Lucky Cement’s subsidiary company has planned to produce mobile phones in Pakistan for Samsung by December 2021.
According to a notification submitted to the Pakistan Stock Exchange (PSX), Lucky Motor Corporation Limited (LMC) – a subsidiary of Lucky Cement Limited, which is currently engaged in the business of the manufacturing, assembly, marketing, distribution, and sales of Kia and Peugeot branded vehicles, parts, and accessories has recently entered into an agreement with Samsung Gulf Electronics Co., FZE (‘Samsung’) to produce Samsung branded Mobile Devices in Pakistan.
The Minister for Energy, Hammad Azhar, took to Twitter to announce the development, saying, “I congratulate Lucky Group and Samsung on entering into a JV to manufacture smartphones in Pakistan. These positive developments are evidence of the success of the DIRBS system that eliminated the smuggling of phones. And then followed up by Mobile Manufacturing policy last year”.
LMC has also initiated the process of seeking necessary regulatory approvals to carry on the business, and has also filed an application with the Pakistan Telecommunication Authority (PTA) to secure the license as part of this endeavour, the notification said.
The production facility for the production of Samsung Mobile Devices will be located at LMC’s existing plant facility that produces vehicles at the Bin Qasim Industrial Park, Special Economic Zone, Port Qasim, Karachi.
The production facility is anticipated to be completed by the end of December 2021. According to a report by the brokerage house Topline Securities, the investment size is rumored to be around $100 million (Rs. 16.4 billion), as a result of which LMC is expected to generate average earnings (EBITDA) if Rs. 15 billion over the next two years.
The report also said that the production facility will yield an annual revenue of $300 million to $600 million, with the project yielding net profits of Rs. 1 billion to Rs. 1.5 billion in its early years.