KARACHI: New Future Consumer International General Trading (NFCIGT), a Dubai-based multinational company, has acquired a Pakistani home and personal care product manufacturer, Zulfiqar Industries Limited (ZIL), by injecting around $6 million foreign direct investment (FDI) in Pakistan, officials and a corporate finance adviser familiar with the deal said on Friday.
The NFCIGT is an emerging global fast-moving consumer goods (FMCG) player with business development initiatives in the Gulf countries, Russia, and now in Pakistan with local partners. The company has acquired over 5 million, or 84.84 percent, shares of the ZIL, according to a stock filing on Thursday.
The ZIL, incorporated as a private limited company in 1960, manufactures and sells home and personal care products, including the famous Capri Soap, in Pakistan.
Dr. Cobus Van Rooijen, the founder and managing director of the NFCIGT, said he believed in the long-term growth potential of Pakistan despite challenges.
“Despite the challenging times, we firmly believe in the long-term growth potential of the country,” Rooijen said in a statement on Friday. “We look forward to leveraging our global experience and resources to drive innovation, create employment opportunities, and contribute to Pakistan’s economic growth.”
The NFCIGT chief said his company has prioritized Pakistan as part of its global business development strategy in the FMCG category.
“ZIL Limited has Capri as a fantastic heritage brand, which provides opportunities to expand into other personal care premium categories,” Rooijen said. “We have identified Pakistan as major investment opportunity based on demographics and anticipated consumption per capita growth in key consumer categories.”
Pakistan’s economic landscape has faced numerous challenges, including the global COVID-19 pandemic, and associated economic repercussions, followed by global commodity super-cycle given the Russia-Ukraine war, and the internal political and economic challenges.
However, the new investor remains optimistic about the long-term potential of the Pakistani market and the investment demonstrates their commitment to contributing to Pakistan’s economic development, creating job opportunities, and fostering innovation in the FMCG sector, according to the statement.
The share price of ZIL has increased by 86.6 percent from Rs181.67 per share to Rs339 since January 2023, according to the data available at Pakistan Stock Exchange website.
Alpha Beta Core, a Karachi-based financial advisory and investment banking firm, facilitated the acquisition that marks a significant milestone in the global expansion strategy of investors.
“The acquisition of a Pakistani company by a multinational FMCG player signifies an important milestone at a time when the country is facing economic crisis and needs much needed foreign exchange inflows,” Khurram Schehzad, CEO of Alpha Beta Core, told Arab News.
Schehzad said the acquisition highlights his team’s commitment to delivering exceptional financial advisory services and ability to navigate complex cross-border transactions.
“We are confident that our clients’ investment in the Pakistani market will yield substantial returns and create mutually beneficial partnerships,” he added.
Schehzad said the NFCIGT aims to contribute to the growth and development of the region and countries in which it operates, including Pakistan, .
The NFCIGT chief said he would continue to look for complementary investment opportunities with local partners.
“Our ambitions are to extend to multiple categories in the current countries followed by market entries in other targeted geographies, including Africa and CIS (Commonwealth of Independent States),” he said.
