KARACHI: Pak Suzuki Motor Company Limited (PSMC) has decided to start manufacturing automobile glass in Pakistan along with a local partner, Techno Pack Telecom (Pvt) Limited (TPT). In this regard, PSMC will invest Rs 344 million for a 40 percent stake in the joint venture namely Tecno Auto Glass Limited. “The Board of Directors of PSMC in their meeting, held at its head office, Karachi passed the resolution that PSMC is authorized to invest in the company’s funds to make long term equity investment of Rs 344 million by way of purchase of 34 million ordinary shares of Rs10 each for setting up Tecno Auto Glass Limited for manufacturing of automobile glass”, said Hirofumi Nagao, PSMC’s Chief Executive Officer. In a stock filing, the CEO further stated that Tecno Auto Glass Limited will be a joint venture company between TPT and PSMC where PSMC will hold 40 percent of paid up capital and balance 60 percent by TPT and its nominees. Techno Auto Glass Limited will be a public limited company (unlisted) and an associated company of PSMC due to 40 percent shareholding to be held by PSMC. Further, CEO and/or Chef Financial Officer (CFO) of the Company are authorized to sign the joint venture agreement and complete the procedural formalities, either singly or jointly, he added. Meanwhile, TPT with its foreign partner, MEPA- Turkey, is engaged in manufacturing of tractor parts, auto parts and textile machinery parts while its main customers include PSMC, Allied Tractors, Al-Ghazi tractors and Millat Tractors. It is important to mention here that after showing interest by various foreign automakers in Pakistani auto sector, PSMC has been actively pursuing new investment opportunities as the company has decided to up grade its product portfolio with the likely introduction of ‘Celerio a 1,000cc automobile inthe second half of 2017 and the company is also planning to launch the Alto 660cc, later in 2018. According to an analyst, dominance in the Light Commercial Vehicle (LCV) market would provide PSMC the opportunity to capitalize on growth from the China-Pakistan Economic Corridor (CPEC) and improving law and order situation. PSMC said in its latest financial report that the Automotive Development Policy (ADP) envisages a development plan for the automobile industry to facilitate higher volumes, attract investment and ensure enhanced competition. ADP rationalized the tariff structure for existing Original Equipment Manufacturers (OEMs) by reducing the customs duty, however, tariff structure for new entrants and for the revival of non-operational units is significantly lower than tariff structure for existing OEMs. “Existing OEM’s in Pakistan were looking for new investment opportunities and expecting similar incentives as offered to potential new entrants. We understand that lack of incentive to existing OEMs will affect the desired objective of ADP”, said PSMC.