pakistan's prospects bright" Morgan Stanley's Sharma
http://www.huffingtonpost.in/prabha-chandran/exclusive-india-will-rise_b_10750458.html … via @HuffPostIndia
Sharma says: "I think India is growing at a pace between 5 and 6%, or about two points lower than the government claims. That is a huge difference -- but these days a pace better than 5% is actually quite good, even for a relatively lower income country. At a time when slower population growth, high debts, falling growth in global trade and capital flows, and other forces are slowing the global economy, every class of nations needs to lower its expectations. It may be a long time before we see another emerging nation post growth in excess of 7-8% in this new era. The risk for India is that the state will try to push growth faster than is possible or practical, in this slow growth era"
"Sri Lanka, Pakistan and Bangladesh all have bright prospects going forward, with credit growth under control, strong working-age population growth, inflation in check..."
You can make 3 times more money by betting on stocks in #Pakistan (18% YTD) than in #India (6%) - The Economic Times
At a time when the world has turned its focus on India, its neighbour Pakistan is running away with all the honours in financial markets.
Data compiled by ETMarkets.com shows you could have made three times more money by betting on the Karachi Stock Exchange's KSE30 index than on Bombay Stock Exchange's Sensex.
The KSE30 has given 18 per cent returns so far this year through July 12, making it the best-performing Asian index. Compared with that, the BSE Sensex has given just 6% ..
While, IMF has marked India as the brightest spot in the global economy, it has also been raising its forecast for Pakistan. In May, IMF raised Pakistan's GDP forecast for FY2017 to 5 per cent from 4.7 per cent.
"Growth is expected to strengthen to 5 per cent in FY 2016-17, supported in part by an expected pickup of investment related to CPEC ..
Not only that. The London-based BMI Research, a financial market analysis firm, has rated the country among the next big drivers of global economic growth. Others on the list are Bangladesh, Ethiopia, Egypt, Kenya, Indonesia, Myanmar, Nigeria, Philippines and Vietnam.
One of the issue for a retail US investor is how to invest in this Market. Outside of PAK ETF which is very very small not much is available.
Maybe you can educate us how?
Jawaid: "One of the issue for a retail US investor is how to invest in this Market. Outside of PAK ETF which is very very small not much is available. Maybe you can educate us how?"
PAK ETF is pure play. Other index and mutual funds have various weights in Pakistani stocks.
the iShares MSCI Frontier Market ETF (FM) and the iShares MSCI Emerging Markets ETF (EEM)
There are also mutual funds like Franklin Templeton Asia Growth Fund
Emerging market funds took a big hit due to the failed coup in Turkey.
It is very risky to just invest in the KSE - no foreign investment firm does that - it becomes a moot point to talk about betting on the KSE since it is not a viable option. Hopefully your blog followers are not putting their life savings in such areas
Increase in Pakistan’s energy consumption depicts higher economic activities
Pakistan's primary energy consumption increased by 5.9 percent to 78.2 million ton oil equivalent (MTOE) in 2015, compared with 73.2MTOE in 2014 depicting higher economic activities.
According to the statistical data of British Petroleum on energy use around the world, the primary energy consumption in China grew by 1.12 percent from 2014 to 2015 that has resulted in slowdown in China’s economy. India’s primary energy consumption increased by 5.1 percent during the same period which is lower than that of Pakistan. Indian GDP growth, though highest in the world remains much below the peaks it attained at the start of this decade.
The fuels consumed for producing primary energy show that in 2014, Pakistan consumed 22.8MTOE of oil that increased to 25.2MTOE in 2015. Its natural gas use also increased from 37.7MTOE in 2014 to 39.0MTOE in 2015. The consumption of coal remained the same at 4.7MTOE in both years.
According to the report, electricity consumption in Pakistan increased from 96.2 terawatt-h in 2008 110.0 terawatt-h in 2015. The increase was restricted to 99.3 terawatt-h till 2012; showing cumulative increase of 4 percent only, but in the next three years the consumption cumulatively increased by 10.7 percent of which 2.7 percent increase was in 2015 over 2014. Indian electricity consumption in comparison increased more robustly being 833.4 terawatt-h in 2008 that increased to 1,304.8 terawatt-h in 2015.
India produces 45.5MTOE from natural gas, 407.2MTOE from coal that is 100 times more than the primary energy that Pakistan derives from coal. Its hydro electric generation is 8.6MTOE. It derives 15.5MTOE from renewable that is 30 times more than what Pakistan obtains from renewable. The primary energy obtained by China from natural gas is 177.6MTOE, from coal it is a whopping 19,203MTOE. Its hydro electric energy amounts to 254.9MTOE, nuclear 38.6MTOE and renewable 62.7MTOE. The renewable energy extracted by China is equivalent to 60 percent of the total energy produced in Pakistan.
Bangladesh in 2008 consumed only 34.2 terawatt-h electricity that was almost 1/3rd of the power consumption in Pakistan. In 2015 the gap was reduced to 60 percent of the power consumed in Pakistan. Bangladesh is exporting much more than Pakistan despite low power use because it adds high value to its apparel. The power requirement of the garment industry is nominal when compared with spinning, weaving and processing that produce low value-added textiles exported by Pakistan. The electricity consumption in China increased to 5,810 terawatt-h in 2015 compared with 3495 terawatt-h in 2008.
