Corporate Pakistan is in a flux. A shake-out of sorts. The current fixation is on Exits. And the elusive FDI. In the good old days, the cinema houses (REX, RIO, etc.) had red-light exit signs on each door. During one performance, there was a popping sound and one exit light failed. Immediately the hall lights went on.
The fuse was fixed, and the performance resumed. It was existing protocol.
Unfortunately, in corporate issues, fuses are not that easy to fix! Much is being written about MNC exits. All good & relevant comments. The most noteworthy ‘exit’ is Yamaha Motorcycles’. Yamaha is the most structured brand in the world, covering over 50 product categories: from motorcycles to pianos to outboard motors. This is Yamaha’s second exit. Their first motorcycle venture failed. They left. Then came back.
This double whammy is worth investigating. When an MNC exits twice, it should set alarm bells ringing. Is the exit about “doing business”, or is it about the super entrenched “H” motorcycle brand? And the emerging competition from Chinese brands?
One consequence of MNCs’ exits is that the leadership grooming will suffer. MNCs contributed hugely to developing top-tier managerial talent in Pakistan. Even exporting it. Citibank, KI, P&G, Standard, etc. The new owners may not have the same mindset about human resources. This issue is of major concern, and its impact will be felt across all sectors.
Privatisation is in its 7th edition. Let’s hope for some success! My view is that PIA should not, repeat not, be privatized. PIA is the national circus. It gives us something to laugh about, smile about, and celebrate PIA’s golden years-Jackie Kennedy and all. And what about the Air Marshals who take turns to ‘turn it around’. Ditto for Pakistan Railways and the Steel Mills.
The Indian sabotage. Behind the scene, unbeknown to most, the Indian lobby is actively encouraging the exits. Most MNCs consider India a huge market, and a great upside. The Indian lobby in South East Asia, the Middle East, Europe, and the US is actively involved in discouraging FDI in Pakistan, encouraging the exits.
Be that as it may, seen in the new market is the effort to dislodge the tea as the beverage of choice. Visible efforts are being made by coffee brands to gain market share. This effort is led by that Swiss Giant, and other small players. The 300 years of tea dominance in the Subcontinent is under threat. Unilever has hired off its tea business.
Now called “Infusions”. Wow. Great name! I can wake up in the morning and call for my ‘infusions’. Society ladies can have infusion parties, complete with tomato sandwiches. Personally, I hope ‘TEA’ wins. The two best vacations of my life (1968 & 69) were spent in the tea estates of the then East Pakistan. The manager of the tea estate was king. As his guest, you were demi-king. Ah! The charms of the ‘Chakma’ tea pickers. Corporate women in Karachi in particular and in Pakistan in general continue to be stressed out.
Underpaid, overworked. Harassment at the workplace, transport, public places. I have a large banking universe for extended family members living abroad. RM’s and BM’s resign frequently. Long work hours, no family time.
Actually, during the working week, corporate women need “decompression” space. It is doubtful if human resource departments have the appreciation of what actually constitutes “decompression”.
Another discernable market trend: middle-aged and young men are retreating from shaving and nursing beards. The morning shave costs Rs 150. All factors and inputs considered. Or Rs 250 with better ingredients. The young men working or studying cannot spend Rs 150-250 every morning. They would rather top up their motorcycles or use the money to ‘chill’ with friends. This trend should worry Gillette and the Treet Corporation.
Copyright Business Recorder, 2025
The writer is a former Executive Director of the Management Association of Pakistan