Chapter 17: Cracks in the Empirel.
By the late 2000s, Dewan Group stood as a towering symbol of industrial might. The group had cement, textile, automotive, sugar, and banking units under its wing. Dewan Yousuf Farooqui had achieved what few in Pakistan could: a conglomerate that rivaled even the likes of Nishat and House of Habib in scope. But beneath the towering offices and endless assembly lines, the empire was beginning to strain under the weight of its own ambitions.
Scene 1: Boardroom Dissent
Location: Dewan Group Headquarters, Karachi - 2009
In a glass-encased boardroom on the top floor, Dewan Yousuf sat at the head of the table, surrounded by directors and key advisors. His son, Dewan Omar Farooqui, sat to his right, eyes scanning a pile of quarterly reports.
Omar: "These numbers from Dewan Automotive... they're troubling, father. Sales are down 40% year-on-year. We can't keep blaming market conditions."
Yousuf (calmly): "And yet market conditions are exactly what's squeezing us. Imported used cars, unclear policy from the government, and an unstable rupee. These are not mere excuses."
Najeeb Sohail, the CFO, chimed in.
Najeeb: "If we don't restructure our debts now, we'll breach our obligations by Q3. The banks are growing nervous. UBL and NBP have sent feelers about possible collateral adjustments."
Omar (raising his voice): "Why did we keep expanding when we couldn't consolidate? The acquisition of Pakland Cement in 2004 stretched our liquidity. Now look — Dewan Cement is underperforming while DG Khan and Lucky Cement are eating our market share!"
Yousuf narrowed his eyes at his son. He wasn't used to this kind of challenge, especially not from family.
Yousuf (firmly): "You speak like an outsider, Omar. We don't build an empire by shrinking back. You think Nishat never faced losses? Or Saigol Group?"
Silence fell. The weight of legacy versus financial prudence hung in the room like a thick fog.
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Scene 2: The Banks Close In
Location: State Bank of Pakistan, Karachi - 2010
Behind closed doors at the Banking Policy Department, senior regulators debated Dewan Group's ballooning liabilities.
Sana Irfan, Deputy Director: "The group's exposure is well over Rs. 40 billion now. Their Non-Performing Loans are piling up. It's only a matter of time before the defaults spread across their divisions."
Aftab Malik, an industry veteran from NBP: "Dewan Cement's plant in Hattar has already stopped operations once this year. Dewan Textile is behind on utility bills. We must consider invoking legal recovery processes."
Back at Dewan Group, letters from banks demanding restructuring terms began arriving daily. The once-feared industrial titan now found itself cornered.
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Scene 3: Family Rift
Location: Farooqui Family Estate, DHA Karachi - 2011
Tensions ran high as the Farooqui family gathered to discuss the crisis. The eldest daughter, Saira Farooqui, who ran the family's CSR wing, voiced her concern.
Saira: "You can't sacrifice our name just to chase industrial dreams, Baba. People are suffering — workers have gone months without salaries."
Yousuf (exhausted): "You think I don't care? I built all of this with my own hands. My name stood for progress when the country had nothing."
Omar: "Then let us save what we can. We can sell off some assets, reduce debt, and stabilize."
Yousuf stood up abruptly.
Yousuf: "Never! We are not sellers. We are builders."
The room fell silent again. In that moment, the patriarch's words felt less like resolve and more like denial.
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Scene 4: The Crumbling Foundations
Location: Dewan Salman Fibres, Hattar Industrial Zone - 2012
What was once a flagship unit had become a cautionary tale. Power shortages, outdated machinery, and debt defaults had slowed operations to a crawl. Workers loitered, shifts were cut in half, and suppliers demanded cash payments.
Manager Waseem Khan to his supervisor: "We had 3,000 workers here at our peak. Now we're running barely a third of that."
Supervisor: "No raw material deliveries. No funds cleared from head office. What do you expect?"
Meanwhile, newspapers ran headlines like "Dewan Group On Brink of Collapse" and "Banks Seek Court Intervention in Dewan Loan Cases."
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Scene 5: Turning to the Courts
By 2013, litigation was in full swing. Multiple banks, including NIB Bank, National Bank, and others had filed suits in banking courts.
Scene inside Sindh High Court
Justice Faheem Siddiqui: "Mr. Farooqui, you're here not as a business leader but as a defaulter. Do you understand the gravity?"
Yousuf Farooqui, looking noticeably aged, replied softly: "Yes, My Lord. But I urge the court to allow us to present a revival plan."
Counsel for NBP: "They've been promising revivals for five years. Our clients cannot wait on hope."
The court granted some leeway — barely.
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Scene 6: Legacy on the Line
Location: Private Dinner, 2014
Yousuf sat alone with Omar, overlooking the sea from their Clifton residence.
Yousuf: "You know, I once dreamed of building Pakistan's own General Motors. Of launching a car designed by our engineers."
Omar: "You did more than most, Baba. But maybe now, it's time to preserve what's left. We can't carry the weight of the entire empire."
Yousuf looked into the distance.
Yousuf: "When the winds change, it's not the strongest who survive, but the ones who adapt. I failed to see the change. That's my burden."
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Conclusion:
Chapter 17 marks a significant turning point — a shift from ambition to reckoning. Dewan Group's cracks were not just financial; they were rooted in leadership fatigue, over-expansion, internal disagreements, and a stubborn adherence to legacy over practicality.
As court cases mount and banks grow increasingly rigid, the once-glorious Dewan Group finds itself fighting not just for solvency but for survival. For the first time, even the family begins questioning the direction and wisdom of the empire's founder.
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Questions for the Reader:
1. Do you believe legacy businesses can survive modern market demands without evolving?
2. Should family members in conglomerates always defer to the founder, or is there merit in younger voices taking the lead?
3. Could Dewan Group have survived had they taken a different turn earlier — such as downsizing or merging with other conglomerates?
4. What role should the government and banks play when an industrial giant faces collapse due to mismanagement? Farooqui Family Estate, DHA Karachi - 2011