Pakistani firm targeting global expansion

Plagued by energy crisis and security concerns, aggressive business expansion is not on the agenda of many in the country. STOCK IMAGE

KARACHI: 

Pakistan hardly makes the news for positive developments. An aura of negativity has crept in with most failing to acknowledge the good that comes along every now and then.

Businesses in Pakistan face the same issue. Plagued by energy crisis and security concerns, aggressive expansion is not on the agenda of many.

However, the country’s e2e (end-to-end) Supply Chain Management (SCM), as part of its global expansion plan, has established premises in Singapore in a bid to tap into important emerging markets in Southeast Asia.

The company’s strategy is to enter the economic hubs of their respective regions, says its chief.

“The e2e management has long been committed to the high growth in Southeast Asia Market. We see Singapore as a strategic economic hub,” e2e SCM’s Chief Executive Officer Abid Butt said, adding that the new office would focus on Pakistan-based businesses [their prevailing clientele] and explore new business opportunities in emerging markets that are controlled from Singapore.

Establishing an office in Singapore is an important step towards opening future avenues into markets of Indonesia, Malaysia, Philippines and Thailand, the CEO said.

However, this development is only a small move towards implementing the bigger game plan —planning to expand its operations in other economic hubs in the Middle East and Far East regions.

“As part of our aggressive expansion plans, we are launching our Dubai office in December and going to Hong Kong next year,” the CEO told The Express Tribune in a telephonic interview.

“Our objective is to become a global player and the best strategy to achieve this goal is to enter the regional economic hubs and expand from there,” the INSEAD graduate said responding to a question about the company’s growth plans.

The CEO explained that the purpose of going to places such as Singapore, Dubai and Hong Kong is simple — you can control other markets from these economic hubs. Giving an example, he said a lot of business decisions regarding Indonesia are taken in Singapore, not in Indonesia. “I have been to these places and I know the importance of being there.”

Acknowledging the challenges associated with entry to a mature market, Butt said, “It is our second strategy, which is focused on reducing the business risk.

“Our global competitors are expanding into frontier markets in Africa but we are already in a frontier market. It doesn’t make sense to enter another frontier market, which will only increase the risks.”

This may not be a bad strategy as the company already got off to a humble beginning in Singapore.  “Our volumes in Singapore are already close to 20% of our Pakistan turnover,” Butt said.

Though it will be challenging for a new player to grab a share in the far more developed markets of Singapore, Dubai and Hong Kong, Butt’s strong international background in the logistics and supply chain areas is likely to help him.

It was his international exposure and expertise that helped e2e grow its revenues by a massive 1,918% between 2008 and 2010 and become the Pakistan’s fastest growing company on the list of AllWorld Network, an international ranking system for growth companies in emerging markets.

Looking ahead: Egypt to offer projects to foreign investors

President Abdel Fattah al-Sisi has put economic recovery at the top of his agenda, and the March 13-15 conference in the resort town of Sharm El-Sheikh will highlight a series of projects for which investment is wanted. PHOTO: REUTERS

CAIRO: Egypt will offer a slew of projects to domestic and foreign investors at a conference in March aimed at kick-starting an economy battered by years of political unrest, the prime minister said Saturday.

Falling tourist revenues and slowing investments have left Egypt’s economy in ruins after nearly four years of turmoil that saw two presidents ousted following mass street protests.

But President Abdel Fattah al-Sisi, elected by a landslide this year, has put economic recovery at the top of his agenda, and the March 13-15 conference in the resort town of Sharm El-Sheikh will highlight a series of projects for which investment is wanted.

The premier, Ibrahim Mahlab, told reporters in Cairo the gathering will be the “cornerstone for Egypt’s economic revival and aims to provide the resources used … to improve health care services, the educational system and provide energy to all.”

Among them, he mentioned at least 10 projects in energy and river transport, but did not elaborate.

Mahlab said the conference is a message to the world that “Egypt needs a strong economy that can stabilise the whole region.”

“Our economy is about to recover … All the economic indicators point to this … and this conference is to support the Egyptian economy.”

In August, Sisi launched the construction of a $4 billion (3.2 billion euro) expansion of the Suez Canal that aims to speed up traffic and foresees the creation of one million jobs.

Sisi has set an ambitious target of digging the new canal in one year, which will run parallel to the original one, built 145 years ago.

Contingent on another case: Judge signs off $450-million settlement deal

The agreement is contingent on the upholding of a verdict in a July 2013 federal court ruling that Apple violated antitrust laws by orchestrating a conspiracy with five publishers to raise e-book prices. PHOTO: REUTERS

SAN FRANCISCO: A US judge has signed off on Apple’s $450-million legal deal to compensate consumers harmed by an illegal price-fixing conspiracy for electronic books.

