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The joint venture will have exclusive rights to the sales and distribution of TFS Corporation’s sandalwood products in the Middle East, North Africa and Pakistan, a Press statement said.
The agreement covers the establishment of a local joint venture company —with EIG retaining 51 per cent ownership and TFS 49 per cent — governed by a board comprising representatives of each party, which will be granted the exclusive distribution rights of TFS and Mt Romance products in the region.
The company plans to utilise TFS’s sandalwood oil to manufacture and distribute an extended range of value-added sandalwood-based products that are widely used in the region and the sub-continent.
“The strategic alliance forged between EIG and TFS through the formation of our JVC will be value-accretive for our companies and will also offer excellent value for consumers. EIG’s unmatched distribution system in the chosen regions will open the door to a huge market for products derived from TFS’s high quality sandalwood oils, which rank among the world’s best,” Raza Jafar, Vice-chairman of EIG, said.
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