A significant change has emerged in Pakistan’s fast-moving consumer goods (FMCG) sector, as Colgate-Palmolive has entered into an agreement to acquire Procter & Gamble’s (P&G) fully equipped manufacturing plant at Port Qasim, Karachi.
The deal, announced on October 28, is still subject to final approval from the Competition Commission of Pakistan. Once approval is granted, Colgate-Palmolive will be able to take over the management of the production facility.
Meanwhile, Procter & Gamble has decided to phase out its local manufacturing operations in Pakistan. The company will continue to supply its products through third-party distributors, while products will be imported from regional manufacturing hubs.
The development is being described as a major business shift in Pakistan’s consumer goods industry, and it is expected to have implications for local manufacturing, imports, supply chains, and the business strategies of multinational companies in the market.