CHAIRMAN’S MESSAGE
SYED ANWER SUHAIL RAZVI
CHAIRMAN
PAKISTAN SOAP MANUFACTURERS ASSOCIATION
FOR THE YEAR 2009-2010
With the help of this newly formed Website, I would like to express my views regarding
the potentials of soap industry in Pakistan.
In 1947 the main Soap Industries were situated in those parts of India, which are not
included in Pakistan. There were only two or three small units those were making low
quality washing soap with local raw material. There process was manual in pan cooking
and production was very meager catering surrounding needs. In the beginning there
was no barrier of trade between India and Pakistan. So all sort of soap used to be
imported from India for the Pakistani consumers. During that period entrepreneurs who
were Soap Manufacturers in undivided India set up few factories and they were
deprived of their units due to migration. Though those units were comparatively large,
the quality was much better, due to their previous experience, and production was
regular but their manufacturing process was manual and orthodox.
By the passage of time not only the pioneers but also many new parties, including some
multinationals, established fully mechanized and automatic plants and started the
production of Toilet Soap and Laundry Soap on highest international standard.
Presently the Soap Industry is very well established in Pakistan, not only meeting the
entire needs of the country but also exporting a part of its production to Middle Eastern
& African Countries. There are approximately 600 units, approximately 100 units in
organized sector and 500 factories in un-organized sector making Soaps. They are
employing 154000 workers in Pakistan contributing approximately Rs: 16 billion to the
national exchequer.
All of us are well aware the fact that Soap is such an essential item that the day starts with
the use of Soap and ends with the soap. But unfortunately the treatment of our Government
with Soap Industry is step motherly. The local industries are facing continuously decline in
sales & production due to various damaging policies of the Government.
Now you can very well imagine how can we compete with imported soap after paying
such a heavy duties? Consequently the imported soaps are freely sold in the market at
cheaper price and we are loosing our sales and production in favor of imported soap
and many of our industries are at the verge of collapse. This situation is very alarming
as billion of rupees are invested in our industries and we are providing jobs to more
than 150,000 workers, which are at stake. The custom duties on our all basic raw
materials must be at 5%.
The current economic condition of our country and increase in cost of production due to
higher in-put cost of utilities is the main hurdle. All these factors have adversely effected
the production and sales. Our industries are passing through a very critical phase as we
are insisted by the Government to continue production to enhance the economic activity
but the consumers are shrinking their consumption due to higher prices.
If the government is apprehensive of any revenue reduction, let me assure you that
volume of local industry will increase and it will yield more revenue, which not only
offset the reduction but also generate much more plus revenue.
Approved by SYED ANWER SUHAIL RAZVI
CHAIRMAN’S MESSAGE
SYED ANWER SUHAIL RAZVI
CHAIRMAN
PAKISTAN SOAP MANUFACTURERS ASSOCIATION
FOR THE YEAR 2009-2010
Alhamd-o-Lillah! Indeed it is a big honour for me that with the help of this newly formed
Website, I am able to express my views regarding the potentials of soap industry in Pakistan.
In 1947 the main Soap Industries were all situated in those parts of India, which are
not included in Pakistan. There were only two or three small units those were making
low quality washing soaps with local raw material. There process was manual in pan
cooking and production was very meager catering to surrounding needs. In the
beginning, there was no barrier of trade between India and Pakistan. So all sort of soap
used to be imported from India for the Pakistani consumers. During that period
entrepreneurs who were Soap Manufacturers in undivided India set up few factories and
they were deprived of their units due to migration. Though those units were
comparatively large, the quality was much better, due to their previous experience, and
production was regular but their manufacturing process was manual and orthodox.
By the passage of time not only the pioneers but also many new parties, including some
multinationals, established fully mechanized and automatic plants and started the
production of Toilet Soap and Laundry Soap on highest international standard. Presently
the Soap Industry is very well established in Pakistan, not only meeting the entire needs of
the country but also exporting a part of its production to Middle Eastern & African
Countries. There are approximately 600 units, approximately 100 units in organized sector
and 500 factories in un-organized sector for making Soaps. They are employing 154,000
workers in Pakistan contributing approximately Rs.16 billion to the national exchequer.