Coal, wind and solar energy are the cheapest source of energy around the world. Wind and solar along with hydro electricity are the cleanest energy fuels. China fulfilled 1,920MTOE of its energy needs from coal, India 388.7MTOE, and Pakistan only 4.7MTOE. Coal use for energy production is confined only to the private sector in Pakistan. Around 3,000MW coal based power plants are expected to be commissioned by 2019 after which share of coal in the energy mix would substantially increase. Wind power consumption in China was 41MTOE in 2015, it was 9.4MTOE in India and only 0.1MTOE in Pakistan. Solar power production in 2015 was 8.9MTOE in China, 1.5MTOE in India and only 0.3MTOE in Pakistan. Pakistan is also on the course to double its hydro electric production to over 16,000MW by the end of 2021.
#Karachi #Pakistan’s #Electric Utility K-Electric Rises After $1.6 Billion #Shanghai Offer. #China http://bloom.bg/2c1QcCc via @markets
Pakistan’s K-Electric Ltd. rose to the highest in more than a year and a half after Shanghai Electric Power Co. said it plans to buy a controlling stake in the power utility valued at $1.6 billion.
China’s state-backed Shanghai Electric Power intends to acquire as much as 18.3 billion shares, representing 66% of K-Electric, according to a notice sent by offer manager Arif Habib Ltd. to the Pakistan Stock Exchange. K-Electric shares rose 1.3 percent to 9.21 rupees after the announcement, the highest since January 2015. Arif Habib rose by the 5 percent limit, the most in a month.
The Chinese company said last week it’s doing preliminary preparation work on acquiring a stake in K-Electric, which serves about 2.2 million customers and employs 11,000 people in Karachi, Pakistan’s coastal commercial capital. Shanghai is vying with Chinese clean-energy group Golden Concord Holdings Ltd., French utility Engie SA and at least one investment fund, people with knowledge of the matter said earlier this month.
Bidders were asked to submit binding offers by the end of this month for Abraaj Group’s 66 percent holding in the Pakistani company, according to the people, who asked not to be identified as the information is private. Pakistan’s government owns another 24 percent stake in K-Electric, according to Bloomberg-compiled data.
Acquiring control of K-Electric would be Shanghai Electric Power’s biggest overseas purchase, surpassing its 2014 deal to buy a $399 million stake in Maltese utility Enemalta Plc, according to data compiled by Bloomberg.
Abraaj invested $361 million for 50% KESC (renamed K-Electric) stake in 2008. Shanghai is now buying 66% stake for $1.6 billion.
#China's billions are luring other foreign investors to #Pakistan. #CPEC #MergersAndAcquisitions #FDI http://bloom.bg/2fSiinf via @business
After years of flat direct foreign investment, it has taken China’s pledges of billions to get overseas companies to start looking beyond Pakistan’s negative headlines on security challenges and power outages.
While investment into Pakistan has been little changed in the three years since Prime Minister Nawaz Sharif was elected, companies including Turkey home appliances maker Arcelik AS and Dutch dairy giant Royal FrieslandCampina NV are making acquisitions in Pakistan.
Along with a military crackdown against militants following a 2014 school massacre and the government’s plans to end power shortages by 2018, it is China’s vote of confidence in the country that has boosted investor confidence. It pledged $46 billion in soft loans and investments in a so-called China-Pakistan Economic Corridor, or CPEC, announced last year.
“Pakistan has turned the tide,” said Mattias Martinsson, the Stockholm-based chief investment officer at Tundra Fonder AB, which holds about $160 million in Pakistani stocks. “The CPEC agreement was probably the trigger for many investors to actively start looking. We all know China does not take short term decisions.”
New power plant projects fueled by Chinese investment are expected to help with Pakistan’s chronic outages and pave the way for investment in other industries. Consumer companies are taking the lead to cater to the world’s sixth largest nation by population.
“If you look at demographic and population, it’s just a great place to be,” said Naz Khan, Chief Financial Officer at Engro Corporation Ltd. whose food subsidiary is being bought by Dutch dairy company FrieslandCampina, which is looking to take a 51 percent stake in a deal valued at about $545 million at the Nov. 4 closing.
Consumer spending in Pakistan has increased 83.4 percent in the past five years compared with 48.7 percent in the Asia-Pacific region, according to data by Euromonitor International, a consumer research firm. Its forecasts show Pakistan’s disposable income has more than doubled in six years.
“Its young population, increasingly growing economy, makes it an enticing prospect as a market in the region,” Polat Sen, chief financial officer at Arcelik, said by e-mail. “Pakistan is on the verge of an investment-led growth cycle.”
Arcelik is scheduled to complete its purchase of Pakistan’s home appliance maker Dawlance for $243.2 million this month. It plans to focus on the local market and closely evaluate opportunities in the current export markets of Dawlance, according to Sen.
Pakistan’s government expects the economy to grow at the fastest pace in a decade after completing an International Monetary Fund loan program that averted a balance of payment crisis and boosted foreign exchange reserves to a record level. The economy is expected to grow around five percent annually for the next three years and Arcelik plans to keep its sales growth above that, according to Sen.
Pakistan’s automobile sector has also attracted interest with Renault entering exclusive negotiations with Ghandhara and Al Futtaim to develop a brand in Pakistan, a spokeswoman said by phone on Nov. 3. Meanwhile, investments are expected to jump to $5 billion in the year starting July from $1.28 billion in the last fiscal year as power plants come on line, Miftah Ismail, chairman of the nation’s Board of Investment, said in an August interview.
“I think you will also see Pakistan moving more toward merchant markets, you know people coming in and start taking risks," Khan said. “ I think this is just the beginning."
#Pakistan offers great-potential for #Turkish firms investments. #Dawlance #Cocacola #Erdogan #Turkey
Atilla Yerlikaya, the president of Turkey-Pakistan Business Council of External Economic Relations Committee, emphasized Pakistan's economic potential for Turkey, showing a brief glance into the country's economic opportunities.
