Service Global Footwear enters into Rs1 billion JV with Chinese Golden Star Footwear for non-leather footwear

Service Global Footwear Limited (SGFL) has entered into a joint venture agreement with Golden Star Footwear Group Limited, a Chinese company, to establish a manufacturing and export project for non-leather footwear in Pakistan. The agreement was approved in a board meeting held by SGFL on January 20, 2026, the company said in a filing at the Pakistan Stock Exchange (PSX) on Wednesday.

Under the joint venture, SGFL will hold a 51% equity stake, while Golden Star Footwear Group will retain 49%. The new venture aims to enhance Pakistan’s footwear manufacturing sector and increase exports.

The two companies have agreed to incorporate a new Joint Venture Company (JVC) to manage the project, subject to approval by the Securities and Exchange Commission of Pakistan. The investment in the proposed JVC will amount to up to Rs. 1,000,000,000 (Rupees One Billion) over the next five years, with investments being made progressively, subject to shareholder approval.

“The proposed joint venture will bring significant benefits to Pakistan’s non-leather footwear industry,” said the board in a statement. “The equity stake of the parties in the proposed Joint Venture Company will be 51% for SGFL and 49% for Golden Star Footwear Group.”

Additionally, SGFL will lease its land located at Muridke, Punjab, including a building, to the joint venture for a one-year period. “The lease of the building shall be subject to the prior approval of the shareholders of SGFL, as required under Section 183 (3) of the Companies Act, 2017,” the board noted in its disclosure.

This partnership underscores SGFL’s efforts to expand its production capacity and strengthen its footprint in the international footwear market while fostering foreign investment in Pakistan's growing manufacturing sector.