KARACHI: Nishat Mills Limited has offered Millat Tractors Limited an 18 percent stake in Hyundai Nishat Motor Pvt Ltd, a joint venture of Nishat Mills and Sojitz Corporation, a bourse filing said on Tuesday.
“Board of directors of the company has approved Millat Tractors’ participation of
up to 18 percent in the joint venture company,” the notice issued by Nishat Mills said.
In February this year, an agreement was signed between Nishat Mills and Hyundai Motor Company of South Korea and Sojitz Corporation Japan for negotiating and establishing a framework for setting up a Greenfield project for plant assembly, and sales of passenger and one ton range commercial vehicles in Pakistan.
The investment is said to range between $400 million to $500 million of which Nishat Mills will be pouring in around $100 million.
An analyst said the Automobile Development Policy 2016-2021 provided various incentives for automakers entering the market, such as reduced import taxes on parts, which has invited the interest of auto makers in the country’s growing market.
Sensing intense competition with new market players who have got incentives in the auto policy, existing auto assemblers have also brought new models and announced investment plans.