According to Yerlikaya, during Erdogan's last visit to Pakistan, Erdogan and Pakistani PM Nawaz Sharif came together with businessmen from both countries and called for a closer cooperation to increase bilateral trade volume and investments to a great degree.
He said, ''President Erdogan praised the Koç Group for investing in Pakistan by buying Dawlance co, a prominent white goods producer of Pakistan for $243 million and Anadolu Group for Coca-Cola investment which exceeds $500 million. He cited them as examples of successful economic cooperation between two countries.''
Highlighting Pakistan's great potential for business, he said, ''Within the context of the Project of China-Pakistan Economic Corridor, Pakistan's energy and logistic infrastructures will be renewed. Considering Pakistan's $270-billon national income, one can easily grasp how a $50-billion investment makes sense. These investments will unlock agricultural and industrial sectors of the country for Turkey."
#Dubai's #Abraaj Capital takes majority stake in #Pakistan's Jhimpir #wind power co. #renewable http://www.thenational.ae/business/energy/abraaj-takes-majority-stake-in-pakistani-wind-power-company … via @TheNationalUAE
Abraaj Group is to acquire a majority stake in a clean energy company in Pakistan, its second investment in the country this year.
The Dubai company is acquiring the stake in Jhimpir Power from Burj Capital.
It is developing a 50 megawatt wind power project in Sindh, south-east Pakistan, which is expected to be completed early next year.
The area, known as the Jhimpir wind corridor, is about 120 kilometres east of Karachi. It already has more than 550MW of wind farms in operation and more than 1 gigawatt is under construction or planned.
Pakistan has been working on establishing investor-friendly policies to attract investment into the renewables sector.
The country is targeting a 6 per cent mix of renewables in its total power mix by 2030. While this may seem small compared with the UAE’s goals of clean energy sources making up 30 per cent of energy generated by 2030, Pakistan needs far more infrastructure expansion before capacity can be added.
"With a shortage of over 6,000MW and rising power consumption in Pakistan today, we are excited by the sheer size of the clean energy infrastructure opportunity, enabling government policies and the potential of the Jhimpir wind corridor," said Sev Vettivetpillai, the managing partner and head of the Abraaj thematic fund.
This is not Abraaj’s first foray into the country’s energy sector. The investment firm sold its stake in power utility K-Electric for US$1.7 billion in October, representing one of the largest private transactions in Pakistan.
"Having invested across the energy value chain in growth markets, including the power sector in Pakistan, we look forward to growing our renewable footprint and consolidating our presence in the sector," Mr Vettivetpillai said.
The Dubai company has invested across the energy value chain to the tune of $1bn in 10 investments in growth markets.
Saad Zaman, an Abraaj partner, said that this was just continuing on the success of the company’s first wind project in Pakistan. "The attractive renewable power policy framework implemented by the government has created a strong impetus for the private sector to invest in clean energy," he said.
Abraaj said this month that it had acquired a stake in Islamabad Diagnostics Centre.
#Tesco tests waters in #Pakistan with Alpha #Supermarkets tie-up. Plans 50+ stores http://reut.rs/2lVvXc9 via @Reuters
Britain's biggest retailer Tesco (TSCO.L) will stock its products at a Pakistani supermarket chain, a Tesco official said on Thursday, dipping its toes in a country of nearly 200 million with rising consumer spending and a growing middle class.
Tesco has been expanding rapidly in emerging markets to bolster sluggish growth in western Europe and is among a growing band of companies attracted by Pakistan's fast-growing consumer market, encouraged by the highest economic growth since 2008 and improved security.
"We have agreed on a wholesale partnership with Alpha Supermarkets in Pakistan, under which Tesco products will be stocked at two of its stores," Jared Lebel, head of new market development at Tesco, told Reuters.
He said that Limestone Private Limited, which owns the Alpha Superstores chain, planned to open 50 smaller express stores and four Alpha stores stocking Tesco products within the next three years.
"We are excited about Pakistan as a market," Lebel said. "A big factor in coming to Pakistan is rising consumer spending."
A spokesman for Tesco in London said: "We're looking forward to seeing how customers respond."
Fauzia Khuhro, head of business development at Limestone, told Reuters that Tesco products would hit its shelves in about 10 days.
"Alpha Supermarkets will be the only retailer in Pakistan that stocks Tesco private-label products," Khuhro said. "We will offer a complete range of Tesco product categories, from food and non-food items to frozen and fresh foods."
Tesco's partnership with Alpha Supermarkets was announced by British High Commissioner Thomas Drew and Limestone at a press briefing in Karachi on Tuesday.
Dr. Jawaid Abdul Ghani, a professor at Karachi School of Business Leadership, has recently analyzed household surveys in India and Pakistan to discover the following:
1. As of 2015, car ownership in both India and Pakistan is about the same at 6% of households owning a car. However, 41% of Pakistani household own motorcycles, several points higher than India's 32%.
2. 12% of Pakistani households own a computer, slightly higher than 11% in India.
3. Higher percentage of Pakistani households own appliances such as refrigerators (Pakistan 47%, India 33%), washing machines (Pakistan 48%, India 15%) and fans (Pakistan 91%, India 83%).
4. 71% of Indian households own televisions versus 62% in Pakistan.
#Pakistan’s growing economy attracting #Turkish investors, companies. #CPEC #China
ISTANBUL / TURKEY:
Pakistan’s growing Gross Domestic Product is becoming an attraction for Turkish companies as they scout for investments in the country, said Foreign Economic Relations Board of Turkey General Secretary Mustafa Mente.
