Ajinomoto Co., Inc. to Make a Full-Scale Market Entry in Pakistan Establishment of Joint Venture Company with the Lakson Group and Start of Import and Sales of Seasonings in July 2016

TOKYO, April 6, 2016 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) will make a full-scale market entry in Pakistan. In July 2016, Ajinomoto Co.’s wholly owned subsidiary Ajinomoto SEA Regional Headquarters Co., Ltd. (“ARH”) will establish Ajinomoto Lakson Pakistan (Private) Limited, a joint venture with leading local conglomerate the Lakson Group, in the City of Karachi, Islamic Republic of Pakistan (“Pakistan”), and start import and sales of seasonings. Capital will be PKR 1.0 billion (approximately JPY 1.2 billion), with ARH holding 85% of equity.

Ajinomoto Co. has conducted export sales of umami seasoning
AJI-NO-MOTO^® to Pakistan since the 1970s. It established a liaison office in the City of Lahore,^※ Pakistan in July 2014 and has been conducting local surveys in anticipation of a full-scale market entry. Pakistan’s population is approximately 180 million (as of 2013), and with the large number of young people, the population is forecast to increase to 310 million in 2050 (United Nations estimate). The proportion of meals consumed at home is extremely high, and lentil (dhal) dishes and vegetable stews are routinely eaten. Backed by these conditions, Ajinomoto Co. decided to enter the seasonings market, where it can utilize its strengths, particularly in the fields of flavor seasonings and menu-specific seasonings. Having determined that an alliance with a local company would be effective in rapidly establishing a business foundation in Pakistan, Ajinomoto Co. decided to establish a joint venture company with the Lakson Group. A business group with strong capabilities for distribution to 180,000 retailers nationwide and a solid network of wholesalers with regional roots, the Lakson Group also has experience in joint venture businesses and alliances with multinational companies.
※ Capital of Punjab, the most populous province of Pakistan

Ajinomoto Lakson Pakistan (Private) Limited will be headquartered in Karachi, Pakistan’s largest city, and for the time being will import halal-certified seasonings from PT Ajinomoto Indonesia for sale in Karachi. By expanding its sales area in stages, the company will aim for net sales of PKR 1.1 billion (approximately JPY 1.3 billion) six years after the start of sales.

The Ajinomoto Group has made the opening of new markets in Islamic countries by the overseas consumer foods business one of the strategies of its FY2014-2016 Medium-Term Management Plan. Pakistan is located between ASEAN and the Middle East, and building a business foundation there has an important strategic significance for the Ajinomoto Group. As it contributes to local lifestyles with delicious, easy-to-use seasonings that utilize its technologies, Ajinomoto Co. will accumulate information on the consumers and market of Pakistan as well as establish a sales network through the joint venture with the Lakson Group, and will continue to develop products suited to the region.

The Ajinomoto Group aims to be a genuine global specialty company that contributes to well-being through providing more delicious, higher-quality products adapted to local food cultures and customs.