Waves Home Appliances Receives Offer for Joint Venture From Big Foreign Company

Waves Home Appliances Limited has received an offer for a strategic alliance and joint venture from a major international player. The company has begun discussions to develop a comprehensive business model, the company informed the Pakistan Stock Exchange (PSX) on Monday. Accordingly, the company has initiated a discussion to develop a comprehensive business model that covers among other things, the provision of technical know-how, engineering personnel, use of their brand name by the Company in domestic as well as in export markets, management sharing structure and the amount of investment to be brought in. A formal agreement will be signed on the finalization of these discussions. The primary benefits to the Company from this alliance will be access to advanced technology, expertise, and know-how to enhance its product quality, cut down production costs, and implement technical and operational best practices, along with the ability to procure cheaper materials. This will give the company a competitive edge in local as well as international markets. The foreign partner, taking benefit of cheaper labor and freight cost savings from Pakistan will have a competitive edge in Middle Eastern, African, and European markets. Waves Home Appliances Limited (PSX: WHALE) is in the business of designing, manufacturing, processing, assembling, distribution, trading, repairing, reconditioning, importing, exporting, buying, or dealing in all kinds of domestic consumer appliances and other light engineering products. At the time of filing, the company’s scrip of the bourse was Rs. 8.01, down 2.20 percent or Rs. 0.18 with 2.78 million shares on Monday.