Business

Pakistan: China’s Shandong Ruyi acquires 52 pc share of Masood Textile Mills

Chinese textile giant – Shandong Ruyi Technology Group Co Ltd has acquired 52 percent share of Masood Textile Mills Limited (MTM), one of the most technologically advanced textile mills in Pakistan.

Shandong Ruyi is one of the ten largest textile entrepreneurs in China. The latest move is seen as a win-win situation for both the partners – Shandong Ruyi has the resources to invest and expand the operations of MTM. Also, the Chinese investor will procure more from MTM, than the Pakistani mill currently exports.

MTM is looked upon as an apt partner for Shandong due to its technologically advanced plants. Textile experts point out that MTM 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 colors 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 sales.

MTM produces and exports yarn, fabric, garments that include lounge wear, active wear, underwear, sleepwear, sportswear, etc. Pakistan has recently amended the Special Export Zone Act to attract foreign investors. The Pakistan textile industry expects a steady flow of Chinese investments once the special export zones are developed. The country is also developing a Textile City at Sundar Industrial Estate, in Lahore.