The settlement negotiated to avoid trial in the civil case brought by authorities in 33 states calls on Apple to reimburse consumers to the tune of about $400 million and then pay legal costs and fees.

The settlement was deemed by the court to be “fair, reasonable and adequate”.

In an unusual twist, the agreement is contingent on the upholding of a verdict in a July 2013 federal court ruling that Apple violated antitrust laws by orchestrating a conspiracy with five publishers to raise e-book prices. Apple is appealing the decision.

If Apple’s federal conviction is overturned, no money will be paid. In the case of a retrial, Apple will pay a reduced settlement figure. Apple declined to comment for this report.

“This settlement proves that even the biggest, most powerful companies in the world must play by the same rules as everyone else,” New York state Attorney General Eric Schneiderman said in June when the agreement was reached.

The case centers on Apple’s deal with the publishers as it introduced its iPad tablet, the varied uses of which included a challenge to Amazon’s Kindle electronic book reader.

The complaint, filed on behalf of consumers, accused Apple of working with five top publishers in 2009-2010 to set the prices of electronic books in an Apple-led effort to break into rival Amazon’s dominance of the market.

Their complaint was filed on the heels of July’s federal court verdict against the iPhone and iPad maker, finding Apple guilty of conspiracy to fix prices of e-books with the publishers.

The judge in the case issued an injunction barring Apple from any similar practices and ordered the company to work with a court-appointed monitor on compliance.

Prior to Apple’s entry into e-books, the publishers – all of whom have settled in the case – complained about Amazon’s $9.99 price for most titles.

Apple and the publishers agreed on contracts that let publishers set the price of most bestsellers at $12.99 or $14.99, but Apple won a provision that allowed it to match the prices of Amazon or any other retailer.

Energy crisis: Pakistan looking to form coal supply chain

Difficulties in arranging huge amounts of loans and regulatory issues have delayed the start of work by at least a year. PHOTO: REUTERS

KARACHI: 

Pakistan has started work on establishing a coal supply chain for various power plants in an attempt to address the country’s electricity shortage and reduce the reliance on expensive furnace oil, said an industry official on Saturday.

Coal, in the millions of tons, would have to be imported for power plants, which the government has been pushing investors to build in Punjab and other parts of the country.

But difficulties in arranging huge amounts of loans and regulatory issues have delayed the start of work by at least a year.

“I don’t know how long it takes but the fact is that circumstances require the addition of at least 10,000 MW based on coal,” said Aasim Siddiqui, managing director at the Marine Group of Companies, in a meeting with a group of journalists.

Marine Group is building a 12-million-tons a year terminal at Port Qasim to handle coal imports. It is also hoping to get into the business of transporting coal through rail.

Siddiqui said that the terminal, which should be completed by mid-2016, will be able to utilise its entire capacity.

“We are hoping to sell 5 million tons a year to cement plants, 3 million tons will be imported for K-Electric and another 5 million for two other power plants,” he said.

There have been concerns that while coal-based power plants are being promoted vigorously, not enough has been done to arrange for the transportation of coal.

But he said that Pakistan Railways has already issued a tender for purchase of 50 locomotives, powerful enough to move large shipments of coal.

Pak-China Economic Corridor

Siddiqui, who is also the All Pakistan Shipping Association (APSA) chairman, sees 7 million more containers passing through Pakistani ports once China starts using Gwadar port and road link via its neighbour. This is an increase of at least three times in existing traffic.

“Cost of doing business in China’s east coast region has gone up in recent years,” he said. “They are moving the industry to the western parts, which are closer to Pakistan.”

Trade traffic from Europe travels 19,000 miles to reach western China. However, the distance can be cut to 9,000 miles if Pakistani ports and roads are used.

China has been in control of Gwadar port for the past few years but it has hardly seen any activity.

“Even ports like Jebel Ali and Port Qasim remained dormant for 10 years. That shouldn’t be a concern. It takes time to woo the shipping lines but once they do then everything changes.”

As the APSA chairman, he said that he wanted to prepare the industry for the opportunities and challenges that lie ahead.

