Lucky Cement Limited has announced that its fully owned subsidiary Lucky Motor Company (LMC) signed an agreement with Samsung-Gulf Electronics Co. for assembling Samsung mobile Phones in Pakistan.

As per the details, Lucky motor company will invest in a manufacturing setup of Samsung mobile phones in Pakistan.

Lucky Motor Company is already engaged in the assembly and production of Kia and Peugeot branded vehicles and its parts in Pakistan.

LMC has applied for required regulatory approvals (under Mobile Device Manufacturing Regulations, 2021) for setting up manufacturing of mobile phone manufacturing from Pakistan Telecommunication Authority (PTA) and to avail subsequent benefits.

Previously, Economic Coordination Committee had lifted regulatory duty on import of CKD manufacturing devices of mobile phones and removed fixed sales tax on CKD mobile units as well under Mobile Device Manufacturing Regulations, 2021.

The news flow suggests that Lucky-Samsung’s production facility will be based in Lucky Motors’ existing Auto manufacturing plant at Bin Qasim Industrial Park, Port Qasim, Karachi.

Moreover, the company expects the production facility to be operational by the end of December 2021.

Lucky Group hasn’t disclosed further information while its capacity would be discussed between Lucky Motors and Samsung in due course of time.

mobile phone imports in Pakistan are around US$ 2 billion per year whereby Samsung has an estimated 24% market share.

With 100% local production of Samsung Phones, this could translate into a revenue of 76.8 billion Rupees per Year for the Lucky-Samsung joint venture. While Net Margins are estimated to be between 5% – 7% leading to net profit ranging between Rs.4 billion to Rs. 5 billion

The project’s Capital Cost is estimated to be around Rs. 5 billion, where Lucky Group is not likely to deploy Debt for funding keeping in view the strong liquidity of the group.

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