Waves Home Appliances Limited (WAVESAPP), a Pakistani manufacturer of home appliances, has received a proposal for strategic alliance/JV (joint venture) from a global appliances player.
The listed company, formerly Samin Textiles Limited, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday. However, WAVESAPP did not disclose the name of the foreign company.
“Following improvements in the economic conditions of the country, the company has received an intention for strategic alliance/JV from a foreign global player(s),” read the notice.
The company said it has initiated discussion to develop a comprehensive business model that covers among other things, provision of technical know-how, engineering personnel, use of their brand name by the company in domestic as well as in export markets, management sharing structure and the amount of investment to be brought in.
“Formal agreement will be signed on finalisation of these discussions,” informed the company.
WAVESAPP said the primary benefits to the company from this alliance will be access to advanced technology, expertise and know-how to enhance its product quality, cut down production costs, and implement technical and operational best practices, along with the ability to procure cheaper materials.
“This will give the company competitive edge in local as well as international markets,” it said.
Meanwhile, the foreign partner will benefit from “cheaper labour and freight cost savings from Pakistan, which will give a competitive edge in Middle Eastern, African and European markets”.
Incorporated in Pakistan on November 27, 1989 as a public limited company, under the companies ordinance, 1984, the principal line of business of WAVESAPP include designing, manufacturing, processing, assembling, distribution, trading, repairing, reconditioning, importing, exporting, buying, or dealing in all kinds of domestic consumer appliances and other light engineering products.