January 21, 2026 (MLN): Service Global Footwear Limited (PSX:SGF) has approved the formation of a joint venture (JV) with China-based Golden Star Footwear Group Limited to establish a non-leather footwear manufacturing and export project in Pakistan.

The decision was taken at the company’s Board of Directors meeting held on January 20, 2026.

Under the proposed arrangement, SGF will hold a 51% equity stake in the joint venture company, while Golden Star Footwear Group Limited will own the remaining 49%.

The project cost of the in Phase 1 is estimated to be $6,500,000 in equivalent Pakistani Rupee, which shall be contributed as per above shareholding proportion from time to time.

The joint venture company will be incorporated in Pakistan, subject to approvals from the Securities and Exchange Commission of Pakistan, according to the  filing on PSX revealed today. 

The board has also approved a long-term equity investment of up to Rs1 billion in the proposed joint venture over a period of five years, subject to shareholder approval in accordance with the Companies Act, 2017.

In addition, SGF has agreed to lease its land measuring 136,816 square feet, along with a building having a covered area of 79,760 square feet located on Muridke-Sheikhupura Road, Punjab, to the proposed joint venture for an initial period of one year, subject to required shareholder approvals.

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