“The potential of Pak-Turk relations is much more than what the bilateral trade volume suggests,” Mente told The Express Tribune.
Pakistan is among the first three countries when it comes to initial visits for any elected government of Turkey, he said.
“The good news is that many Turkish companies now have their presence in Pakistan and the country’s rising GDP is fast becoming an attraction for them to look for more business avenues,” he added.
Mente said the entire South Asian region, which includes Pakistan, India and Bangladesh is unique due to its huge population, almost 1.7 billion, and would be a choice for Turkish companies to invest.
But he said distance and cost of travelling will remain issues.
“We are also facing the same issue when it comes to the US markets, though there are a lot of opportunities for SMEs and other such businesses.”
Pakistan and Turkey are also in negotiation to finalise a Free Trade Agreement to boost bilateral trade. As per the Pakistan Business Council, the current level of bilateral trade between the two countries is $584 million, which has potential to go up to $5 billion.
Currently, Pakistan’s exports to Turkey stand at $391 million, whereas Turkey’s exports amount to $193 million.
In recent years, few Turkish companies have invested directly in Pakistan, particularly in Punjab, but that is more due to the government’s urge to replicate some Turkish models in the provincial capital.
The prime example is of Albayrak that is currently providing its services in transportation and waste management sectors. Some private groups have also invested directly in the electronic goods segment primarily to cover the region due to the upcoming China-Pakistan Economic Corridor, which will connect the region via rail and road links.
Mente said that currently negotiations are under way for Foreign Direct Investments in textile sector particularly in fabrics and yarn; however, some technical issues remain unresolved.
“Both sides are interested in investing in the textile sector but we have to find common ground,” he said, adding that he was hopeful that the level of Turkish investments in Pakistan as well as Pakistani investments in Turkey will rise across all sectors including health and tourism.
Livestock is an important sector of
agriculture (in Pakistan). Its role is pivotal towards rural
socio economic development. Nearly 8
million families involved in livestock raising
deriving more than 35% income from
livestock production activities. It is central
to the livelihood of the rural poor in the
country. It is a source of cash income,
providing a vital and often the only
source of income for the rural and most
marginal people. It can play an important
role in poverty alleviation and foreign
exchange earnings for the country.
Livestock contributed approximately
58.6% to the agriculture value added and
11.6% to the overall GDP during 2015-
16 compared to 56.4% and 11.7%
during the corresponding period last year,
respectively. Gross value addition of livestock
at constant cost factor of 2005-06
has increased from Rs. 1247 billion
(2014-15) to Rs.1292 billion (2015-16),
showing an increase of 3.63% over the
same period last year.
Livestock of Pakistan include cattle,
buffalo, sheep, goat, camels, horses, asses
and mules and they produce milk, meat,
wool, hair, bones, fat, blood
eggs, hides and skins
among which milk and meet
are the major products.
Besides production, these
animals are also used for
draught purposes. As per
IFCN (International Farms
Comparison Network) Dairy
Report 2014, Pakistan is 3rd
largest milk producing country
in the world. Milk is produced
by buffalo, cattle, sheep, goat and
camel but being major contributor in milk
production, cattle and buffalo are considered
as major dairy animals.
More than 96% of the milk produced
in Pakistan comes from cattle and buffalo.
The rest of it is collectively produced by
sheep, goat and camel which, most of the
time, is not sold as such, rather consumed
domestically or mixed with buffalo and
cow milk. Estimated current National
livestock Population based on National
Livestock Census 2006 and Economic
Survey of Pakistan 2014-15 are given in
#Malaysia Axiata's Edotco buys 55% stake in #Pakistan cell tower co with Pakistan's Dawood Hercules 45% for US$940m
KUALA LUMPUR (Aug 30): Axiata Group Bhd's 62.4%-owned subsidiary edotco Group Sdn Bhd announced its biggest expansion plan to-date with the proposed acquisition of 13,000 towers in Pakistan for US$940 million to solidify its position as one of the largest independent tower companies in the world.
In a statement today, edotco said it, together with Pakistan-listed Dawood Hercules Corp Ltd (DH Corp), is acquiring the towers from Pakistan Mobile Communications Ltd (PMCL).
DH Corp, with a market capitalisation of US$600 million, is one of Pakistan's largest conglomerates with a varied business portfolio which includes fertilisers, foods, chemical storage and handling, trading, energy — including independent power production, renewables and petrochemicals.
The proposed deal follows edotco's recent acquisition of Tanzanite Tower Private Ltd and its 700 towers in June.
Today, edotco said Tanzanite has entered into an agreement with PMCL to acquire the latter's tower subsidiary Deodar Private Ltd and its portfolio of over 13,000 tower assets.
As part of the transaction partnership, DH Corp will be investing a 45% equity stake in edotco Pakistan Pte Ltd, which in turn owns Tanzanite, with the remaining 55% controlling stake to be held by edotco.
The total transaction consideration for the proposed acquisition will be funded through a combination of external local debt of US$600 million and an equity split of US$174 million by edotco and US$166 million by DH Corp for their respective stakes.
Subject to the customary and regulatory conditions precedent being fulfilled, the acquisition is scheduled to be completed in the fourth quarter of 2017.
With its existing portfolio of over 26,000 towers owned and operated across six countries, the move will effectively place edotco as the eighth largest independent tower company and second largest multi-country tower operator globally.