“Imagine the economic activity this amount of cargo will generate. Entire cities will prop up along the routes — there will be hotels, restaurants and petrol pumps. Cargo villages and other affiliated industries will come up,” he said

Lionel Messi: The greatest goalscorer and player La Liga has ever seen

COMMENT: The Argentine forward now leads the Primera Division's all-time scoring charts after surpassing a mark set in 1955. Spain's top-flight has never seen anything like Leo

By Ben Hayward | Spanish Football Writer

When Telmo Zarra passed away at the age of 85 in February 2006, his long-standing Liga goals record appeared unbeatable. Back then, Lionel Messi was in only his second season at Barcelona and had scored just seven times in La Liga. But eight years on, he has eclipsed the brilliant Basque and is now not only the Primera Division's greatest goalscorer, but also the finest footballer to ever grace Spain's top-flight.

Messi surpassed Zarra's magical mark of 251 Liga goals with his hat-trick in the 5-1 win against Sevilla at Camp Nou on Saturday and, at the age of 27, could go on to smash the record over the next few seasons at Barcelona. Even though he has adopted more of a playmaker role this term under Luis Enrique, there are plenty more goals still to come from the four-time Ballon d'Or winner.

Zarra watched Messi before his death, yet the legendary Athletic Club striker never witnessed the Argentine in all his goalscoring glory. Back then, Leo was a winger with plenty of promise, but far from the finished article.

It was in 2006-07 that the forward made the world sit up and truly take notice as he scored a carbon copy of Diego Maradona's famous World Cup goal against England by beating a series of defenders in a remarkable run and finish at home to Getafe in the Copa del Rey.

But it was in 2008-09 that his goalscoring really reached new heights as Pep Guardiola took over and the Catalan club went on enjoy the most glorious era in its entire history, amassing 14 out of a possible 19 seasons in four fantastic seasons. And Messi was the undoubted star.

Messi's scoring peaked in Guardiola's final campaign in charge as he netted 73 goals in 2011-12 and an amazing 50 in La Liga - still the highest tally managed by anyone over a single season in the Primera Division.

By then, the Argentine was operating in a central position after Guardiola and assistant Tito Vilanova moved Messi to a false-nine role in the 2009-10 campaign. "There were many 

games

 in which I thought 'this kid is one of the best we have and there are days when he is out there on the wing when we struggle to get the ball to him'. And I wanted him to participate [as much as possible], so we moved him inside."

And participate he did, playing a pivotal part in the team's extraordinary success during the Guardiola era. "Without Leo, we would be a very good team and we would be competitive," the Catalan coach said during his time at Camp Nou. "But we wouldn't have been able to achieve all that we have if he were not with us."

With 38, 47, 53 and 73 goals in his four full seasons under Guardiola, Messi also made his mark on the Liga scoring charts with 138 Primera Division strikes in that time. The Argentine added 46 more league goals under Tito Vilanova in 2012-13 and achieved the remarkable - and unprecedented - feat of netting against all 19 teams in La Liga consecutively.

"Leo scores a spectacular amount of goals," Vilanova said in 2012. "Sometimes you stop and think about the great, great players who score in seven or eight seasons what Messi scores in only one. And his are not normal goals either - most of them are wonder goals."

Even in an injury-interrupted 2013-14, Messi managed 28 more in La Liga under fellow Rosario native Gerard Martino and his 10 strikes in the Primera Division this term have seen him surpass Zarra to become the competition's greatest goalscorer.

"The fact that the record has stood for so long (since 1955) gives you an idea of what Zarra was," said Jose Angel Iribar, former Athletic goalkeeper and a friend of the former Spain striker. "Zarra was tall, svelte and fast. He was a very complete player, he was modest and he was humble. Up there, wherever he is, he would be proud that Messi has broken his record."

And the striker's daughter, Carmen, echoed those words. "My father would be happy. We are Athletic fans in my house, but he would have been thrilled. Messi is a noble person on and off the pitch."

Comparing different eras is always difficult and Messi has played in slightly more 

games

 than Zarra (289 to 277). Greats such as Alfredo Di Stefano and Ferenc Puskas also made an incredible impact in times gone by, while more recently the likes of Hugo Sanchez, Raul, Xavi and, of course, Messi's great rival Cristiano Ronaldo have pushed the boundaries of the impossible.

But with assists aplenty and so much more to his all-round game, Messi is surely now not only the greatest goalscorer La Liga has ever seen, but also the finest footballer in the competition's history as well. And he is far from finished yet.

Bayern, Chelsea, PSG, Real Madrid - which clubs could afford to buy Messi?

COMMENT: The Barcelona forward caused controversy this week as he hinted he may leave Camp Nou at some stage in the near future. Goal looks at the Argentine's possible suitors

Ben Hayward | Spanish Football Writer

Lionel Messi has created a storm. The Argentine attacker hinted earlier this week that his future may not be at Barcelona after all, alluding to severe criticism and "difficult times" at the Catalan club. And as news spread of the forward's frustrations at Camp Nou, Europe's top teams were placed on red alert. 

