CPEC: Duty-Free Imports of vehicles from China eating into local assemblers’ share!

[Kaniska]

It is okay guys...China and Pakistan relationship is more at statergic level...So this kind of small issues will be treated as collateral damage.

 

[RealNapster]

True! But again, you will be competing with the Chinese in that area.
outside of areas where Pak has an expertise, say textiles, cement and sports equipment, future focus has to be on regulated markets and areas where Chinese don't do well. ESP ones that have high level of IP protection. That's why I suggested Pharma. The US generic market is dominated by India purely because it is a "safer" bet than china in terms of quality and IP protection. China dominates the non regulated market nonetheless.

Also services. The advertising and creative talent in Pakistan is quite good, but underdeveloped. "Creative outsourcing" has become the norm, esp in advertising and online gaming. Those are definitely areas where Pakistan can have an edge, though india has been well established in the area for a while. But the creative industry is never ending and economy proof just like Pharma. Hence focus should be on such sectors.

Let's not forget that Pakistan unlike India has not fully utilized the English language advantage. There is a lot of room to grow and the ceilings are high.
Improved relations and trade with India are beneficial to both countries.

Forget about these things. even an Investment of 1 billion dollars in Halal food items can increase our exports to 700-800 million dollars Per year.
Only by exporting meat to Middle east, and China, we can easily make 400-500 million dollars as Middle east is a huge market for Halal meat. and don't forget America. which again is a huge market.

 

[Peshwa]

Forget about these things. even an Investment of 1 billion dollars in Halal food items can increase our exports to 700-800 million dollars Per year.
Only by exporting meat to Middle east, and China, we can easily make 400-500 million dollars as Middle east is a huge market for Halal meat. and don't forget America. which again is a huge market.

Very true! Didn't even think of that!
How easily we tend to forget that the Islamic market itself is a billion strong consumer market.
The only issue with consumables I see is very high standards and SOPs are required to ensure quality and dominate market share. But the opportunity def exists if approached methodically.

 

[RealNapster]

Very true! Didn't even think of that!
How easily we tend to forget that the Islamic market itself is a billion strong consumer market.
The only issue with consumables I see is very high standards and SOPs are required to ensure quality and dominate market share. But the opportunity def exists if approached methodically.

Thank God things are moving in a good direction. last month a slaughter and meat processing unit was inaugurated in Karachi with a total initial investment of 75 million dollars only. and they are very very confident about touching 160-200 million dollars export target next year.

https://tribune.com.pk/story/129672...ences-commercial-operation-meat-export-plant/

The plant is currently serving the GCC region (Kuwait and UAE) and China, and is in the process of obtaining formal approval for export of meat to Russia, MENA region and Central Asia.


Iran has given approval, while approvals from Saudi Arabia, Malaysia and Russia are in the pipeline. “We are confident that all these countries would approve during the years 2017-2018,” he said.

“The volume of sales of halal meat stands at $300 billion. Pakistan’s share in this is almost nil,” he said.


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THE EXPRESS TRIBUNE
> BUSINESS
Meat, dairy and power: Exploring other options, Fauji Fertilizer expands business
By Saad Hasan
Published: December 9, 2014
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Many Pakistani businesses have ventured into the meat market, considered to be very lucrative and long ignored. STOCK IMAGE

KARACHI: Fauji Fertiliser Bin Qasim (FFBL), the producer of di-ammonium phosphate, would enter meat, dairy and power businesses with an estimated investment of over Rs33 billion, it said on Monday in a notice to the stock exchange.

The company, which saw profit from the core fertiliser business fall due to gas shortage and increase in its price, has incorporated wholly-owned subsidiaries of Fauji Meat, Fauji Foods and Fauji Power for the purpose.

“They are following the Engro model. Margins are down in the core fertiliser business so it’s better to diversify,” said Shahid Ali, Head of Research Summit Capital.

Project cost for Fauji Meat Limited is estimated at Rs6.4 billion. FFBL said financing would be arranged in the first half of 2015 and production would start later in the year.

The money will be used to build an abattoir for slaughtering animals and selling meat in local and foreign markets.

Many Pakistani businesses, including Engro, have ventured into the meat business, considered to be very lucrative and long ignored. Pakistan exported $230 million of meat and meat preparations in 2013-14, a 9% rise over the previous year, according to the Pakistan Bureau of Statistics.

But the export of about 74,000 tons constituted just a fraction of the 2.5 million tons of beef and mutton produced in the country, said the Economic Survey of Pakistan.