The acquisition will lead edotco to have a portfolio of approximately 40,000 towers being operated and managed across the region, comprising some 32,000 owned and operated with a further 8,000 towers managed through a range of services provided.
edotco chief executive officer (CEO) Suresh Sidhu said the acquisition of Deodar is a critical part for the company's growth strategy and ambition to position edotco as the leading independent telecommunications infrastructure services provider in Asia.
"With DH Corp as our partner, we are confident in the potential of the market in Pakistan and will continue to demonstrate our long-term commitment to supporting the development and enhancement of the country's telecommunications infrastructure," he said.
As the majority shareholder of edotco, Axiata's president and group CEO Tan Sri Jamaludin Ibrahim said the group supports the proposed transaction, which will further elevate edotco's position as a leading independent tower company globally and bring strong financial accretion to the company.
"It will also help create a more balanced portfolio for edotco in having three operations of significant size and nature which are Malaysia, Bangladesh and Pakistan," he said.
Singer Pakistan to acquire appliance makers
Singer Pakistan Limited on Monday announced to acquire home appliance manufacturers Cool Industries and Link Well in shares swap arrangements.
“Cool Industries (Private) Limited (CIL) will be merged with and into Singer, against which 93.975 million shares will be issued to the shareholders of CIL based on a swap ratio of approximately 1.79 shares of Singer for every one share of Cool Industries (Private) Limited,” a bourse filing said.
Moreover, Link Well (Private) Limited (LWL), famous for brand name Waves, will be merged with and into Singer against which 2.475 million shares will be issued to the shareholders of LWL based on a swap ratio of approximately 0.33 shares of Singer for every one share of Link Well (Private) Limited.
Link Well provides products and services for gas appliances and home appliances.
Singer Pakistan Limited will be renamed into Waves Singer Pakistan Limited as a result of merger.
Haroon Khan, chief executive officer at Singer Pakistan said the business environment remained challenging in the consumer appliances sector due to severe competition and entry of new retailers with rise in consumer financing.
“However, the management remains committed to continue adding value to the business by continually investing, innovating and improving operations,” Khan said in the company’s January-June financial report.
But, the market did not positively react to the development as Singer shed three percent to close at Rs39.40/share.
Singer Pakistan also announced to demerge its retail business into its wholly-owned subsidiary, Electronics Marketing Company (Private) Limited, which will issue 24.8 million shares in favour of Singer.
“The scheme of arrangement is subject to obtaining all necessary shareholders’, creditors’ and regulatory approvals, and the sanction of the scheme by the High Court of Sindh along with fulfillment of related legal formalities,” the notice to Pakistan Stock Exchange said.
Last year, Singer Pakistan’s Amsterdam-based parent also offloaded its holding in the local operation.
The company said the divestment was a policy decision of Singer Asia Limited, indicating its departure was not Pakistan-specific.
The board has already approved sale of the company’s factory land and buildings
and to simultaneously enter into a lease agreement with the prospective purchaser of the property for the continuation of uninterrupted use of the required area for business and manufacturing activities of the company.
“Proceeds are expected to be substantially used for the settlement and the reduction of the company’s borrowings enabling the company to reduce its borrowing cost,” the company said in the earnings report.
#China’s #dairy giant Yili Group expresses intent to acquire 51% of #Pakistan's Fauji Foods
A China-based dairy firm has expressed its intention to acquire a majority stake with management control in Fauji Foods Limited (FFL), known for its Nurpur brand, according to a notice sent on Tuesday to the Pakistan Stock Exchange (PSX).
The potential acquirer, Inner Mongolia Yili Industrial Group Company Limited, will hold talks to acquire 51% voting share in FFL from its parent firm, Fauji Fertilizer Bin Qasim Limited (FFBL), and other shareholders.
The announcement was taken as a positive by investors as FFL’s share price gained by the maximum limit of 5%, increasing Rs1.72 to Rs36.12 with 345,000 shares changing hands on a day the KSE-100 Index witnessed profit-taking and plunged 1.94%. FFBL’s share price also hit the upper price limit, closing at Rs39.55 with a volume of 259,000 shares.
Fauji Fertilizer to inject $39m into Thar Energy
“We have received a notice of public announcement of intention from a potential acquirer, Inner Mongolia Yili Industrial Group Company Limited, whereby the potential acquirer has expressed its intention to enter into negotiations or discussions with Fauji Fertilizer Bin Qasim Limited (FFBL) for the proposed acquisition of upto 51% of the voting shares and/or control in Fauji Foods Limited, from FFBL and other shareholders,” FFL company secretary Brig, Zahid Nawaz Mann was quoted as saying in the PSX notice.
Fauji Cement’s profit jumps 19% to Rs824m
Inner Mongolia Yili Industrial Group Co. Ltd. is a China-based company, principally engaged in the processing, production and distribution of dairy products and mixed feedstuffs, according to Reuters. Subject to execution and approval of the deal by regulators, this would be the second transaction involving foreign direct investment (FDI) in the current month.
Around a week ago, Dutch company, Vopak LNG Holding B.V., executed an agreement with Engro Corporation to acquire 29% stake in Elengy Terminal Pakistan Limited (ETPL) at a price of $38 million.
The country received a total of $2.76 billion in FDI in the previous fiscal year 2018.
The transaction, subject to approval, will also be the second major acquisition in Pakistan’s formal food sector by a foreign firm. Earlier, another Dutch firm, FrieslandCampina Pakistan B.V. (FC Pakistan), acquired 51% stake in Engro Foods at a price of $446.81 million in December 2016.
