The Coca-Cola Company – one of the Beverages Giant is planning to invest another PKR 3,800 Crore approx (US$379 Million) in its new Greenfield project in Multan region.
This was announced on Monday during a ground-breaking ceremony inaugurated by Senior Advisor of Chief Minister Punjab Zulfiqar Khosa, and attended by a huge gathering, including key government officials, media personnel, local dignitaries and Coca-Cola employees.
According to the press release, This massive investment of 3,800 Crore will be invested over the next three years, with the funds being utilized for expanding the business and bringing about infrastructure and systemic improvements in the Coca-Cola system. The energy efficient Multan plant will be fully equipped with state-of-the-art production equipment and product warehousing facility.
The press release added that Coca-Cola Company provides direct and indirect employment to more than 8,000 people in Pakistan; while another 35,000 people are employed through its supply chain, and another 100,000 benefit through employment in allied industries.
Besides the three Greenfield plants announced, Coca-Cola Pakistan already operates six bottling factories in Pakistan, located in Karachi, Gujranwala, Multan, Lahore, Rahimyar Khan, and Faisalabad. It buys close to PKR 13 billion in raw materials from around 300 local suppliers.
A Pakistani food processing company enters into a first of its kind joint venture with a Gulf Food company in Gulfood 2012 exhibition
Gulf exhibition is a leading annual trade show involving the food and beverage industry, was recently concluded in Dubai. 3,800 exhibitors participated from 88 countries, including Pakistan.
A number of major industry announcements were made during the four-day show; including a joint venture announcement between Middle Eastern halal food company Al Islami foods and the Pakistani company, Neat Foods.
The two have agreed to develop and re-export Al Islami’s products in Pakistan and international markets.
The Managing Director of Al Islami Foods Saleh Abdullah Lootah said that “our survey of Pakistan’s fast food market has shown interesting potential.
We are very confident that this is a good time and opportunity to enter Pakistan’s growing fresh and frozen food market.”
according to experts, Pakistan's consumer market is well over $42 billion an year.
After the success of KnN and MENU – many other Pakistan’s based Business houses were aiming for consumer market including Nishat, owned and operated by Pakistan’s only riches who made it in Forbes list, Mian Mohammad Mansha.
This venture is perceived as another attempt of foreign groups to try and make their space in Pakistan’s growing consumer market.
The Monsanto Company, which is a multinational agricultural biotechnology corporation and according to their website’s claim, a global leader in the areas of agricultural production, pharmaceuticals and food and nutrition in the world, is in a fight with Punjab government.
If we want a free economy in Pakistan, then Monsanto must not be allowed to market its seeds in Pakistan.”
According to an English Language newspaper, the Punjab government has refused to agree to US agrichemical giant Monsanto’s demands for intellectual property rights protection for its BT cotton seeds and has accused the company of a “monopolistic” plan to take over agriculture in Punjab.
The problem lies in Monsanto’s demand that farmers not be allowed to share its seeds and that the Punjab government pay a fine to the company if farmers in the province are found doing so. The company argues that it spends millions of dollars each year in developing those seeds and deserves to have its intellectual property protected and paid for and illegal to transfer without payment, much like the copying of movies and songs is illegal.
The Punjab government, however, is up in arms at this proposal, effectively calling it a conspiracy to make Punjab’s agricultural sector dependent on Monsanto. Government officials are so incensed at the proposal that they have gone to the extent of exaggerating Monsanto’s demands.
For instance, while Monsanto admits to wanting Lahore to pay a fine if its seeds are passed on between farmers without payment to the company, government officials claim that the company wants a complete ban on the sale of any other variety of seeds in the province.
Monsanto officials denied that allegation, stating that their only aim was to protect their own intellectual property rights. They said the company is not against the use of other seeds, just against the illegal transfers of its own seeds. “We are against the illegal commerce of our own seeds in Pakistan,” said the company spokesperson.
The provincial government, however, seems inclined to think that farmers sharing seeds should not be illegal. Pakistan uses about 40,000 tons of cotton seeds every year, about 25% of which comes from the 770 seed companies operating in Pakistan. The remaining three-quarters of seeds are those that farmers share with each other. The government views Monsanto’s opposition to this trade of its own seeds as a monopolistic practise.
The primary advantage of BT cotton is that it produces a disease and parasite-resistant crop, which requires less usage of pesticides and is thus more environmentally friendly. Federal government officials, however, dispute this.
“The number of pesticide sprays in Pakistan and even India have not been reduced after sowing BT cotton varieties,” said Khalid Abdullah, the cotton commissioner and the textile ministry. “The use of BT cotton varieties had not caused increase in production. The production increase in India has not been due to the usage of BT cotton but other factors like an increase in irrigated areas and agriculture sector reforms, etc.”
The federal ministry for food, agriculture and livestock signed a letter of intent with Monsanto on May 13, 2008 to expand cotton production by using its Bollgard variety. Pakistan signed a memorandum of understanding with Monsanto for introducing Bollgard-II technology on April 10, 2010.
The main threat to Pakistani cotton comes from parasites like spotted bollworms, American bollworms, pink bollworms, army worms etc, which dramatically reduce Pakistani cotton yields, since most farmers either do not use pesticides or not enough of the right combinations pesticides. Monsanto’s BT cotton would render the crop immune to these parasites.
Government officials said that there are several other parasites to which the BT cotton would still be vulnerable, such as the red cotton bug, the mealy bug and the dusky cotton bug.
Farmers do not seem happy with Monsanto’s proposals either. Ibrahim Mughal, the chairman of Agriforum Pakistan, a farmer’s lobby, said that
“Monsanto would destroy Pakistan. If we want a free economy in Pakistan, then Monsanto must not be allowed to market its seeds in Pakistan.”
Gloria Jeans Coffee, an Australian coffee brand, is planning to start another branch in Karachi, we have confirmed with sources. It would be interesting to note that the first branch was inaugurated just weeks ago.
When contacted Gloria Jeans to confirm this, they confirmed that another outlet is going to be opened soon revealing that location would be in in Dolmen Mall, a famous shopping mall in Karachi.
How serious is the coffee business in Pakistan? And whether spending on a Rs. 300 coffee.
‘Yes, people are still spending in Pakistan. Irrespective of economic environment in Pakistan – People spend on their wants’, said Mr. Aoun, marketing manager Gloria Jeans Pakistan said in a conversation with Economy Age.
In question of whether Gloria Jeans still sees room for another coffee brand in Karachi especially when Buttlers and Espresso comfortable already made its place, Gloria Jeans said that it will make its space in market as they have got their our own competitive advantages.
We’re not sure about the margins in Coffee Business in Pakistan but starting another branch in Karachi – Gloria Jeans is sure catching fast enough in Karachi.