Service Global Footwear Limited recently announced a significant strategic move. Its board officially approved a joint venture with China’s Golden Star Footwear Group Limited. This partnership aims to establish a manufacturing and sales project for non-leather shoes in Pakistan. Furthermore, the initiative includes ambitious plans for product export, signaling a new era for Pakistan’s footwear industry.
Strategic Joint Venture for Non-Leather Shoes Pakistan
This proposed joint venture company will feature a 51 percent equity stake from Service Global Footwear. Correspondingly, Golden Star Footwear Group will hold the remaining 49 percent. This balanced structure underscores a shared commitment to developing high-quality footwear. The board also proactively approved incorporating a separate joint venture company, contingent on securing necessary name approvals from relevant authorities.
Major Investment Fuels Footwear Manufacturing Growth
Service Global Footwear plans a substantial long-term equity investment of up to Rs. 1 billion into this venture. The company will disburse this investment over five years, demonstrating confidence in the project’s long-term viability. Importantly, these investments will occur periodically and require shareholder approval as per the Companies Act, 2017.
Moreover, the company intends to lease a significant land parcel, measuring 136,816 square feet. This site includes a building with a covered area of 79,760 square feet. Located at 10 km Muridke–Sheikhupura Road in Muridke, Punjab, this facility will serve the joint venture company for an initial period of one year. The leasing arrangement also necessitates prior shareholder approval, adhering to applicable corporate regulations.
Ensuring Compliance and Boosting Non-Leather Shoes in Pakistan
In conclusion, Service Global Footwear confirmed it will issue a notice for an extraordinary general meeting shortly. This meeting aims to secure all required shareholder approvals, ensuring full compliance and transparency throughout the establishment of this groundbreaking joint venture. This development promises to significantly boost local manufacturing and export capabilities, particularly for non-leather shoes in Pakistan.
