Ashmore to invest in Pakistan can maker
Ashmore, a specialist Emerging Markets investment group, has announced its intention for Ashmore funds to invest in Pakistan’s first aluminium beverage can plant near Islamabad.
This will be a first of its kind manufacturing facility in Pakistan with an expected annual capacity of over 700 million cans. In due course, it is intended that the plant will be expanded to an annual capacity of over 1.2 billion cans and will manufacture a range of standard and speciality beverage cans for the Pakistan and Afghanistan markets. Ashmore’s investment plans are supported by major customers in both markets.
Ashmore funds currently hold interests in three similar-sized beverage can plants in Sub-Saharan Africa and have been substantial investors in Pakistan both in the bond and stock markets since 1992.
Jan Dehn, Head of Research at Ashmore, said:
“Pakistan and Afghanistan are growing markets for beverage cans, which are currently reliant upon imports. Ashmore’s proposed investment will substitute imports with local production – creating jobs in Pakistan, delivering substantial cost and operational benefits for customers and helping to drive growth in the beverages sector. Ashmore remains committed to the good investment opportunities that Pakistan presents.”
Jahanzeb Khan, Vice President and General Manager, PepsiCo Pakistan & Afghanistan Business Unit, said:
“We at PepsiCo Pakistan welcome Ashmore’s proposed investment in a can plant in Pakistan which will provide significant benefits for the industry and generate further growth. We look forward to working with them.”
The Pakistan and Afghanistan markets are expected to continue growing as global players and their local franchisees invest in new production capacities.