#American #agribusiness giant Cargill to grow #Pakistan business with US$200 million investment for expansion across its #agriculture trading and supply chain, edible #oils, #dairy, #meat and animal feed businesses while ensuring safety, food traceability. https://www.thenews.com.pk/latest/420270-cargill-to-grow-pakistan-business-with-us200-million-investment
Cargill renewed its long standing commitment to Pakistan by announcing plans to invest more than US$200 million in the next three-to-five years.
The announcement was made soon after Cargill’s global executive team, led by Marcel Smits, head of Global Strategy and Chairman, Cargill Asia Pacific region, and Gert-Jan van den Akker, president, Cargill Agricultural Supply Chain, met with the Prime Minister Imran Khan and other senior government officials to discuss the company’s future investment plans.
Being a global food and agriculture producer with a strong focus on Asia, Cargill aims to partner on Pakistan’s growth by bringing its global expertise and investment into the country.
The company’s strategy includes expansion across its agricultural trading and supply chain, edible oils, dairy, meat and animal feed businesses while ensuring safety and food traceability.
Cargill will bring world class innovations to support the flourishing dairy industry in Pakistan, which is already moving toward modernization, as well as the rising demand for edible oils backed by evolving consumption patterns and a growing market for animal feed driven by sustained progress made by the poultry industry in Pakistan.
Cargill’s proposed investments will support Pakistan’s overall economic development and contribute to local employment.
The visiting delegation informed the Prime Minister that M/s Cargill intended to invest in Pakistan as back as 2012 but were discouraged by mismanagement, corruption and non-availability of level playing field during the previous governments. However, investor’s confidence has restored after the incumbent Government and the policies being pursued by it.
The prime minister welcomed investment plans of M/s Cargill in the area of agriculture development, import substitution and enhancement of agricultural products.
He highlighted the efforts of the government towards ensuring transparency, providing the business community with level playing field and improving ease of doing business in the country.
The PM assured the delegation full support from the government.
#Pakistan Home #Appliance Maker Dawlance Manufactures Its 10 Millionth Unit. Company makes #Refrigerators, #Freezers, #AirConditioners, #Microwave Ovens, Built-in #Ovens, #WashingMachines, Water Dispensers, #Dishwashers, and small #kitchen appliances. https://www.oyeyeah.com/news/dawlance-manufactures-its-10-millionth-unit/
The market-leader in Pakistan’s Consumer-Electronics and Home Appliances market – Dawlance has now achieved another huge milestone, by manufacturing its Ten Millionth unit. Completing its 40 years of excellence, this enterprise is a fully owned subsidiary of Arçelik A.S. – The largest Turkish enterprise and the third-largest manufacturer in Europe.
The Chief Executive Officer of Dawlance – Mr. Umar Ahsan Khan stated that: “Dawlance is the biggest Turkish investment in the economy of Pakistan. Producing its 10 millionth Unit is the strongest evidence of the brand’s reliability. It is an unforgettable moment for us as we enter this new era of consumers’ confidence. The company is thankful to its over 4000 employees, our consumers, stakeholders, distributers, and dealers all over Pakistan, along with everyone else who contributed to the success and growth of the company.”
The Head of Production at Dawlance – Mr. Ameen Ahmed expressed his delight and said; ”We have come a long way since the company’s humble beginning, back in 1980, when a small assembly plant was established in Hyderabad. Today, the company has grown tremendously, operating 3 large-scale manufacturing units in Pakistan. The 10 millionth product is a testament to our passion and commitment, to strengthen Pakistan’s industrial-base and economy.”
Through this resourceful collaboration, the most reliable brand has been established, to offer the highest quality electronics and services to Pakistani consumers. Our most innovative technologies also promise the conservation of energy. Being a socially responsible organization, it generously contributes towards credible initiatives for community-development and other healthy socio-cultural activities, to create more economic opportunities and empower its consumers.
It caters to consumers’ 3 different functions; Food Care, Fabric Care and Home Care with a wide range of appliances including; Refrigerators, Freezers, Air-Conditioners, Microwave Ovens, Built-in Ovens, Hoods and Hobs, Washing Machines, Water Dispensers, Dishwashers, and small kitchen appliances. Consumers can enjoy the ‘Grand Warranty’ on all Dawlance products sold all over Pakistan, without paying additional costs or any registration process.
All Dawlance Refrigerators and Freezers come with a 12 Years Compressor Warranty (including Inverter and non-inverter technology). All its new models of Washing Machines are covered by a 10 Years Motor Warranty.
With the continued focus on customer care and after-sales service, it always exceeds the customers’ expectations. With creating newer technologies, every employee is inspired to ensure compliance with global standards and best-practices at every level.
A nation-wide ‘After Sales network’ provides 24/7 Customer-Care, while Technical-Collaborations with Arçelik’s global plants in Turkey, Russia, Romania, Thailand, and South Africa are also nurturing expertise at Dawlance.
Dairy Sector: Time to Go All Out for Bolstering Performance
August 8, 2019
in Asia, strong output growth is forecast in the large traditional milk producers: India is expected to sustain its normal growth, while Pakistan looks set to increase production as high internal prices have stimulated investments in the sector. However, all of Pakistan’s increased production will be absorbed domestically. South America is all set to be the fastest-growing milk production region. Argentina’s milk production growth has been limited by lower returns due to large export taxes on milk products, whereby taxes are adjusted to maintain lower domestic prices. This policy-induced some milk producers to participate in national strikes and blockades in early 2008. Brazil may soon be the second largest exporter in the region, or even the largest if current trends continue over the next several years. In other parts of Latin America and the Caribbean, Mexico, one of the world’s largest importers of milk powders, will post limited milk production gains given high feed costs and a shortage of domestic available feed.
