Lucky Motor Corporation, a subsidiary of Lucky cement has executed an agreement with Samsung Gulf Electronics for the manufacturing of Samsung mobile phones in Pakistan.
This was officially revealed when Lucky Cement Corporation sent an official notice to the Pakistan Stock Exchange. Lucky Cement owns 71.55 percent of LMC, and expectations are high for this latest venture as Lucky Cement has been hugely successful with its recent initiatives like bringing KIA (another South Korea based company) to Pakistan to assemble automobiles and acquisition and then the turnaround of ICI Pakistan (ICI), amongst others. Samsung had setup an assembly plant in Bangladesh in 2018, which has been termed a huge success.
The production facility of Samsung will be built at a Special Economic Zone which will ensure tax exemption. The plant is expected to be completed by the end of 2021.
Syed Atif Zafar, Director Research and Chief Economist at Topline Securities while commenting on this initiative said “The investment size is rumoured to be around $100 million (Rs16.5 billion), where we believe cash requirement for the investment is not a major concern,” . LMC is expected to generate an average EBITDA/year of Rs15 billion over next two years from its auto assembly plant, he added.
21 new companies had been authorised to start local manufacturing/assembly (vivo, Airlink, Inovi, telecom, OPPO) boosting the local industry of the mobile handsets for domestic market and exports.
