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April 17, 2013



The Pak Suzuki Motor Company (PSMC) has reportedly sold its old motorcycle assembly plant to Reckitt Benckiser Pakistan. Pak Suzuki, in its recently-published annual report for the year ended December 2012, says the company has entered into an agreement with Reckitt Benckiser Pakistan for the sale of its old motorcycle plant. The deal covers the sale of the land, building and waste water treatment plant, for a total consideration of Rs280 million.

The plant had been operational since 1986 in the SITE industrial area – one of the oldest and most congested industrial zones of Karachi.

But PSMC says that since it has shifted to a new plant at Bin Qasim, an industrial cluster outside Karachi city, there is no use for keeping the old land. “This old plot was no longer in our use, so the management decided to sell it because there was no need or reason to keep it,” a PSMC spokesperson replied to The Express Tribune through an email.

The company’s new plant in Bin Qasim has been operational since July 2011, and is located in the same vicinity of its four-wheeler assembly plant. While replying to a question, the company spokesperson said the company’s operations, logistics, administration and management is now much easier and smoother, as both plants are located in the same area. The company spokesperson declined to provide further details about the deal.

The annual production capacity of the motorcycle plant was 44,000 units but it produced only 21,312 units in fiscal 2012, slightly above 50% of total installed capacity. Motorcycle sales in 2012 have been highest for the company in the last four years. Sales have been increasing gradually since 2009 – when the company produced just 14,530 units.

Pak Suzuki is a major player in Pakistan’s four-wheeler market, with over 60% market share in the segment. However, its share in the motorcycle segment is slightly less than 2%.

Published in The Express Tribune, April 6th, 2013.

From → By Farhan Zaheer

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