Key figures such as Messi's father Jorge, Barca president Josep Maria Bartomeu and team-mate Javier Mascherano have been quick to play down the possibility of the 27-year-old seeking a move elsewhere, butthe player himself has given serious thought to a future away from Barca.

As things stand, it still looks likely Leo will smooth things over at the club where he has spent over half his life since joining as a tiny but talented 13-year-old in 2000.

Nevertheless, Europe's elite will be watching with interest to see how the player's situation develops. But how many clubs could afford to sign the Argentine anyway? Several sides in Asia, such as rich Chinese club Guangzhou Evergrande, could probably meet Messi's massive €250m release clause, but the Argentine would want to remain in Europe at this point in his career. So here, Goal takes a look at the possible suitors if the four-time Ballon d'Or winner did decide to leave Camp Nou behind... 

BAYERN MUNICH

Messi's perfect partnership with Pep Guardiola brought the best out of both men, with 14 out of a possible 19 titles for the Catalan club between 2008 and 2012, as well as a host of records for the Argentine attacker and four consecutive Ballons d'Or.

Bayern have just paid off the Allianz Arena more than 15 years ahead of schedule and chief executive Karl-Heinz Rummenigge told the club's magazine: "The revenues from the Allianz Arena can soon be invested in the team."

That's ominous news for everyone else, but Bayern's head of finances Jan-Christian Dreesen told Sport Bild10 days ago: "We won't spend the amounts that clubs from southern Europe spend. We would rather invest in improving our collective strength than buying a megastar for €90 or €100 million."

Messi (who would probably cost more than that anyway, albeit much less than his current clause) is an Adidas athlete and a deal could potentially be struck with the sports manufacturer helping the German club to finance a transfer. However, spending such sums is against Bayern's principles in the transfer market and the Bundesliga champions would be unlikely to make a move - however much Guardiola would like to buy his former protege.  

CHELSEA

If you can't beat them, join them! Messi has traditionally found life tough against Chelsea and was famously called a diver by Jose Mourinho following the sides' Champions League clash at Stamford Bridge in early 2006.

The Argentine's style of football is also a million miles from the defensive tactics shown on occasions by the Blues on their visits to Camp Nou.

Nevertheless, this is a very different Chelsea team and Mourinho managed to convince Barcelona and Arsenal fan Cesc Fabregas to join the club last summer. So why not Messi?

Less of a big-spending side in recent years, Chelsea's income and the deep pockets of chairman Roman Abramovich mean a deal could be financed, while Messi's close friendship with Cesc (the players' partners are also very close and were together in London last week) could be another deciding factor. So perhaps the idea is less ludicrous than it first seems.

MANCHESTER CITY

One of the reasons Messi is less content at Camp Nou right now is the absence of a great friend in the dressing room following the summer departures of best Barca buddies Jose Pinto and Cesc Fabregas.

At City, he would link up with compatriots Sergio Aguero, Martin Demichelis and Pablo Zabaleta. The latter is one of Messi's best friends in football and the two have been close ever since they met at youth levels representing Argentina, while they also saw a lot of each other when the defender played in Barcelona for Espanyol.

City coach Manuel Pellegrini is a big admirer of Messi and the club would love to make a statement of intent by bringing in the four-time Ballon d'Or winner.

However, given their recent fine for infringing Financial Fair Play regulations, City would need to sell several star players or raise significant income in terms of sponsorship before a move for Messi would be possible. 

MANCHESTER UNITED

Messi may have lost out to Cristiano Ronaldo in the popularity contest this week at Old Trafford, but that's because the Portuguese is a former Manchester United favourite and the Argentine is remembered for denying the club the Champions League title in 2009 and 2011.

Those fans would quickly change their tune if the possibility of signing Messi arose, but right now United are not even in the Champions League and a loss of revenue from Europe's premier club competition could hit them hard if they miss out on a top-four finish again this term under Louis van Gaal.

Executive vice chairman Ed Woodward believes the club - still one of the Europe's richest despite escalating debts - are still in good shape. "There is the feeling at the club that we have the start of something special," he said earlier this week.

However, United would need Champions League football to tempt Messi and also to pay for him. And with the club currently down in seventh place in the Premier League, there is no guarantee that will happen this season.

PARIS SAINT-GERMAIN

Paris Saint-Germain missed out on the summer signing of Angel Di Maria due to the Financial Fair Play regulations which saw the club fined €60 million by Uefa earlier this year.

