Re: PML-N is winning Elections 2018
Friesland Campina targets market in Pakistan
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Dutch Dairy Giant Friesland Campina has acquired 51 % of** Engro Foods Limited**, the second largest dairy producer in Pakistan. It enables the company to take a major leap forward in Central Asia.
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Shift to packaged dairy**
Pakistan is the third largest milk-manufacturing country in the world, with 38 billion liters on an annual basis. Friesland Campina 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 Friesland Campina expects that to change in the near future.
“Thanks to this well-organized and very successful company, we have obtained a strong position in the Pakistani dairy market. A 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.
“This is a very important event for us. Engro Foods has been very successful ever since its launch in 2006 and has since become one of the most respected companies in Pakistan. Our FrieslandCampina collaboration will definitely have a huge impact on the dairy value chain in Pakistan and will also enable Engro Foods to present the consumer with additional value thanks to an improved product range, while it will also help improve our innovation levels", Engro CEO Babur Sultan added.
Turkish company to acquire Dawlance for $258 million
By Kazim Alam
Published: July 1, 2016
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The new product aims to cut down energy usage and is part of the company’s initiative of designing products that help conserve energy. PHOTO: FILE
KARACHI: Turkish company Arcelik has said it is going to acquire Dawlance, a privately held Pakistani manufacturer of consumer durables, for $258 million.
The deal is likely to be closed by the end of 2016, as it requires approvals from competition authorities, purchase of minority stakes and transferring of land and buildings to the ownership of the company, it said.
When contacted by The Express Tribune, Dawlance General Manager for Sales and Marketing Hasan Jameel said he could neither confirm nor deny the deal.
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Earnings snapshot**
Dawlance manufactures white goods – which are consumer durables like refrigerators, freezers, air conditioners, microwave ovens and washing machines – in three factories and sells them in local and foreign markets.
Dutch company to buy Engro Foods for around $460 million
Financial accounts of Dawlance are not public because of its private-limited status. However, according to the earnings details Dawlance has provided to Arcelik, it had revenues of $220.6 million in 2015. Similarly, its (adjusted) earnings before interest, tax, depreciation and amortization (EBITDA) amounted to $45 million (roughly Rs4.5 billion) last year. Its net debt amounted to $30 million at the end of 2015, according to Deutsche Bank.
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Reason for sale**
Although Jameel refused to entertain any questions with regard to the sale of Dawlance, sources close to the sponsors of Dawlance say the company had been on the auction block for the last five years.
Majority shares of Dawlance are owned by Bashir Dawood. He is Hussain Dawood’s brother-in-law, a corporate titan who controls majority shareholdings in HUBCO, Engro and Dawood Hercules groups.
Mobilink completes acquisition of Warid Telecom
Sources say the owner of Dawlance wanted to permanently move abroad. His children have established careers in fine arts and interior designing in Europe and the Middle East and apparently have little interest in managing the family business.
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Market share**
There are four major players in Pakistan’s white goods market, namely Dawlance, PEL, Haier and Orient. Waves and Kenwood are relatively smaller players, albeit with significant shares in some segments of the durables market.
The microwaves segment is completely dominated by Dawlance in Pakistan with the company controlling about 70% market share, according to market sources.
Dawlance is also the single largest player in the refrigerator segment with up to 45% market share.
In air conditioners, however, Haier owns the largest market share (40%). Dawlance is a relatively small player in this segment with about one-tenth of the market share.
Dawlance boasts of having one of the widest dealers’ networks and after-sale networks in Pakistan. It has 37 branches in addition to 750-plus franchises across the country – a fact that distinguishes it from most of its competitors.
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Web of companies**
Dawlance operates through a complex web of subsidiaries in order to minimise its tax expense, inside sources say.
For example, a group company registered by the name of United Refrigeration Industries manufactures goods and then ‘sells’ to another subsidiary that either sells it onwards to local dealers or exports the durables.
Similarly, another company of the group by the name of Dawlance Real Estate owns a number of properties that are eventually rented out to other companies of the Dawlance group.
These roundabout transactions within the group companies help save dealers in terms of taxes, sources say, thus leaving the dealers with wider profit margins to pocket.
Koi punjab goverment se poochay yeh billions kharch karnay ka koi faida? According panchi pai 20% of this expense goes into the pockets of pml(N) leaders is the only net advantage of these useless projects like 'sasti roti, lap top schemes, yellow cab etc etc…Only sufferers are minor provinces who are deprived of funds for the projects needed for providing basic necessities.
