By the mid-1990s, Dewan Group had transformed from a rising industrial conglomerate into one of Pakistan's most dominant business empires. Under the leadership of Dewan Muhammad Yousuf Farooqui, the group had made its mark in cement, textiles, automobiles, sugar, and finance. With strategic expansions, record-breaking profits, and a strong market presence, the Dewan Group became a symbol of corporate power and industrial success in Pakistan.
The 1990s and early 2000s were Dewan Group's golden era—a period of high growth, favorable economic policies, and lucrative investments. The company's cement and textile divisions, in particular, saw unprecedented expansion, solidifying the Dewan name as a household brand in Pakistan's business sector.
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The Cement Empire Expands
In 1995, Dewan Cement Limited became one of Pakistan's largest cement manufacturers. With two major cement plants—one in Hattar (Khyber Pakhtunkhwa) and another in Karachi, the company benefited from Pakistan's booming construction industry.
A Key Meeting at Dewan House
On a humid August afternoon in Karachi, the top management of Dewan Group gathered at Dewan House, the corporate headquarters.
Dewan Muhammad Yousuf Farooqui, dressed in a crisp white shalwar kameez, sat at the head of the boardroom table. His CFO, COO, and key executives were present, discussing the future of Dewan Cement.
CFO (flipping through financial reports):
"Sir, our cement production is at full capacity. Demand is skyrocketing due to infrastructure projects."
COO:
"We have an edge over competitors like Lucky Cement and DG Khan Cement. But to maintain dominance, we must expand."
Yousuf (leaning forward):
"Expansion is necessary, but we need funding. Cement is a capital-intensive business."
Finance Director:
"We can raise capital through bank loans and equity financing. The government is also offering incentives for industrial expansion."
Dewan Group quickly secured financing from banks, and in 1996, they expanded their Karachi cement plant, increasing production capacity by over 60%.
By 2000, Dewan Cement was supplying major infrastructure projects, including highways, dams, and housing schemes. Government contracts ensured steady revenue streams, and the company's profits soared.
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Dewan Salman Fibres – The Textile Revolution
While cement fueled infrastructure growth, textiles were Pakistan's economic backbone. Recognizing this, Dewan Group had acquired Dewan Salman Fibres, one of Pakistan's largest polyester fiber manufacturers, in the late 1980s.
During the 1990s, as global demand for textiles grew, Dewan Salman Fibres became a leading exporter of polyester fiber to markets in Europe, China, and the Middle East.
A Business Trip to Dubai
In 1997, Yousuf traveled to Dubai to negotiate a major export deal with international buyers. In a luxurious suite at the Burj Al Arab Hotel, he met with representatives from a leading Chinese textile conglomerate.
Chinese Executive (smiling):
"Mr. Dewan, China needs reliable fiber suppliers. We've seen your production quality. How much can you supply monthly?"
Yousuf (calmly):
"Dewan Salman Fibres can guarantee 10,000 metric tons per month, with room for expansion."
Chinese Executive (impressed):
"That's significant. And the pricing?"
Yousuf (leaning back confidently):
"We offer competitive rates and consistent quality. No delays, no compromises."
After intense negotiations, Dewan Group secured a multi-million-dollar contract, making China one of its biggest export markets.
By 2002, Dewan Salman Fibres accounted for over 30% of Pakistan's polyester fiber exports, competing with Nishat, Gul Ahmed, and Sapphire Textiles.
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Dewan Motors – The Automotive Giant
While cement and textiles were highly profitable, Dewan Motors became the group's crown jewel in the early 2000s.
With government incentives for local auto manufacturing, Dewan Motors partnered with Hyundai and Kia, launching assembly plants in Sujawal and Karachi.
A Game-Changing Deal with Hyundai
In 2001, in a grand conference room in Seoul, South Korea, Yousuf met with Hyundai executives.
Hyundai CEO:
"Pakistan's market is growing. Why should Hyundai trust Dewan Motors?"
Yousuf (smiling):
"Dewan Group has built Pakistan's largest cement and textile businesses. We know how to manage large-scale industries. Our distribution network is unmatched."
Hyundai CEO (nodding):
"Impressive. But local production is costly."
Yousuf:
"The Pakistani government is offering tax incentives and reduced import duties. This is the perfect time to enter."
After weeks of negotiations, Hyundai and Kia signed exclusive agreements with Dewan Motors, bringing the Hyundai Santro and Kia Spectra to Pakistan.
Within two years, Dewan Motors was selling over 10,000 cars annually, making it one of Pakistan's top automotive manufacturers.
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The Financial Success – Record Profits
By 2003, Dewan Group had reached peak financial success:
Dewan Cement: Supplying Pakistan's largest construction projects.
Dewan Salman Fibres: Dominating textile fiber exports.
Dewan Motors: Competing with Suzuki, Toyota, and Honda.
A Record-Breaking Annual Report
At a corporate gala at Marriott Karachi, Dewan Group executives celebrated their best financial year yet.
CFO (raising a toast):
"Ladies and gentlemen, Dewan Group has crossed PKR 30 billion in revenue this year! Our businesses are thriving."
Board Member:
"In just a decade, we've become a Pakistani industrial giant!"
Yousuf (smiling):
"This is only the beginning. We're building an empire that will last for generations."
Amid applause and celebration, no one foresaw the challenges that lay ahead.
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The Warning Signs – Cracks in the Empire
Despite its success, Dewan Group had expanded rapidly, relying heavily on loans.
By 2004, analysts began warning about rising debt levels and the risks of over-diversification.
During a tense board meeting, the Finance Director issued a warning:
Finance Director (serious tone):
"Sir, our loans have exceeded PKR 15 billion. We need to slow down expansion."
Yousuf (firmly):
"Success requires risk. We're making money, and banks trust us."
COO:
"But if interest rates rise, debt repayment could become a challenge."
Yousuf (waving it off):
"We'll manage. The economy is booming."
This overconfidence, while understandable in a period of success, would later prove costly.
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Conclusion – The Height Before the Fall
Between 1995 and 2005, Dewan Group was at its peak, dominating cement, textiles, automobiles, and finance.
However, beneath the surface, rising debt and over-expansion were setting the stage for future challenges.
At its height, Dewan Group symbolized industrial ambition, risk-taking, and success. But as history has shown, even the greatest empires can crumble if caution is ignored.
As the new decade approached, Dewan Group would soon face financial crises, political turmoil, and market changes that would test its survival.