Haleon Pakistan is placing a large bet on Jamshoro. In a material disclosure, the company said it would invest about $10 million at its Jamshoro manufacturing facility to produce its Panadol base portfolio, including Panadol 500mg and Panadol Extra tablets. The investment will also go toward upgrading technology and increasing Panadol production capacity to 8.0 billion tablets. The company also disclosed an additional $2 million investment to enhance the production of CaC-1000 Plus, citing both domestic demand and export opportunities. This total $12 million outlay is being framed as more than routine capacity maintenance. In Pakistan’s volatile pharmaceutical supply environment—where import constraints, FX shortages, and periodic disruptions in raw material availability can quickly translate into stock-outs—greater local production of a mass-market brand like Panadol is a strategic hedge. It also builds “surplus” capacity that can be directed abroad when local demand is adequately served.
Sell-side analysts at Chase Securities argue the Jamshoro shift is central to Haleon Pakistan’s margin story. Their thesis is that moving Panadol production from outsourced (“toll”) manufacturing to in-house production structurally lowers the cost of goods sold, improves gross margins, and adds operating leverage as volumes rise. In other words, Jamshoro is not only a factory expansion; it is a re-wiring of Haleon Pakistan’s cost structure and export readiness. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
