Service Global Footwear Limited (SGFL), a subsidiary of Service Industries Limited, has approved a joint venture with China’s Golden Star Footwear Group Limited (GSFGL) to establish a manufacturing project for non-leather footwear in Pakistan.
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The announcement came after SGFL’s Board of Directors meeting on January 20, 2026, marking a step toward enhanced bilateral industrial cooperation.
Joint Venture Structure and Equity
Under the agreement, SGFL will hold a 51% equity stake, while GSFGL retains 49%. The new joint venture company (JVC) will be incorporated with a name subject to approval by the Securities and Exchange Commission of Pakistan (SECP). It will focus on producing and selling non-leather footwear for the domestic market and exports.
Investment and Phased Approach
The Phase-I project is estimated to cost $6.5 million, with contributions from both partners proportional to their shareholdings. Additionally, SGFL has approved a long-term equity investment of up to Rs1 billion in the JVC over the next five years, subject to shareholder approval under relevant company law provisions.
Operational Setup
The project will utilize SGFL’s existing leased land and building facility in Muridke, Punjab, initially for a one-year lease period. This leverages local infrastructure to kickstart manufacturing operations aimed at both local consumption and international markets.
This collaboration underscores growing Pakistan-China economic ties in the manufacturing sector, particularly footwear, and is expected to boost export potential while supporting industrial growth in Punjab.