As a whole milk production in Africa is anticipated to be consistently below world average growth, showing weaker supply response to the price spike. But the United States’ dairy sector responded significantly to attractive internal and external prices in the last couple of years. However, this growth is lower than expected, due to the downturn in profitability experienced so far this year, as indicated by the milk to feed price ratio. This has limited milk yield growth and has induced higher culling of cows. In addition, the recent appreciation of the United States dollar has lowered the competitiveness of the United States’ industry on international markets compared with the situation of even a couple of years back. In Canada, higher feed costs have induced yet higher target prices, and this has limited domestic market growth; production is expected to remain stable.
#Pakistani Home Appliance Makers Begin #Exports to #EU and #African Countries
Pakistani electronics home appliances brand, Dawlance has become the first-ever company to begin exports of its products to European and African countries.
The company has upgraded its assembly plants with an investment of $60 million over the past three years to meet the high standards of different foreign markets.
This was stated by Dawlance Chief Executive Officer (CEO) Umar Ahsan Khan while talking to ProPakistani after the inauguration of a new assembly line at National Highway Karachi.
Umar Ashan Khan said that they have added two assembly lines of washing machines and water dispensers in its factory. The main objective is to export these appliances in different markets along with meeting the demand of the local market.
The company has obtained a special certification for manufacturing water dispensers to meet EU standards. These products are being exported to EU countries through Turkey. So far, the first consignment of 5,000 dispensers has been exported to Turkey and nearly 5,000 units will be sold in the international market by the end of this year. Whereas our other products, such as washing machines, are being exported to Africa and Middle Eastern Countries, he added.
Mr. Khan continued that Dawlance washing machines are in high demand in Africa because they are more affordable and energy-efficient.
Low Voltage Appliances To Be Introduced
In order to meet the demands of the significant population living off-grid, Dawlance is the first company to start production of low voltage appliances including washing machines, refrigerators, and air-conditioners in the coming months.
CEO Dawlance said:
Dawlance has planned to introduce DC current washing machines which will be operated on solar panels. This will make a difference in the lives of people living in the rural areas of the country. Due to current economic conditions, the sales of home appliances is declining but we are optimistic that the documented economy will bounce back with certain tax measures. With the government’s tax measures now everyone is being registered in the tax system , which will provide us a level playing field.
Dawlance was established in 1980 by Bashir Dawood. Its first refrigerator assembly plant was established in Hyderabad Sindh. The brand captured a significant share in the local market and ultimately attracted foreign investors’ attention. In 2016, Dawood Bashir sold Dawlance to Istanbul based Arçelik.
#Pakistan #Export Of #Engineering Goods Jumped 176.72% In July to $39.223 million, up from $14.174 million exports recorded during the same month of last year, according to the State Bank of Pakistan. - UrduPoint https://www.urdupoint.com/en/business/export-of-engineering-goods-increase-17672pc-701107.html#.XWmtA9QBLpY.twitter
The export of engineering goods from the country during the first month of current financial year 2019-20 increased by 176.72 percent against the corresponding month of last year.
During the month of July, 2019, the export of engineering goods were recorded at $39.223 million as against $14.174 million exports recorded during the same month of last year, showing growth of 176.72 percent, according to the data issued by the State Bank of Pakistan.
The engineering commodities that contributed positively in external trade included electric fans, export of which grew from $2.614 million last year to $3.428 million during the period under review, showing growth of 31.14 percent, the data revealed.
The exports of transport equipment grew by 5,874 percent from $0.415 million to $24.794 million while the exports of other electrical machinery also increase by 21.37 percent from $2.115 million to $2.567 million.
Moreover, the export of auto parts also increased by 45.93 percent from $1.365 million to $1.992 million.
Meanwhile, the engineering commodities that witnessed negative growth in external trade included export of machinery specialized dipped by 20.97 percent from $2.727million during the period under review to $3.451 million same month of last year, whereas the export of other machinery also decreased by 11.84 percent from $3.715 million to $4.214 million, the data revealed.
#Pakistan's Dawlance introduces new cooling #technology to store #EidAlAdha #meat for longer periods with #freezer sales spiking. #EidulAzha #refrigerator #appliance https://enews.hamariweb.com/lifestyle/dawlance-introduces-hybrid-cooling-technology-in-new-refrigerator-series/
Dawlance introduces Hybrid Cooling Technology in New Refrigerator Series that provides the longest cooling retention for upto 6 days
Karachi: 20th July, 2020. The leading manufacturer of innovative home-appliances – Dawlance has further enriched its latest series of refrigerators, with the advanced “Hybrid Cooling Technology” that promises to provide longest cooling retention for up to 6 days. This helps to extend the life of frozen food items and as result provides longevity of life to food items; especially with the Eid ul Adha season approaching it will be able to provide additional value to our consumers.
Since Food-Preservation has now become a necessity, as the lifestyle in households have become much busier there is awareness among the consumers about the concept of food-security, as socio-economic pressures have increased. Every family must take conscious measures to reduce food-wastage. Fortunately, modern technology of Dawlance has provided this solution to meet the evolving needs of the society which aids in reducing food wastage & curb food scarcity on a bigger scale.
In Pakistan where load-shedding and power-outages are a daily occurrence, especially during summer’s season therefore food preservation becomes a major problem in the country.
The Director Sales and Marketing at Dawlance – Syed Hasan Jameel stated that: “Food-wastage is a global concern now and our research indicates that the masses are more aware of the concept of food-security. So, our new range of products will prevent food-wastage despite the frequent power outages in Pakistan.”
