Sazgar Engineering Works Limited (SAZEW), a Pakistani auto manufacturer, has announced plans to purchase land valued at approximately Rs1.54 billion “to meet future business requirements”.
The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) Thursday.
“The board of directors (BoD) of the company in their meeting held today i.e. November 14, 2024, has approved to purchase piece of land measuring nearly 140 kanals valuing approx. Rs1,540.00 million (subject to actual measurement of land) adjacent to the four-wheeler project to meet future business requirements,” read the notice.
The automaker said the BoD has authorised the company’s chief executive to negotiate and finalize the terms and conditions and to fulfill all the legal formalities to complete the said land purchase.
As per the company’s latest financial results, Sazgar saw its profit surge to Rs4.22 billion in the first quarter of FY25, an exponential increase of over 540% compared to Rs658 million recorded in the same period last fiscal.
The company also announced an interim cash dividend of Rs10 for the quarter.
Back in September, the automaker, engaged in the manufacture and sale of automobiles and three-wheelers, automotive parts, and household electric appliances, announced plans to launch New Energy Vehicles (NEVs) in Pakistan.
The company also plans to roll out the CKD [Completely Knocked Down] models of NEVs before the end of December 31, 2025, it informed its stakeholders back then.
In this regard, Sazgar’s board approved an estimated expansion cost amounting to Rs4.5 billion, without the cost of land, which shall be financed from the internal cash resources of the company.
NEVs refer to vehicles powered by alternative energy sources instead of traditional internal combustion engines (ICE) that run on fossil fuels like gasoline or diesel.
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