Softlogic signs MoU with B’desh white goods giant Walton for local manufacturing

Tuesday, 7 June 2022 03:53 - - {{hitsCtrl.values.hits}}

Lankan blue chip to kick off consumer durables production venture with washing machines and later expand to refrigerators, air conditioners, televisions and other selected small kitchen appliances
Venture will help minimise outflow of forex and re-export prospects to boost inflows
Retail and telecom biz accounts for 52% of Softlogic’s Rs. 112 b revenue in FY22
Bangladesh pioneer Walton’s products exported to over 40 countries

Softlogic Holdings PLC has signed a strategic MoU with Bangladesh’s Walton, a multinational electrical, electronics and other appliances brand, to locally manufacture a select range of consumer durables.

Softlogic will initially start manufacturing operations with washing machines and subsequently expand to refrigerators, air conditioners, televisions and other selected small kitchen appliances. As per the MoU signed last week in Bangladesh, Softlogic will also explore the international markets with a re-export business model.

Plans for the new venture were first announced in February this year in Softlogic’s FY22 3Q interim results statement.

Last week Softlogic Holdings Chairman Ashok Pathirage in the FY22 full year results interim statement said the Group was broad basing investments and focussing on local manufacturing to complement import substitution and venturing off-shore and setting up on-shore assembly plants to supplement the dire need for forex generation.

“The upcoming venture will help to minimise the currency outflow of the country in the electronics appliances industry. Secondly by international business expansion it will bring in foreign exchange into the country,” Pathirage told the Daily FT yesterday. The venture will also create job opportunities to skilled/semi-skilled youth passing out from vocational training institutions.

Softlogic is to benefit from Walton, which says it has one of the largest well-equipped R&I facilities in the world.

Softlogic’s retail and telecom sector accounts for 52% of its revenue and 38% of its EBITDA.

Set up in 1977, Walton is the pioneer of developing state of the art designs and modern technology having leading market share specialising in Multi-Stored Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones and Home Appliances. Walton exports its products to over 40 countries at present and plans to expand the reach to 200 countries by 2030.

Walton has been maintaining 100% compliances since its inception and certified ISO 14001:2004 Refrigerators and Air Conditioner Division, ISO 9001:2015 Refrigerators and Air Conditioner Division among others.