Colgate-Palmolive Pakistan has won board approval to acquire land, manufacturing facilities, and related industrial assets from Procter & Gamble Pakistan at Port Qasim, signaling a major shift in the country's FMCG sector as P&G scales back direct operations.
Strategic exit by P&G
Procter & Gamble announced in October 2025 that it would wind down its manufacturing and direct commercial operations in Pakistan, moving instead to a third-party distributor model. The company operates fabric care, baby care, hair care, feminine care, beauty and personal care, oral care, and healthcare sectors in the country. P&G's decision reflects broader efforts to streamline operations amid slowing category growth across many markets globally.
Growth and margin gains for Colgate-Palmolive Pakistan
Colgate-Palmolive Pakistan, a joint venture between Lakson Group and Colgate-Palmolive Company USA, delivered revenue growth of 4.9% in the fiscal year ended June 30, 2025, underpinned by favorable brand and pack mix strategy. The company's gross profit expanded by 10.4% to Rs40.7 billion, driven by margin expansion supported by declining commodity prices and a relatively stable exchange rate environment. Colgate-Palmolive manufactures home care and personal care products and currently operates manufacturing facilities in Kotri Industrial Estate, Sindh and Sundar Industrial Estate, Punjab.
Broader backdrop of P&G restructuring
P&G's decision to exit Pakistan reflects a global shift in strategy. The company cited slower category growth in many parts of the world, with consumers facing greater uncertainty, fierce competition, and an unpredictable geopolitical environment. P&G has identified three main focus areas for its integrated growth strategy: portfolio, supply chain, and organization design. This includes exits of some categories, brands, and product forms in individual markets, as well as potential brand divestitures. The company is also right-sizing and right-locating production to drive efficiencies, faster innovation, and cost reduction.
Pakistan economy stabilizing
Pakistan's economy has shown encouraging signs of stabilization following an IMF program, with key indicators including a current account surplus, improved foreign exchange reserves, and moderate inflation pointing toward cautious but positive recovery. Market sentiment is gradually improving, although significant downside risks persist. These include potential macroeconomic policy slippages, energy tariff shocks, and rising global commodity prices that could jeopardize recent gains.
Next steps
The board approval allows Colgate-Palmolive Pakistan to negotiate and enter into an asset purchase agreement with P&G Pakistan. No acquisition price or timeline has been disclosed in available filings or announcements.