Waves Home Appliances Limited (WAVESAPP) has announced its plans to form a strategic alliance and joint venture (JV) with a global appliances player.
The company disclosed this development to the Pakistan Stock Exchange (PSX) through a notice on Monday. This move follows a recent carve-out of its appliances business from the holding company to focus on growth and expand its market presence.
“Following the improvements in the economic conditions of the country, Waves Home Appliances Limited has received an intention for strategic alliance or joint venture from a foreign global player(s),” read the notice.
Accordingly, the company has initiated discussions to develop a comprehensive business model that covers among other things, the provision of technical know-how, engineering personnel, use of their brand name by the company in domestic as well as in export markets, management sharing structure and the amount of investment to be brought in.
The company said that a formal agreement would be signed on finalisation of these discussions.
The primary benefits to Waves Home Appliances Limited from this alliance will be access to advanced technology, expertise and know-how to enhance its product quality, cut down production costs, and implement technical and operational best practices, along with the ability to procure cheaper materials.
This will give the company a competitive edge in local as well as international markets. The foreign partner, taking advantage of cheaper labour and freight cost savings from Pakistan, will have a competitive edge in Middle Eastern, African and European markets.
