Karachi December 29 2022: Waves Home Appliances Limited decided to shift reliance on local components and delayed shifting to the new premises in order to defer capital expenditure on construction, according to company filing to the exchange.
According to the management, recent policy changes in allowing import of materials/components by the home appliances industry, the L/C opening process by the commercial banks is expected to go slow. Consequently, dependence on foreign sources of materials is continuing to be challenging, the Company has been therefore making arrangements for achieving major import substitution in order to ensure uninterrupted continuity of operations. In these circumstances market sizes of domestic appliances may not reach the expected levels, therefore deferral of capital expenditure is necessitated.
Accordingly management decided to switching to local source of materials, which will ensure less dependence on imports and in-house development of certain imported components through Company’s vendors.
Furthermore, planning to shift to the new premises in second-half of FY2023 instead of FY2022 allowing deferral of capital expenditure on construction of new factory.
