SGFL, China’s Golden Star to launch $6.5mn footwear project in Pakistan

Publishing date: 21 January 2026

Published in: Business Recorder

Service Global Footwear Limited (SGFL), a subsidiary of Service Industries Limited, has approved the formation of a joint venture with China’s Golden Star Footwear Group Limited (GSFL) to manufacture and sell non-leather footwear in Pakistan and for export markets.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“The Board of Directors of Service Global Footwear Limited (SGFL), a subsidiary company, in its meeting held on January 20, 2026 has approved to enter into a joint venture agreement (JVC) between SGFL and GSFGL, a Chinese company, for setting up a project for manufacturing and sale of non-leather footwear in Pakistan and export thereof with an equity stake of 51% by SGFL and 49% by GSFGL and to incorporate JVC for undertaking the Project under the name as may be allowed by the Securities and Exchange Commission of Pakistan,” read the notice.

The project’s Phase-I cost is estimated at $6.5 million, to be contributed by both partners in proportion to their respective shareholdings.

SGFL has also approved “to make long-term equity investment of up to Rs1 billion in the proposed JVC from time to time within a period of five years, subject to approval of the shareholders of the company in terms of Section 199 and other applicable provisions of the Companies Act, 2017”.

In addition, the board approved the leasing of SGFL’s land and building in Muridke, Punjab, measuring 136,816 square feet with a covered area of 79,760 square feet, to the proposed joint venture for an initial period of one year. The lease of the building will be subject to prior approval of SGFL’s shareholders, as required under applicable regulations.

“Provided that the lease of the building shall be subject to the prior approval of the shareholders of SGFL, as required under Section 183 (3) of the Companies Act, 2017 and related regulations thereon.”

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 allied products.