Lucky Motor Corporation Limited, which is a subsidiary of Lucky Cement Limited, has announced that it is looking to bring Samsung to Pakistan and manufacture the company’s smartphones.
The company is currently manufacturing and selling Kia cars mainly. Kia is a South Korean company, so is Samsung.
According to a notification, LMC has recently entered into an agreement with Samsung Gulf Electronics Co., for producing Samsung branded mobile devices in Pakistan.
“In pursuance of this transaction, LMC has also initiated the process of seeking necessary regulatory approvals to carry on the said business and in this endeavor,” read the notification.
Muhammad Rizwan, the president of the Karachi Electronics Dealers Association who also has stakes in the retail business of mobile phones, says one can expect a 10% to 15% decrease price of Samsung cell phones after local assembling begins.
He said that companies will get incentives from the government if they start manufacturing in the country.
“There’s a huge demand for mobile phones in the country,” he said. “The companies manufacturing mobile phones in the country will get an edge over others as they will get incentives on duties and taxes.”
Rizwan, who has an office in Pakistan’s biggest mobile phone market in Karachi, says there’s demand for mobile phones from Afghanistan as well as Iran.
LMC has filed an application with Pakistan Telecommunication Authority (PTA) for securing the license. The production facility for producing Samsung mobile devices will be located at LMC’s existing plant facility producing vehicles at Bin Qasim Industrial Park, Special Economic Zone in Port Qasim, Karachi.
The production facility is anticipated to be completed by end of December 2021.
The company has not announced the amount to be invested in the company and its capacity of producing mobiles.
Seven months ago, Chinese smartphone maker Vivo also announced its plan to establish manufacturing facility in Pakistan. Q-Mobile, G-Five, Infinix, and Tecno among other companies are already manufacturing mobile phones in Pakistan.
Lucky Cement’s stock price rose by Rs21 during the day from Rs889 to Rs911 by the time this story was filed.