Select Technologies plans aggressive smart-TV, AC, and 5G smartphone production expansion: Muzaffar Hayat Piracha

KARACHI: Select Technologies Limited is planning a major expansion in Pakistan’s smart devices and home appliances manufacturing sector, with IPO proceeds of up to Rs3.73 billion to be deployed for new air-conditioner plant and machinery, 5G smartphone assembly, smart-TV production line expansion and working capital.

The company aims to scale its annual capacity to 7 million smartphones, 360,000 televisions and 400,000 air-conditioners, as it moves beyond mobile phones into higher-margin consumer technology products through partnerships with Xiaomi and Hisense.

Select Technologies Limited is planning to expand beyond smartphones into higher-margin consumer technology categories, including smart TVs, air conditioners and other home appliances, as the company looks to build a broader local manufacturing platform in Pakistan, Muzaffar Hayat Piracha, Group CEO Airlink Communication said on Monday.

He said that a key part of this growth strategy is SELECT’s partnership with Hisense, one of the leading global consumer electronics and home appliances companies.

“The agreement is expected to pave the way for globally recognized products to be assembled and marketed in Pakistan, while supporting the country’s shift towards local production of consumer electronics and appliances.”

Select Technologies Limited, a wholly owned subsidiary of Air Link Communication Limited, has already established itself as an important player in Pakistan’s smart devices manufacturing space. The company was incorporated in October 2021 and is engaged in the manufacturing and assembly of smartphones, smart TVs, air conditioners and other consumer appliances in Pakistan for Xiaomi and Hisense.

According to Muzaffar Piracha, SELECT has captured a 15.5 percent share of Pakistan’s smartphone assembling sector and 7.7 percent share of total mobile devices manufactured in FY2025. “The smartphone operations are supported by a manufacturing supply arrangement with Xiaomi, one of the world’s leading smartphone and smart devices brands.”

“The planned expansion into smart TVs and air conditioners is important because these categories are expected to offer higher margin potential and deeper long-term growth opportunities compared to a single-product manufacturing model,” he added.

Pakistan’s consumer electronics and household appliances market is witnessing rising demand due to urbanization, population growth, changing lifestyle preferences, increasing digital adoption and a gradual shift towards smart and energy-efficient products.

In the air-conditioner segment, the prospectus states that annual market sales stood at around 1.12 million units in FY2025, while Pakistan had 40.6 million households and AC possession of 16.5 percent, showing significant room for future penetration.

The smart-TV segment also offers growth potential. According to the prospectus, Pakistan’s organized smart-TV market recorded annual sales of around 449,000 units in FY2025, while TV possession stood at 69.9 percent. This indicates a sizable replacement and upgrade market as consumers shift towards larger, smarter and more connected television models.

A central part of SELECT’s business plan is the development of its new production facility at Sundar Green Special Economic Zone, Lahore. The facility is expected to support the company’s expansion into air conditioners, enhance smart TV manufacturing and upgrade smartphone plant and machinery.

The company also plans to expand into large-scale TV models in the 75-inch to 100-inch category, allowing it to participate in premium and higher-value consumer electronics segments.

The Sundar Green SEZ facility also provides an important cost and profitability advantage. According to the prospectus, the facility will benefit from income tax exemption until FY2035, effectively providing a 10-year tax holiday. These incentives may support margins, improve competitiveness and help SELECT compete more effectively against imported finished goods, particularly in price-sensitive categories such as televisions and air conditioners.

SELECT’s financial performance reflects the scale already achieved by the business. The company recorded revenue of Rs48.893 billion in FY2025, while gross margin improved to 9 percent from 5 percent in FY2024. In 9MFY2026, gross margin further improved to 16 percent, while profit after tax stood at Rs1.338 billion.

SELECT intends to raise Rs2.489 billion at the floor price through the issue of 88.889 million ordinary shares. The proceeds are planned for AC assembly line machinery, smartphone plant and machinery, TV assembly line expansion and working capital requirements.