SRVI sets sights on global expansion, higher production

November 18, 2025 (MLN): Service Industries Limited (PSX: SRVI) shared a positive outlook in its latest corporate briefing, highlighting plans to expand into new global markets, broaden its retail product range, and significantly increase tyre production capacity heading into FY26.

SRVI management said the Group is targeting a stronger international footprint by tapping new export destinations for both tyres and footwear.

With existing reach in more than 50 countries, the company aims to deepen penetration in high-potential markets amid growing global interest in Pakistani-made industrial and footwear products.

The company also plans to broaden its retail product portfolio under the Servis brand to enhance resilience, diversify revenue streams, and capture untapped segments.

With a nationwide network of 284 outlets, the Group is continuing its transformation into Pakistan’s leading footwear retail platform.

A key highlight of the briefing was SRVI’s strategic focus on capacity expansion. Management disclosed that total tyre production is expected to increase from 1.6 million units in FY25 to 2.0m units in FY26, driven by new product categories and improved operational efficiencies.

The company is also expanding its tyre product line, including plans to add bias tyres for trucks and buses. Discussions are underway for manufacturing tyres for electric two-wheelers, though the company anticipates limited domestic demand in the near term.

Despite strong performance in 9MCY25 where the Group recorded more than Rs15.1bn in footwear exports and Rs17bn in tyre and tube exports management noted that future export sales will depend on global demand recovery.

A reduction in worldwide tyre production and softer demand trends in major importing regions may keep export growth moderate in the short term.

However, SRVI remains confident that new market development, product diversification, and improved cost efficiencies will support long-term export resilience.

SRVI reaffirmed its commitment to sustainability and cost efficiency, with plans to add 8MW of solar capacity at STPL and SLM.

The Group is also targeting a 7.5MW wind power project in 2026, while 44% of its retail network already runs on solar energy.

Looking ahead, SRVI emphasized three core strategic priorities centered on global expansion, retail strengthening, and capacity enhancement.

The company plans to accelerate its presence in international markets by developing new export destinations for both tyres and footwear, building on its already strong footprint across more than 50 countries.

At the same time, SRVI aims to reinforce its domestic retail presence through product diversification and the opening of new outlets under the Servis brand.

This strategy is designed to enhance portfolio resilience, attract a broader customer base, and create new growth avenues across the retail segment.

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