Select Technologies is planning a major expansion of its consumer electronics manufacturing business in Pakistan, using proceeds from its upcoming initial public offering (IPO) to increase production of smartphones, smart TVs and air conditioners.
The company aims to raise up to Rs3.73 billion through the IPO and invest the funds in new manufacturing facilities, production machinery and working capital.
A wholly owned subsidiary of Air Link Communication Limited, Select Technologies has established itself as a key player in Pakistan’s smart-device manufacturing sector. The company currently assembles smartphones, smart TVs, air conditioners and other consumer appliances through partnerships with Xiaomi and Hisense.
According to Group CEO Muzaffar Hayat Piracha, the company plans to diversify beyond smartphones and focus on higher-margin consumer technology products.
Under its expansion strategy, Select Technologies intends to increase annual production capacity to seven million smartphones, 360,000 televisions and 400,000 air conditioners.
A major component of the plan is a new manufacturing facility at the Sundar Green Special Economic Zone in Lahore. The site will support air-conditioner production, expand smart TV assembly and upgrade smartphone manufacturing operations.
The company also plans to enter the premium television segment by assembling larger smart TV models ranging from 75 to 100 inches.
Executives believe Pakistan’s consumer electronics market offers significant growth opportunities due to urbanisation, rising digital adoption and increasing demand for smart and energy-efficient household products.
In the air-conditioner market, annual sales reached approximately 1.12 million units in FY2025. Industry data also indicates substantial growth potential, with air-conditioner ownership still relatively low among Pakistani households.
The smart TV market is also expanding. Organised sales reached around 449,000 units in FY2025, while growing consumer demand is driving upgrades to larger and more advanced television models.
The new facility will benefit from tax incentives available in the special economic zone. According to company documents, the project will receive income tax exemptions until FY2035, providing a significant competitive advantage.
Select Technologies reported strong financial growth in recent years. Revenue reached Rs48.89 billion in FY2025, while gross margins improved from 5 percent in FY2024 to 9 percent in FY2025. During the first nine months of FY2026, gross margins increased further to 16 percent.
The company posted a profit after tax of Rs1.338 billion during the same period, reflecting growing demand for locally assembled consumer electronics products.
