Lucky Motor Corporation (LMC) has entered into an agreement with Samsung Gulf Electronics Company, FZE to manufacture Samsung mobile devices in Pakistan.
In a stock filing on Friday, Lucky Cement Limited (LCL) said that its subsidiary, LMC, which currently operates and specializes in the production, assembly, marketing, distribution and sales of Peugeot vehicles, Dawn reported. Engaged in business, has begun the process of seeking the necessary regulatory approvals.
It has applied to the Pakistan Telecommunications Authority (PTA) for a license.
The production facility for making Samsung mobile devices will be located at LMC’s existing plant where vehicle production is underway at the Special Economic Zone Bin Qasim Industrial Park.
The production facility is expected to be completed by the end of December this year.
Lucky Cement said further details on the amount to be invested in the production facility and capacity over time between Samsung and LMC will be discussed.
The Engineering Development Board (EDB) approved the Mobile Device Manufacturing Policy (MDMP) in 2020 and so far 21 companies have been given the green signal for mobile phone assembly from March to June 2021.
Asked about the production of Samsung mobile phones after the completion of the production facility by December 2021, an official of Lucky Cement Limited said on condition of anonymity that the company would start manufacturing mobile phones as soon as the production facility is ready. Will
Regarding the development of specific models, he said, “A wide range of models will be developed here.”
“It’s still being worked on,” he said of the overall investment and job opportunities in the mobile phone project.
Syed Atif Zafar, CFA, Topline Securities, said the investment volume is said to be کروڑ 100 million (Rs. 16.50 billion), where the need for cash in investments is not a major concern.
He expects the project to generate about ً 300 million to کروڑ 600 million in annual revenue and a net profit of سے 1.5 billion in the early years of the project.
The government is also providing duty protection to the industry through its mobile device manufacturing policy, which could potentially reduce the prices of locally made mobile phones by up to 50 per cent.
He said the plant would be set up in a special economic zone that would provide tax relief to the project.
Lucky Group owns 71.55% of LMC and expectations are high for this new project as Lucky Cement has been very successful with its recent initiatives.
He said that Samsung had set up an assembly plant in Bangladesh in 2018 which has been hailed as a great achievement.
Samsung currently manufactures 95% of the Samsung mobile phones sold in Bangladesh with an annual production of about 2.5 million units.
Atif Zafar said that the annual mobile phone market in Pakistan is estimated at 45 million units, with the country importing 32 million units and producing 13 million units locally.