Air Link’s subsidiary to manufacture Xiaomi phones in Pakistan

KARACHI: Select Technologies, a wholly-owned subsidiary of Air Link Communication has partnered with Xiaomi for the manufacturing of Xiaomi mobile phones in Pakistan, a bourse filing said.

“Air Link is targeting a production of initially around 2.5 to 3 million handsets annually subject to smooth supply chain, which is expected to add approximately $450 million annually in revenues and will have a material incremental impact on the EPS of the company other than the normal course of business.”

The production facility will be located adjacent to the Air Link’s existing mobile manufacturing facility at Quaid-e-Azam Industrial Estate, Kot Lakhpat Lahore.

The production facility is anticipated to be operational within the month of January 2022.

Select Technologies will be the manufacturing partner, whereas Air Link will continue to be one of the largest distributors of Xiaomi phones in Pakistan.

Air Link also expects to substantially increase its distribution and retail business of Xiaomi phones in Pakistan.

The Mobile Device Manufacturing (MDM) Regulations of January 2021 encouraged manufacturers to establish their units in Pakistan.

So far, 26 companies have been issued MDM authorization, enabling them to manufacture mobile devices in Pakistan. These include renowned brands such as Samsung, Nokia, Oppo, Tecno, Infinix, Vgotel, Q-mobile, etc.

In September this year, Air Link Communication (ALC), a smartphone assembler and exporter in Pakistan, raised the single-largest investment worth Rs6.43 billion through selling 90 million shares to institutional and rich individual investors at the Pakistan Stock Exchange.