Turkish firm sees $400mln potential in appliances’ exports

ISLAMABAD: Pakistan could fetch $300 to 400 million from exports of home appliances if the government focuses on non-traditional export sector and diversify exportable products, an industry official said on Thursday.

Chief Executive Officer Umar Ahsan said the company is committed to transfer technology to Pakistan to increase value-added exports from the country.

“Automatic washing machines can be exported from Pakistan. There is a potential to fetch $300 to $400 million in export revenue from products manufactured in the company’s (Dawlance) supply chain,” Ahsan said, talking to media. Overall exports could increase $10 to $15 billion per annum with diversification of exports and through focusing on non-traditional items. “But, first of all this requires a level-playing field to all the new sectors of the economy,” he added.

Ahsan accompanied Can Dinçer, chief commercial officer of Acrelik, Turkish parent company of Dawlance. Dinçer said the company has invested over $300 million in Pakistan since acquisition of Dawlance in 2016.

“We have re-invested $60 million in Pakistan whatever we earned here and now (are) eyeing to increase our shares in exports,” he said. “We are asking the government to focus on diversifying exports related to engineering goods instead of relying on few products, such textile, surgical and other products.”

Dinçer said the company’s plan is to introduce competitive pricing model in all categories to better response to the needs of the changing demands while using the distribution channels effectively in 2020.

“Since 2016, we have gained a very strong foothold in one of the world’s most promising markets, Pakistan and further built on the strengths of Dawlance,” he said. “We are very proud to see that Dawlance and Arçelik grow together as part of a larger and global organisation.”

Dawlance set up new production lines to manufacture automatic washing machine and water dispensers in the country. It also began exporting water-dispensers to Europe. It has three factories and is expanding its sales and service network, which comprises of 1,800 plus dealers across Pakistan.

The company recently inaugurated an experience store in Peshawar, offering complete range of products to consumers. It plans to establish more experience stores in other cities. Ahsan said China is the company’s main competitor because of the economy of scale. Cost of production needs to be reduced to increase Pakistan’s share in world’s exports.

On taxation, he said the Federal Board of Revenue abolished 10 percent depreciation out of total investment and the company made it part of its calculations. “We took investment decision in view 10 percent depreciation allowance,” he said. “We asked the FBR to provide this facility.”

Ahsan said the company has so far upgraded skills of 300 workers to meet quality and standard requirements for the manufactured products.