Ashmore & Liberty Group conducted a global screening for Aluminium based Beverage Cans investment opportunities in 2013. The research findings identified Pakistan among the top 3 most attractive markets for such an investment
The Market Assessment concluded that Carbonated Soft Drinks and Energy Drinks had been growing at a staggering rate of 15% since
2009 in both Pakistan and Afghanistan. The increasing volumes made investment in a manufacturing facility supplying Aluminium
Beverage Cans to Beverages industry players in Pakistan and Afghanistan the most viable option.
Beverage manufacturers in Pakistan routinely faced problems with imports of Aluminium Cans as ordering them from outside the Country entailed long lead times, supply availability issues during summer months and requirement to hold large inventory volumes of empty Can. Hence, the project was planned to be set up to help address a genuine market need of the Beverages Industry.
Ashmore Group, a leading asset management and private equity firm, has a vast experience in setting up can manufacturing plants in African and Asian mark Their venture prior to PABC was a Nigerian plant with a capacity of 1.2 billion Cans with two additional plants under construction to increase capacity to 3.6 billion.
One of the major advantages of the project and the reason for the State’s considerable support was the 100% import substitution for the domestic industry and the potential of sizeable exports to Afghanistan and other Countries
The business proposition has resulted in a win-win situation for both the producer and the buyer as the cost of locally produced Cans is lower than that of imported Can Furthermore, significant savings are achieved on account of lower transportation costs.