FFBL said Fauji Foods was conducting market research and feasibility studies to gauge various opportunities in the dairy sector.

Other ventures

Last month, FFBL announced it was considering acquiring up to 24.9% shares in Noon Pakistan Limited, the makers of Nurpur butter and milk products. Noon, which also makes UHT flavoured milk, pasteurised milk, juices and cheese, saw production go down in the last three years. From a peak of 43 million litres in 2011, it processed just 21 million litres in 2014. It has also been incurring net losses for the past two years.

Despite repeated attempts, no one from the company was available for comments.

The most substantial investment of $265 million goes into building a 118-megawatt coal-fired generator near FFBL’s fertiliser plant in Bin Qasim.

FFBL Power, as it would be called, has already approached the power regulator to determine the plant’s tariff. It is also in talks with K-Electric for the sale of electricity.

It would secure necessary financing in the second half of 2015 and planned to commence operations in the first half of 2017, it said.

Like all other producers, the core fertiliser business of FFBL has taken a hit due to gas supply curtailment and increase in its price. Fertiliser companies use gas both as feedstock and fuel. In the nine months to September 2014, FFBL booked a net profit of Rs1.77 billion, down 46% compared with the same period of last year.

Ali said FFBL’s profit margin had been stagnant. “In fact, it is no longer paying dividends like it used to do. Diversification will help the company cope with this problem.”

FFBL did not comment on the story.


https://tribune.com.pk/story/803725...er-options-fauji-fertilizer-expands-business/

 

[Logicaldude]

Competition is good. If Pakistani assemblers are not competitive they have to become competitive or move out.

But then why tax free guarantted returns monopoly in CPEC good?

Contradiction.

 

[Peshwa]

Thank God things are moving in a good direction. last month a slaughter and meat processing unit was inaugurated in Karachi with a total initial investment of 75 million dollars only. and they are very very confident about touching 160-200 million dollars export target next year.

https://tribune.com.pk/story/129672...ences-commercial-operation-meat-export-plant/

excellent news! Wish you all more successes in the future.
My only hope is that meat processors don't take the "Chinese" route and cut corners to improve margins.
Make this like the Shan Masalas of Pakistan..consistently good quality!

 

[RealNapster]

excellent news! Wish you all more successes in the future.
My only hope is that meat processors don't take the "Chinese" route and cut corners to improve margins.
Make this like the Shan Masalas of Pakistan..consistently good quality!

Thank You. and InshAllah.

 

[Valar Dohaeris]

Islam

In a just world, such kind of posts would have been deleted or at least given negative ratings.

 

[marbella]

I love the line:

On the other hand, healthy competition is always a good thing.
Recently I saw a news about a chambers of commerce meeting where they were lamenting that the Chinese imports will ruin the local industry.
I believe it is a genuine concern. On the other hand, a lot of our industries export good to other countries. Our leather products, surgical instruments, cutlery, sports goods, Chonsa mango, rice are doing great business despite competition from China & India in the world market.
If we overcome the energy shortage due to Chinese investment. Our industries will produce 4 times their current capacity. Cottage industries in cities like Gujranwala, Gujrat, Sialkot, Wazirabad will start booming again. People of these cities already know how to install plants at home and produce things. These plants were mostly shut down because of energy crisis.
In short, I suppose our industry won't go under. Instead, there's a strong probability it will start flourishing.


Dude... forget ready to eat biryani... our biscuits are awesome, and we export boatloads to the Middle East. BTW Biryani will be too complicated but I've been thinking about a ready to microwave omelette recipe lately. Maybe that too will do

All the best bahi. I need it badly. microwave omlete.

 

[Kompromat]

FAW and Foton are relocating to Pakistan.

 

[BRAVO_]

i would really welcome the import of cars in to Pakistan because such competition is necessity of time ... hell at earth local manufacturer are selling a car like Suzki Mehran aka Maruti in about 650,000 i.e 23000 dirhams and in such price you can buy a decent car in other part of world. to break the monopolistic control of these few manufacturer it is good to allow the import of cars, besides that govt should spend its time to control the tax envision which is causing the true loses of billions and billion every year. rather than blockages and bans on every thing

 

[Cookie Monster]

It is just as hilarious seeing you dismiss it all without thinking about it properly

We r not dismissing it without thinking about it. If it truly was a threat to Pak Vehicle manufacturing industry we would be concerned.

