Airlink Communication Limited has decided to establish a mobile manufacturing facility in Pakistan with an investment of Rs. 500 million.
According to the stock filing, the company has planned to set up a wholly-owned subsidiary called Selected Technologies Pvt Limited, with the primary objective of manufacturing mobile devices of the selected brand(s).
The consent is hereby accorded for incorporating a wholly-owned subsidiary of Airlink Communication Limited in the name of style, Select Technologies (Pvt) Limited, and making an investment of Rs. 500 million divided into 50 million shares of Rs. 10 each, the notification said.
In this regard, the company has decided to increase the authorized share capital from Rs. 4 billion to Rs. 6 billion to meet the requirement of capital for setting up operations under a separate subsidiary.
Airlink has established a state-of-the-art smartphone assembly unit in Lahore.
The decision to set up a separate mobile manufacturing facility is to compete with various brands which have set up their assembly plants in Pakistan for meeting the demand of local and exports markets. Hence creating a competitive environment for Airlink Communication, which usually operates as an importer or distributor of various brands.
The proposed new subsidiary Select Technologies (Pvt) Limited is likely to provide assembling or manufacturing facilities to more brands of mobile devices.
Airlink Communication is an official partner and distributor of iPhone, Samsung, Huawei, MI, TCL, Alcatel, Tecno, and iTel, in Pakistan for the distribution of mobile phones and accessories, having a 20-25 percent market. It has a countrywide distribution network consisting of 16 regional hubs linked to over 1,000 wholesalers and over 4,000 retailers to facilitate the nationwide sales of mobile phones and accessories.
Airlink posted a profit of Rs. 1.505 billion in the outgoing financial year, showing a modest growth of 2.8 percent from the previous financial year despite challenges of economic slowdown.
The company operates 14 retail outlets, five of which were located in Karachi, five in Lahore, two in Bahawalpur, and one each in Hyderabad and Multan.