KARACHI: Turkish company Arçelik A.S., which announced earlier this year that it was buying Pakistan’s home appliances brand Dawlance, said on Tuesday it has obtained all regulatory approvals needed for the $243-million acquisition and the transaction is now complete.

The share transfer was completed on Nov 2, Arçelik, one of the key players in the global home appliances industry, said in a statement.

Addressing a media briefing, Arçelik CEO Hakan Bulgurlu said the company plans to invest $42m to $50m in its Pakistan’s operations “in the immediate future”.


Plans to invest up to $50m in the near future


The acquisition made sense because Pakistan offered a “very, very strong possibility of future growth”, Mr Bulgurlu asserted, and described the deal as “a significant milestone that consolidates our growth strategies in the region”.

Elaborating, he said Pakistan has a population of nearly 185m people but the penetration of home appliances remained low. This means the Turkish company would have a lot of room to grow, he hoped.

With the latest acquisition, Arçelik now has 11 brands and 18 manufacturing facilities in seven countries including Turkey, Russia, Romania, China, South Africa, Thailand and Pakistan, he said. Overall, it operates in 130 countries, manages 11 core brands and employs 30,000 people across the world.

The acquisition is part of Arçelik’s larger plan to grow its business in Asia as it sees European markets — where it’s the third-largest player in its industry — reaching saturation point for white goods.

“Now that Dawlance is part of Arçelik, we will have even stronger scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” he said.

Dawlance, established in 1980, has been a major household appliances maker in Pakistan and sells refrigerators, freezers, air conditioners, washing machines and microwaves. It remains a privately owned company and has two manufacturing sites in Karachi and one in Hyderabad.

Arçelik is owned by Koç Group, one of Turkey’s largest industrial conglomerates.

Mr Bulgurlu, who said he was impressed with the broad skill set of the people in Pakistan, hoped that after Arçelik’s acquisition more Turkish companies will follow suit. “The level of English in Pakistan is better than Germany,” he said.

“We’re excited about the potential that Pakistan has to offer. We believe in this country,” he said. “Pakistan’s economy is set to grow in the next three to five years. We want to be ready for that.”

Published in Dawn, November 16th, 2016

Opinion

Window of opportunity
05 Mar 2021

Window of opportunity

How do we ensure growth revival built on a sustainable, efficient and stable foundation?
March for freedom
Updated 05 Mar 2021

March for freedom

Those demanding ‘azadi’ are moving society forward.
More of the same
Updated 04 Mar 2021

More of the same

Civil society groups and political parties tend to treat their paid employees as casual labour.

Editorial

Ravi project
Updated 05 Mar 2021

Ravi project

THE assault by an enraged group of farmers on a provincial revenue team assigned to acquire land for the...
05 Mar 2021

Climate change

PAKISTAN received much less rainfall in January 2021 as compared to previous years, making it the 17th driest month...
05 Mar 2021

Antimicrobial resistance

WITH the focus on Covid-19, many health issues, though otherwise recognised as serious medical problems, tend to be...
04 Mar 2021

Senate upset

THE Senate election results have delivered a stunning blow to the PTI. While the ruling party has seen an increase ...
ME ‘security pact’
Updated 04 Mar 2021

ME ‘security pact’

THERE has been an overflowing of bonhomie between the Gulf Arabs and Israel over the past few months, much of it...
04 Mar 2021

Students’ protest

A GROUP of university students in Karachi and Hyderabad caught the media’s attention when they announced a...