Chinese textile giant, Shandong Ruyi Technology Group has made a prudent move by acquiring 52 per cent share of Masood Textile Mills Limited (MTM), the most technologically advance enterprise in Pakistan. Chinese have been actively seeking Pakistani partners during the last six months. Textile entrepreneurs in China are losing their competitive edge in home country because of very high wages. Per capita income in China has now exceeded $6,500, which is almost five times higher than the per capita income in Pakistan.
“They tried other low cost destinations like Vietnam and Bangladesh but the low textile base in these countries did not provide them with the desired results,” he said, adding that Pakistan has one of the best basic textile industries in the world and abundant workforce well versed with textile production.
Chinese have been trying to acquire full ownership of local textile units. The textiles mills in Pakistan are now much better off and do not want to sell their mills. Textile experts point out that the said mill is perhaps the only Pakistani enterprise that remains in direct contact with the stores of its foreign buyers. It monitors online the sales pattern in these stores, including the colours that are preferred by the buyers. It, thus, could plan the replenishment of the depleted stocks quick. The direct shipment to the stores reduces the inventory cost of the buyers, besides increasing their sales, they said.
Chairman Punjab Industrial Estates Development and Management Company (PIEDMC) S M Tanveer said this is just the beginning. “We are expecting huge Chinese investment in textiles as soon as the special industrial zones are developed,” he said, adding that PIEDMC is working fast to complete its zones. He said in the meanwhile the Chinese would be accommodated in the textile city being developed at the Sundar Industrial Estate.