Service Global Footwear Ltd. Enters Major Joint Venture with Chinese Partner -

PAKISTAN

Service Global Footwear Limited (SGFL) has announced a strategic joint venture with China’s Golden Star Footwear Group Limited. The partnership aims to establish a major non-leather footwear production facility in Pakistan for both domestic sales and export.

The decision was ratified by the SGFL Board of Directors in a meeting held on January 20, 2026, and has been formally disclosed to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) in compliance with regulatory requirements.

Key Highlights of the Joint Venture:

Equity Structure: SGFL will hold a controlling 51% stake in the new Joint Venture Company (JVC), with Golden Star Footwear Group taking a 49% share.

Investment Plan: SGFL has approved a substantial long-term equity investment of up to Rs. 1 billion in the proposed JVC. This investment will be made in phases over the next five years, pending approval from the company’s shareholders as per the Companies Act, 2017.

Project Scope: The core objective of the JVC is to set up a dedicated project for the manufacturing and sale of non-leather footwear, leveraging the technical expertise and market reach of the Chinese partner.

Asset Utilization: To facilitate the project, SGFL plans to lease a significant piece of its industrial property to the JVC. The asset includes land measuring approximately 136,816 square feet and an existing building with a covered area of 79,760 square feet, located on Muridke-Sheikhupura Road. The initial lease term is set for one year, with the building lease contingent on shareholder approval.

Strategic Significance:

This joint venture marks a strategic diversification for SGFL into the non-leather footwear segment, which is a growing global market. Partnering with an established Chinese manufacturer, Golden Star Footwear Group, is expected to provide critical technology transfer, supply chain advantages, and access to international export markets.

“The establishment of this JVC is a transformative step for our company,” the disclosure stated. It aligns with broader industrial goals of enhancing local manufacturing capabilities and boosting exports from Pakistan.

The incorporation of the new JVC will proceed once its name is approved by the SECP. The move is subject to standard regulatory clearances and the necessary approvals from SGFL shareholders for the large-scale investment and property lease.

Analysts anticipate that this venture could position SGFL as a key player in the export-oriented footwear industry, contributing to foreign exchange earnings and creating local employment opportunities. – ER News Desk

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