Nevertheless, PSG officials did make contact with Messi's camp earlier in 2014 to discuss an extraordinary move from Barcelona to Paris and the Argentine attacker contemplated a deal before deciding to stay with the Catalan club following a visit to his former coach Tito Vilanova.

Although it is unclear how PSG could fund a deal for Messi, the capital club could be tempted to part company with several of their star names if it meant they could bring in the Barcelona forward.

The club's current icon, Zlatan Ibrahimovic, may look to leave if PSG move for Messi. The two men enjoyed a positive relationship at Camp Nou, but Messi's move to a central role ultimately spelt the end for the Swedish striker at Camp Nou. 

REAL MADRID

Asked if he would consider signing Messi from fierce rivals Barcelona, Real Madrid coach Carlo Ancelotti said on Friday: "There is always space for quality players in my team."

Madrid could certainly afford to buy the Argentine in a deal which would eclipse in controversy even the move for Barca winger Luis Figo back in 2000.

President Florentino Perez would love to produce a repeat of that transfer and poach Barca's biggest star, but knows that current club icon Cristiano Ronaldo would not take well to a possible move for Messi.

And in any case, the Argentine would not contemplate turning out for another team in Spain after spending the last 14 years of his life at the Catalan club - least of all the side's eternal enemy.

In Pictures: World's highest-paid athletes

oney in sport has become a huge talking point. Colombian footballer James Rodriguez recently became the fourth-most-expensive signing when Real Madrid paid almost $110m to Monaco to get his signature. Earlier this week, Rory McIlroy pocketed $1.6m for winning golf's Open Championship at Hoylake. Select european footballers are earning in excess of $340,000 a week. Forbes recently revealed a list of the highest-paid athletes in the world today. Here, we share the top 10 from that list.

View As Slideshow >> /Patrick Smith/Getty Images 10) Matt Ryan, NFL - $43.8m. Matt Ryan signed a five-year contract in the NFL with the Atlanta Falcons last year which was worth $103.75m. The figure included a $28m signing bonus and a $12m option bonus paid in March. /Clive Brunskill/Getty Images 9) Rafael Nadal, tennis - $44.5m. Spain's tennis star Rafael Nadal sits ninth on the list with earnings of $44.5m. Nadal had a astonoshing 2013 season where he went 75-7 and finished top of the rankings. /Rob Carr/Getty Images 8) Phil Mickelson, golf - $53.2m. Phil Mickelson picked up some extra dollars in sponsor bonuses after winning the British Open for the first time last year. He earns more than $40 million annually from appearances and endorsement partners, according to Forbes. /Michael Regan 7) Roger Federer, tennis - $56.2m. Roger Federer who holds the records for most singles Grand Slam wins (17) and career prize money ($81m). He has appeared in a record 25 Grand Slam finals, and 18 out of 19 between 2005 and 2010. /Ross Kinnaird/Getty Images 6) Tiger Woods, golf - $61.2m. Tiger Woods' comeback from back surgery has not gone according to plan as he failed to impress in the two tournaments this summer. However, the former top-ranked golfer is second on the list of most Major titles won - 14. /Stacy Revere/Getty Images 5) Kobe Bryant, NBA - $61.5m. Kobe Bryant managed just six games  in the 2013-14 season due to a knee injury but had the highest salary in the NBA for the fourth straight year - a whopping $30.5m, nearly $8m higher than any other player, according to Forbes. /David Ramos/Getty Images 4) Lionel Messi, football - $64.7m. Barcelona's Lionel Messi finished behind Cristiano Ronaldo in this year's Ballon d'Or award after winning it four consecutive times. In May, he signed a new five-year contract with the Spanish club which will pay him $50m annually. /Christian Petersen/Getty Images 3) LeBron James, NBA - $72.3m. LeBron James won back-to-back championships with Miami Heat and four MVP awards. Sales of his signature Nike shoes were tops among active players at $300m in the US last year, according to SportsOneSource, and his jersey was the NBA's best-seller. /Denis Doyle/Getty Images 2) Cristiano Ronaldo, football - $80m. Holder of the Ballon d'Or and an integral cog of the Real Madrid squad, Cristiano Ronaldo was voted the sport's most valuable player in the world in 2013 for the second time in his career. Real won the Champions League last season and the Portuguese has a record five-year contract worth more than $200m. /Al Bello/Getty Images 1) Floyd Mayweather, boxing - $105m. But the world's highest-paid athlete is boxer Floyd Mayweather who became the athlete besides Tiger Woods to earn $100m in Forbes' annual tally of the highest-paid athletes. Mayweather earned a guaranteed $32m for his May fight with Marcos Maidana.