The Competition Commission of Pakistan (CCP) has recently greenlit Artistic Milliners (Private) Limited’s acquisition of Tenaga Generasi Limited (TGL). This move marks a significant diversification for the textile giant.
Artistic Milliners (Private) Limited, renowned globally for its denim manufacturing, is making a strategic foray into the renewable energy sector.
Tenaga Generasi Limited operates a 49.5 MW wind power plant and was initially established in Pakistan in 2004 by a Malaysian entity aiming to capitalize on the country’s wind energy potential. Situated on 1,200 acres in District Gharo, Sindh, the project received a 20-year Generation License from NEPRA, signifying its long-term viability.
After an early exit by the Malaysian parent company in 2008, TGL was acquired by Dawood Lawrencepur Limited (DLL), which took a 75% stake, with the remaining shares held by the International Finance Corporation (IFC), a member of the World Bank Group.
The CCP’s Phase-I competition assessment identified ‘Renewable Energy – Wind Power Generation’ as the relevant market, where TGL holds a modest market share of less than 3%. Artistic Milliners’ current subsidiaries control a combined market share of 5.38%, and this acquisition will increase their share to approximately 8%. The assessment concluded that this increment would not lead to market dominance, thus approving the transaction.
The approval signifies more than just a business expansion for Artistic Milliners; it represents a growing trend of industrial giants investing in renewable energy. This acquisition not only enhances Artistic Milliners’ footprint in the wind power sector but also underscores a broader commitment to sustainable energy solutions.
The move is expected to foster advancements in renewable energy infrastructure and technology, contributing to Pakistan’s energy diversification and sustainability goals. By leveraging its robust industrial background and now expanding into clean energy, Artistic Milliners is set to play a pivotal role in shaping a greener energy landscape in the country.
This acquisition is a strategic alignment with global trends where industries are increasingly integrating renewable energy into their operations. Artistic Milliners’ venture into the wind power market is poised to enhance their business portfolio while supporting national energy objectives. The CCP’s approval marks a significant milestone, paving the way for further investments and innovations in Pakistan’s renewable energy sector.