All of us are well
with the use of
Government with
decline in sales &
aware of the facts that Soap is such an essential item that the day starts
Soap and ends with the soap. But unfortunately the treatment of our
Soap Industry is step motherly. The local industries are facing continuously
production due to various damaging policies of the Government.
Now you can very well imagine how can we compete with imported soap after paying
such a heavy duties on Raw Material? Consequently, the imported soaps are freely sold
in the market at cheaper price – due to smuggling, ATT – Afghan Transit Trade and
under-invoicing, as a result we are loosing our sales and production in favor of
imported soap and many of our industries are at the verge of collapse. This situation is
very alarming and we are putting the future of Soap Industry at stakes, if we don’t
protect the interest of those who have invested billion of rupees in our industries and
are providing jobs to more than 150,000 workers. The Custom Duties on all our basic
raw materials should not be above 5%.
The current economic condition of our country and increase in cost of production due to
higher in-put cost of utilities is the main hurdle. All these factors have adversely effected
the production and sales. Our industries are passing through a very critical phase as we
are forced by the prevailing circumstance to continue production to enhance the economic
activity but the consumers are shrinking their consumption due to higher prices.
If the government is apprehensive of any revenue reduction, let me assure that volume of
local industry will increase and it will yield more revenue, which will not only offset the
reduction but also generate much more revenue beside passing the benefits to consumers.
*-0-:-0-:0-*
CHAIRMAN’S MESSAGE
SYED ANWER SUHAIL RAZVI
CHAIRMAN
PAKISTAN SOAP MANUFACTURERS ASSOCIATION
FOR THE YEAR 2009-2010
Alhamd-o-Lillah! It gives me great pleasure to express my views regarding the potentials
of Pakistan’s soap industry through this newly formed Website.
In 1947 the main Soap Industries were all situated in those parts of India, which are not
included in Pakistan. There were only two or three small units that were making l ow quality
washing soaps with local raw material. Their process was manual through pan cooking and
production was meager catering to the surrounding needs only. In the beginning, there
was no barrier of trade between India and Pakistan. So all sort of soap used to be imported
from India for the Pakistani consumers. During that period entrepreneurs who were Soap
Manufacturers in undivided India and had set up few factories were eventually deprived of
their units because of partition. Even though the units were comparatively large,
manufacturing process was manual and orthodox; still the quality was much better and
production was also regular due to their previous experience.
By the passage of time not only the pioneers but also many new parties, including so me
multinationals, established fully mechanized and automatic plants and started the
production of Toilet Soap and Laundry Soap on highest international standard.
Presently the Soap Industry is very well established in Pakistan, not only meeting the
entire needs of the country but also exporting a part of its production to Middle Eastern
& African Countries. There are approximately 600 units, approximately 100 units in
organized sector and 500 factories in un-organized sector for making Soaps. They are
employing 154,000 workers in Pakistan contributing approximately Rs.16 billion to the
national exchequer.
We all know the fact that Soap is such an essential item that the day starts and ends with
the use of Soap. But unfortunately the Soap Industry is being given step motherly treatment
by the government. The local industries are showing continuous decline in sales & production
due to various damaging policies of the Government.
How can we compete with imported soap after paying such a heavy duties on Raw
Material? The imported soaps are freely sold in the market at cheaper price – reasons
being smuggling, ATT – Afghan Transit Trade and under-invoicing. This has resulted in
affecting sales of local brands, as a result we are losing our sales and production in
favor of imported soap and many of our industries are on the verge of collapse. This
situation is very alarming and we are putting the future of Pakistan’s Soap Industry at
stake. We should protect the interest of those who have invested billion of rupees in
our industries and are providing jobs to more than 150,000 workers. The Custom
Duties on all our basic raw materials should not be above 5%.
The reason for decline of Pakistan’s Soap Industry can be attributed mainly to the current
economic conditions in the country which has increased the cost of production out of
proportion and adversely affected sales.
Giving protection to the local industry will increase volume and yield more revenue,
which will not only generate more revenue for the government but the benefit in terms
of pricing can also be passed on to the ultimate consumers.
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