Service Global Footwear Limited, a subsidiary of Service Industries Limited, has approved a joint venture with China’s Golden Star Footwear Group Limited (GSFL). The project aims to manufacture and sell non leather footwear for Pakistan and export markets.
According to sources, the listed company disclosed this development in a notice issued to the Pakistan Stock Exchange on Wednesday. As per the notice, the Board of Directors of Service Global Footwear Limited (SGFL), a subsidiary company, approved participation in a joint venture agreement with the Chinese company GSFG on January 20, 2026.
The purpose of this joint venture is the manufacturing, sale, and export of non leather footwear in Pakistan. Under the agreement, SGFL will hold a 51 percent share, while GSFG will hold 49 percent. A new company (JVC) will be formed to implement the project, and its name will be finalized subject to approval by the Securities and Exchange Commission of Pakistan (SECP).
The estimated cost of the first phase of the project is 6.5 million US dollars, which will be contributed by both partners according to their respective shareholding ratios.
In addition, SGFL has approved a long term equity investment of up to PKR 1 billion in the proposed joint company over a period of five years, to be invested from time to time. This investment will be subject to approval by shareholders under Section 199 of the Companies Act 2017 and other applicable provisions.
Furthermore, the Board has approved leasing SGFL’s land and building located in Muridke, Punjab, to the proposed joint venture for an initial period of one year. The total land area is 136,816 square feet, with a covered area of 79,760 square feet. The lease of the building will be subject to prior approval of SGFL shareholders as required under relevant regulations.
Provided that, the building lease arrangement will also remain subject to prior approval of SGFL shareholders under Section 183(3) of the Companies Act 2017 and related rules.
Service Global Footwear Limited was incorporated in Pakistan as a public limited company in 2019. The company is engaged in the manufacturing, sale, marketing, import, and export of footwear, leather, and related products.
