Godrej, Made in Pakistan

Consumer goods factory in Pak via subsidiary route.

The Rs 5,500-crore Godrej group plans to set up a manufacturing facility for consumer goods in Pakistan by using the subsidiary route.

The broad guidelines of the plan suggest that Godrej (Singapore) Pte Ltd, a subsidiary of Godrej (Malaysia) Sdn Bhd, may set up a factory in Pakistan.

Godrej (Malaysia) is a wholly-owned subsidiary of Godrej & Boyce, the holding company of the Godrej group.

Currently, Pakistan does not allow Indian companies to set up production units there or directly sell their products in that country. No Indian company has so far taken the overseas subsidiary route to set up a manufacturing facility there.

"The Godrej brand, which has been in Pakistan before the Partition in 1947, is very popular in the country. The group now sells its consumer products in Pakistan through its subsidiaries in Sri Lanka and Singapore. We plan to set up a manufacturing unit there. However, nothing has been finalised yet," Group Chairman Adi Godrej told Business Standard.

Godrej said the consumer goods market in Pakistan was almost one-sixth of the Indian market. Going by this, the Pakistan market should be around Rs 7,000 crore.

"We know the psyche of the consumers there. Their preferences are almost the same as those of Indian consumers," he said.