KARACHI: ICI Pakistan will set up a facility at the cost of Rs4.8 billion to manufacture Japan’s Morinaga infant formula in the country, according to a bourse filing Tuesday.
ICI Pakistan Company Secretary Saima Kamila Khan said in a notification to the Pakistan Stock Exchange that the project was expected to come online in 2018.
The announcement was well received by investors, as the company’s share price hit the upper limit of five per cent, rising by Rs30.75 to closed at Rs645.78 with a volume of 183,600 shares.
The company would set up the manufacturing facility in partnership with Morinaga Milk Industry Company Limited of Japan and Unibrands Private Limited, which is a wholly-owned subsidiary of pharmaceutical concern Searle.
“ICI’s equity stake in the proposed new joint venture is intended to be 51%. The combined equity stakes of Morinaga and Unibrands is intended to be 49%,” the notification said.
The venture would also include the distribution, marketing and sales of the locally manufactured infant formula. The Board of Directors of ICI Pakistan has in principle approved the proposed joint venture on Tuesday. However, it would be subject to regulatory approvals.
This announcement further builds on the companies’ existing collaboration. Since 2014, NutriCo Pakistan Private Limited (a joint venture between ICI Pakistan Limited, Morinaga Milk Industry Company Limited and Unibrands Private Limited) has imported, marketed and distributed Morinaga Milk Industry Company Limited products in Pakistan. The total investment of ICI Pakistan Limited in NutriCo Pakistan Private Limited currently stands at 40%.
The company secretary said NutriCo Pakistan would continue its operations of importing, marketing and distributed the Morinaga products simultaneously.
“Founded in 1917, and having had a presence in Pakistan for more than 38 years, Morinaga is a household name trusted by consumers worldwide,” the handout said.
ICI Pakistan Chief Executive Asif Jooma said in the handout that “this new venture is in perfect alignment with our strategy, and the company’s brand promise Cultivating Growth. I am pleased to see it materialised in line with plans previously set in motion.”
Courtesy : Express Tribune