Syed Babar Ali wants to buy Akzo Nobel. When the news broke that the Dutch paint manufacturer was wrapping up its operations in Pakistan, many were alarmed by the departure of yet another multinational player from the Pakistani market. The exit comes hot on the heels of Procter & Gamble’s exit and similar decisions by Shell and others in recent years. The interest of the Packages Group in acquiring the paint company was a small silver lining.
The Packages Group, after all, is one the oldest and cleanest companies in Pakistan. Over the decades Syed Babar Ali has turned it into a massive conglomerate with an impeccable reputation for doing everything above board.
That reputation is exactly why he should not touch Akzo Nobel with a ten-foot paint roller.
You see, while many might be dismayed over the exit of another multinational from Pakistan, those in the paint business will tell you the exit was a long-time coming. And while the weight of economic stress and policy paralysis have added to the cracks in the paint industry, the bigger problem has been a swelling informal market in an industry that has increasingly become difficult to stay clean in. 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
Informal sector of any industry not only avoid taxes and compromise on quality and price but also take major chunk of formal sector industry this making it impossible for the formal sector to compete.