Along with the Hybrid Cooling Technology, Dawlance has also introduced 2 other core technologies within its previously launched new refrigerator series, that reflect; “Innovation inspired by nature”. These include; the ‘Nature Lock Technology’ that keeps fruits and vegetables fresh for up to 20 days and the ‘Vitamin-Fresh Technology’ that preserves vitamin A and C for longer durations. Dawlance is a wholly-owned subsidiary of Arçelik – the largest enterprise in Turkey and the 3rd largest manufacturer of home appliances in Europe. It is renowned for extensive research and highly-responsive Customer-Care based on multinational standards and a global vision to produce the highest level of quality.
#Turkish firms to set up #industrial units in #Pakistan to considerably increase #trade and #investments, especially in #transport, #telecommunications, #manufacturing, #tourism and other industries. #economy https://www.dawn.com/news/1590768
Turkish delegation on Monday expressed their interest for setting up industrial units in Pakistan to start production activities to meet the needs of the construction industry, a press release issued by the Islamabad Chamber of Commerce and Industry (ICCI) said on Monday.
ICCI President Sardar Yasir Ilyas Khan briefed the visiting delegation about the potential business and investment opportunities in the country’s real estate and construction sectors.
He said that Pakistan was a big market with huge demand for housing units and commercial buildings.
He said that the current government has announced a very attractive construction package to boost construction activities in the country and it was the right time for foreign investors to explore Pakistan’s real estate and construction industry for joint ventures and investment.
He said that the Turkish investors should bring technology and expertise and set up industrial units in Pakistan to capitalise on the emerging investment opportunities in construction and other sectors that would also help in maximising economic growth and increasing exports of our country.
He assured that the ICCI would extend all possible assistance and facilitation to Turkish investors for joint ventures and investment in the country.
Speaking at the occasion, Turkey’s ADO Group President Mustafa SAK said that they have seen huge potential for investment in Pakistan and they wanted to set up industrial units to produce construction material and products to meet the needs of the local construction industry.
They said that their collaboration with Pakistani counterparts would be beneficial for both countries.
He said that Pakistan and Turkey have worked to negotiate a preferential trading agreement, aiming to considerably increase trade and investments, especially in transport, telecommunications, manufacturing, tourism and other industries and hoped that its finalisation would further increase the volume of bilateral trade between the two countries.
FrieslandCampina Engro #Pakistan launches Pakistan–#Netherlands Dairy Development Centre at University of Veterinary and Animal Science in #Lahore. Pakistan's #dairy sector is the 4th largest in the world. #DairyMilk #livestock https://www.dairyreporter.com/Article/2022/02/07/frieslandcampina-engro-pakistan-launches-dairy-development-centre#.YgE8szkss4s.twitter
Japanese dairy giant looks to enhance stake in Pakistan's NutriCo Morinaga for $56.6mn
Japanese dairy giant Morinaga Milk Industry has sent a conditional offer to ICI Pakistan to acquire an aggregate of approximately 33.3% of the issued and paid-up share capital of NutriCo Morinaga (Private) Limited (NMPL), a subsidiary of ICI Pakistan, from NMPL's existing shareholders including that of ICI Pakistan.
The acquisition is set at an aggregate price of $56.6 million which translates to approximately $2.07/- per share, said ICI Pakistan in its notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
NMPL was a joint venture between ICI Pakistan, Morinaga Milk and Unibrands (Private) Limited to locally manufacture and distribute nutritional formula products, and was recently merged with NutriCo Pakistan (Private) Limited, which was involved in the import and distribution of select products of Morinaga Milk.
The notice read that the Board of Directors of ICI Pakistan has granted an in-principle approval to ICI Pakistan to move forward with the proposed sale/ divestment of 26.5% of its shareholding in NMPL (i.e. partial divestment) to Morinaga Milk, subject to, inter alia, valuation of NMPL and the finalization of definitive agreements, to be presented to the Board of Directors for formal/final approval, if deemed fit by the Board.
ICI Pakistan has also been authorized to enter into a memorandum of understanding for the proposed transaction.
“The offer from Morinaga Milk is a testament to Morinaga Milk's confidence in the Pakistan market and the potential of NMPL to grow and cater to the growing nutritional needs of the children of Pakistan,” read the notice.
“As the owners of the ‘Morinaga' brand, know-how to manufacture the products along with its superior research & development facilities, Morinaga Milk is well-equipped to accelerate the growth of NMPL with the support of ICI Pakistan as a continuing joint venture partner (which shall continue to hold approximately 24.5% of the share capital of NMPL upon the completion of the proposed transaction),” it said.
Moreover, Moringa Milk Industry in its filing to the Tokyo Stock Exchange on Thursday said that the company has been exporting infant and toddler milk to Pakistan since 1978 and sees the South Asian country as an attractive market, boasting the fifth-largest population in the world, with continuing population growth forecast.
“Moreover, the Morinaga Milk Industry brand has gained broad recognition in Pakistan over many years through the export business, giving the Company a high chance of achieving further rapid growth in the Pakistan market.
“By acquiring management control over NutriCo Morinaga ... the company considers that it will be able to capture growth opportunities, leading to the further development of the Morinaga Milk Industry brand infant and toddler milk business in Pakistan and contributing to the growth and health of the consumers of the Company products,” it said.
Back in 2020, NutriCo Morinaga (Private) Limited commenced commercial operations of growing-up formula products at its manufacturing facility in Sheikhupura, Punjab.
At a cost of Rs5.5 billion, the manufacturing facility was the first asset investment by a global Japanese dairy and food company in Pakistan.
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