Waves Home Appliances restarts AC production lines
- Says it reactivated its strategic relationship with a leading air conditioner kit supplier in China
Waves Home Appliances has resumed nationwide AC assembly and sales after a 2022 suspension due to import restrictions. Improved financial health and supply chain reactivation enabled this restart, expecting positive revenue impact.
- Temporary suspension of AC production in 2022.
- Reactivation of strategic partnership with a Chinese supplier.
- Expected positive impact on revenue and other product lines.
Waves Home Appliances Limited (WAVESAPP) announced on Monday that it had restarted the assembly operations of its air conditioner (AC) product range.
The company announced the development in a notice to the Pakistan Stock Exchange today.
“Following the imposition of country-wide import restrictions in 2022, driven by macroeconomic pressures and monetary tightening measures, the company’s working capital resources had come under pressure,” the company shared.
“This had resulted in the temporary suspension of production and sale of air conditioners and a few other product lines, except for the company’s flagship deep freezers and refrigerators,” the notice informed the bourse.
It added that with the improvement in the company’s financial health and realignment of its financial resources, “necessary supply chain arrangements for import and supply of larger volumes of imported materials have been made”.
“Consequently, the company has reactivated its strategic relationship with a leading air conditioner kit supplier in China, which also supplies to several major brands operating in Pakistan.”
It added that the first consignment of 5,000 CKD air conditioner kits had arrived, “enabling the resumption of assembly operations for both T3 and T1 models across key sizes aligned with market demand”.
“Revenue generated from this product segment will be recognised in the company’s revenue from the current quarter and is expected to contribute positively to overall profitability.
This process will also enable the revival of other product lines, including washing machines, microwave ovens, and water dispensers.”
Waves Home Appliance Limited (formerly Samin Textiles Limited) was incorporated in Pakistan on November 27, 1989, as a public limited company under the Companies Ordinance, 1984.
The principal line of business of the company is to carry on the business of designing, manufacturing, processing, assembling, distributing, trading, repairing, reconditioning, importing, exporting, buying, or dealing in all kinds of domestic consumer appliances and other light engineering products.