Colgate-Palmolive (Pakistan) Limited (COLG) has announced plans to acquire land, manufacturing facilities, and related industrial assets from Procter & Gamble (Pakistan) Limited at Port Qasim, Karachi, in a major development within the country’s FMCG sector.
The Board of Directors of Colgate-Palmolive has approved to negotiate and enter into asset purchase agreement with Procter & Gamble Pakistan for the acquisition of land, manufacturing facility and assets located at Port Qasim, a stock filing noted on Friday.
Colgate-Palmolive Pakistan Limited is a joint venture between Lakson Group and Colgate-Palmolive Company USA. The Company’s principal activity is to manufacture, market and distribute home care and personal care products. The company has manufacturing facilities in Kotri Industrial Estate, Sindh and Sundar Industrial Estate, Punjab.
The company delivered a top-line growth of 4.9%, underpinned by a favorable brand and pack mix strategy. Gross profit increased by 10.4% to Rs40.7 billion, driven by margin expansion supported by declining commodity prices and a relatively stable exchange rate environment.
P&G operated in fabric care, baby care, hair care, feminine care, beauty and personal care, oral care and healthcare sectors in Pakistan.
P&G announced in October 2025 that it is winding down its manufacturing and direct commercial operations in Pakistan, switching to a third-party distributor model.
In its last financial report, the company notes the world continues to change in dynamic and volatile ways. Category growth rates in many parts of the world are slowing. Consumers face greater uncertainty. Competition is fierce. The geopolitical environment is unpredictable. And technology is rapidly transforming nearly every aspect of daily life.
“There is a need for a bigger step forward to bolster P&G’s growth and value creation, and we are making changes to unlock significant opportunity for stronger delivery of P&G’s integrated growth strategy”.
According to the company, there are three main areas of focus: portfolio, supply chain and organization design. The portfolio choices include exits of some categories, brands and product forms in individual markets. They may also include some brand divestitures.
“These portfolio moves enable us to make related interventions in our supply chain, right-sizing and right-locating production to drive efficiencies, faster innovation, cost reduction, and even more reliable and resilient supply,” the report mentioned.
It may be mentioned here that Pakistan’s economy has shown encouraging signs of stabilization in the wake of the IMF program. Key indicators, such as a current account surplus, improved foreign exchange reserves, and moderate inflation, point toward a cautious but positive recovery.
While market sentiment is gradually improving, significant downside risks persist. These include potential macroeconomic policy slippages, energy tariff shocks, and rising global commodity prices, all of which could jeopardize the recent macroeconomic gains.