Perhaps u should read up more on the so called "Pakistani vehicle manufacturing industry". It's nothing but a sham. Just a way for our politicians and their favorites to fool the public and make money. At best cars are only assembled(not manufactured) in Pakistan. Then these substandard wheeled coffins(without proper safety equipment/testing) are sold to the public for a high price. Anyone with a brain wouldn't want to buy such an unsafe Suzuki Mehran or whatever but there is such a monopoly that the public doesn't have many options. In conclusion I'm only glad that these blood sucking parasites called "car manufacturing industry" in Pakistan will be wiped out by competition with China.

 

[Indus Pakistan]

In a just world, such kind of posts would have been deleted or at least given negative ratings.

Do please tell me what is wrong with my suggestion? Are you against Islam being exported to the kuffar athiest Chinese? Tell me? Even if we managed convert half of them, that's another 700 million more Muslims. Does that not tickle your tastebuds?

No offense, but you want to replace one shoddy workmanship with another?

How wrong you are. My brother is a bit of 'shopper' and always looks out for good deals. Me, I just go and buy a known branded product and that's it. I don't experiment. He bought a Chinese phone and when he told me paid nearly £700 I nearly fell of the chair. That is Iphone territory not Chinese cheap copy territory. Huawei Mate 9 and when I saw it honestly it was fabulous piece of electronics and felt every bit as good if not better then my Iphone. Look at it this way - I am converted. My next phone is going to be Chinese or maybe Samsung.

Shoddy?

http://www.pcadvisor.co.uk/review/s...buy-huawei-mate-9-on-sale-uk-pricing-3648753/

Last year my brother bought a Chinese TV. Not for the bedroom or anything. He bought it as the centre piece of his lounge. It was a Chinese Hisense 65inch smart TV curved and cost him about £800. I had paid £100 more then that during the earlier - during Christmas Sales for a 55 Smart (not curved) LG TV. Honestly his TV is as good as mine only it is larger and curved. I felt done in and next TV most likely will be Hisense.

I also bought direct from China BMW alloys. I was warned by some people that I ought to just buy them from BMW but my brother pushed me for the Chinese copies as he had bought some fopr his Audi and they were perfect but cost like 1/4 of the genune stuff. Any way I got my set for about £500 which would cost over £2000 from BMW. The alloys have given me no trouble. Perfect despiye some people - I went to a BMW forum to seek advice warning me about Chinese products. So I disagree. Those shoddy stuff you see is shoddy because the price you pay.

In UK we have this chain store called Poundland. Everything is on sale for £1. I bought this table and it needed assembling with Allen keys. I did not have any. I bought it from Poundland for £1 whereas in the local Wickes a branded set would have cost £10. Well that Allen key did the job although I don't think it will weather much usage but I did not need a Allen key to assemble 100 tables. Yes, that £1 set was made in China. Was it worth £1? Yes, sir it was and then some.

The reason my brother took the gamble with the Chinese TV is simple. Lot of the branded expensive products you see are also made in China. For example the iphone was made by a Chinese manufacturer under contract. Lot of those Chinese companies that supply Western branded products are now introducing generic lines and some are trying to build up brands. Thus if you know what your looking for you can get branded quality at generic prices. No doubt in a few yeas Hisense will cost a arm and leg as they become a established brand. so don't fall in that trap about shoddy quality. They used to the same thing about Japanese in 1960s/1970s, same thing for South Korean products in 1980s/1990s but look at them today.

Oh and my brother is now ordring clothes from Chinese online retailer. The prices are crazy but the styles look cool. I am waiting for the first samples to arrive then I might also buy my clothes from there. There is bit of size issue but we will see how our test specimens go.

 

[HAIDER]

but instead of importing chinese should manufacture locally. that would be more beneficial to local economy. win-win for both.

Pakistani govt and industrialist running in opposite direction . People don t know lots of condition applied before CPEC sign. Local motor industry provide jobs to thousands of people, but these companies behavior is unacceptable. Pakistan need healthy competition, but keep Chinese motor industry away from local manufacturer. Let's wait and see how govt will protect the local industry and how Japanese behave from Chinese dumping.
Plus, do we have roads to accommodate auto mania...

 

[faithfulguy]

@Shaji Pappan Good. Now what they need to do is import all, yes all heavy vehicles from China. Shut down all those money making franchises - sham rackets pretending to be industry. Shut them and be done with them.

What business? Does Pakistan even have 'heavy vehicle industry'?

Maybe China should make cares in Pakistan for the Chinese as well as the Pakistani market. Make it win-win for both countries.