Nishat Mills Ltd. the Pakistan’s leading textile company seems to venture into car assembly business in Pakistan with Hyundai.
In a letter to PSX (Pakistan Stock Exchange), Nishat Mills Ltd. conveyed that company ‘s board of directors have resolved to enter into a MoU (Memorandum of Understanding) with HMC (Hyundai Motor Company) and Sojitz Corporation in Tokyo, Japan. For negotiation and establishment of a framework to set up a greenfield project for assembly and sales of HMC vehicles in Pakistan. A copy of the letter is available with Pakistan.
The project aims to consider the assembly and sales of HMC passenger and 1-ton range vehicles in Pakistan.
The owner of Nishat Mills Ltd. Mian Muhammad Mansha is the most celebrated and richest businessman and entrepreneur in Pakistan. His joint venture with Hyundai would be another addition to his already diversified business portfolio, causing an expansion of his business.
A joint venture may also prove good for Pakistan’s automobile industry which is already struggling hard to stand on its feet, with all the major assemblers looking to pack the bags as they don’t see new opportunities for the investors. Entering into the strategic partnership with established businesses in Pakistan may bolster an automobile assembling industry in Pakistan which is already dwindling.
The new Automotive Development Policy (ADP-2016-21) that aims at facilitating the higher volume of vehicle production in Pakistan seeks to increase the vehicle production up to 350,000 till 2021. This would definitely boost the investor’s confidence in Pakistan’s automobile market and may attract the more local businesses to enter into the joint ventures with auto manufacturers.