Karandaaz Pakistan Investment in Secure Logistics Group to create over 600 Additional Jobs
Karandaaz with the funding from the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) has signed an equity investment deal with Secure Logistics (Pvt) Ltd (SLG). Karandaaz’s equity investment with added co-investment from an international investor, Saudi Bugshan Group (Bugshan Group) in SLG, totals to PKR 1.2 billion. The investment, in addition to enabling SLG to expand its existing long-haul fleet, will also help it in expanding into additional segments of short-haul distribution and warehousing – thus becoming a leading domestic 3 PL player offering “one-window solutions” to clients supported by an in-house vehicle and asset tracking capability. The investment is expected to create more than 600 direct and indirect additional jobs in the logistics sector of the country.
Ali Sarfraz, CEO Karandaaz, while speaking about the investment said,
We are pleased to announce our investment in SLG, one of the leading logistics service providers in the country. As a result, over 600 additional jobs will be created, through direct employment by SLG or indirect employment in the supply chain. The fresh capital will help the Company substantially scale the business, create jobs, help further corporatize the logistic industry, and add value to the domestic economy. We continue to hold on our commitment to make a positive impact on SMEs and the economy at the macro level by inducing growth capital and creating employment.
Navid Goraya, the Chief Investment Officer of Karandaaz said,
Karandaaz is successfully diversifying its portfolio of investments in SMEs in different sectors. This investment along with the Bughsan Group in SLG will create a positive impact by demonstrating the ability of development capital to address growth barriers. Overall, this will bring improvements in the logistics sector. We are confident that the investment will induce growth and generate additional value for SLG in particular, and overall for SMEs operating in the sector.
Gulraiz Khan, CEO SLG said,
SLG has been rendering a broad array of solutions specializing in Logistics and Vehicle Fleet Management Services across Pakistan. We are grateful to have UK’s FCDO, Karandaaz and Bugshan Group as our partners. The additional capital that our investors have entrusted us with, will not only help the Company in widening the scope of its operation but will also help to transform Secure Logistics into an end to end logistics player.
According to the World Bank’s aggregated Logistics Performance Index (2012-18) Pakistan ranks at 95 among 167 countries. A strong logistics sector in a country will help in not only reducing the costs involved in transporting goods but will high quality logistics services also enhance the competitiveness of a country’s exports. Overall infrastructure and logistics services available in a country directly impact the national as well as international trade. The growth dynamics of the transport & logistics sector surpassed the annual growth rate of GDP during 1991 and 2016. It contributed 13.3% to the GDP in 2016-2017 and according to a 2018 paper of the Planning Commission Government of Pakistan; the logistics sector was responsible for the creation of approximately 3 million formal jobs.