The document summarizes the rise and fall of the Dewan family business in Pakistan over several decades. It describes how the family migrated from India after partition and established a small shop in Karachi in 1948. Through hard work and investments, they built a large textile and sugar business with mills across Pakistan. However, the family also faced tragedy and illness. In the 1990s, the Dewans established a major polyester plant but faced opposition from competitors, leading to the death of Dewan Umar Farooque. Despite later success raising funds internationally, changes in tax policy by the government eroded the company's profits and competitiveness, contributing to its decline.

1. THE RISE AND
FALL OF DEWANS
A brief biography of family

2. PRESENTED BY
U s m a n R i a z
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3. EARLY HISTORY
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• The family migrated to Karachi soon after partition.
• every successful Pakistani business has had ties with
some pre-partition trading community. Memons,
Bhoras, Khoja Ismailis and Isnasheris, Chiniotis and
Punjabi Sheikhs.
• Dewans belonged to none. They came from India’s east
Punjab region of Patiala.
FROM PATIALA TO HARIPUR
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• Its believed a curse followed dewans as every success was
followed by tragedy.
• Dewan Khalid, the eldest son, died after a brief illness in 1958.
• Dewan Mushtaq himself did not live to see the family’s first
factory and passed away in 1968.
• Dewan Mushtaq’s wife, their second youngest son Noman, 30
and a daughter were on their way with some other family
members when the car crashed on the highway. The three of
them were killed.
CURSE THAT RUN IN FAMILY
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6. Dewan Umar Farooque
• he was 36 year old by the time he
took control of family interest and
business.
• He didn’t complete his studies he
had done only matriculation but
showed a great interest in business.
• major importer of second-hand
clothes and tea within a few years
Dewan Salman
• Was younger brother of dewan umar
and helped dewan umar in
eastablishing textile spinning units
in Kotri and Hyderabad.
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7. DEWAN BUSINESS RISE OF AN
EMPIRE
F i r s t s h o p
• in 1948 Dewan Mushtaq Sons, housed in a small shop at the North
Napier Road.
• August 7, 1970 Dewan Textile Mills, their first cotton spinning unit, was
held in Kotri.
• 1970-1978 textile spinning units in Kotri and Hyderabad.
• Dewan group also owned Pakistan’s largest sugar mills with a
production capacity of 5,000 tons in Thatta.
• DMG to embark on the most ambitious project — the largest polyester
stable fiber (PSF) plant.
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8. DEWAN POLYESTER
STABLE FIBER (PSF)
PLANT.
S a l s a b i l ( l a k e o f
p a r a d i s e )
• located in an isolated place called Hattar.
• spread over 140 acres.
• staff and executive housing colony including a
guest house and bachelors’ hotel.
• labour colony that included a sports centre.
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9. DEWAN POLYESTER
STABLE FIBER (PSF)
PLANT.
D e w a n ’ s d e c a d e o f w a r
• Little over three months after production
commenced, PSF producers called a meeting to
discuss the issue.
• Dewan Umar Farooque was already suffering
from heart complications.
• On April 8, 1992, he flew to Islamabad where
executives of another Lahore-based polyester
company met him at the airport and assured
him that they wouldn’t protest against the tax
exemptions.
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10. DEWAN POLYESTER
STABLE FIBER (PSF)
PLANT.
D e w a n ’ s d e c a d e o f w a r
• But later that day, the entire industry ganged up
against him. He suffered a cardiac arrest during
the meeting, succumbing a few hours later, not
living to see even the first financial statement of
his most cherished achievement.
• sales tax exemption till 1997.
• income tax holiday for nine years from the start
of production
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11. F i r s t b l o w t o
d e w a n s
• DSF’s competitors had won the first battle since they
could offset the tax on polyester fibre against what they
paid on raw material under the tax refund regime.
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12. C o m e b a c k o f
d e w a n s
• Despite the setback Dewan Umar’s eldest son Dewan Ziaur
Rehman decided that another unit would be added with a
capacity of 56,000 tons.
• For this to be done Unit II needed an investment of over
Rs2.5 billion.
• DSF went to international capital markets with Pakistan’s
first and only Euro Convertible Bond issue by a private
company to date.
• Citicorp International and Hong Kong’s Crosby Securities
came forward as underwriter and managers. Barclays, Bears
Stearns, Baring Brothers, Nomura International, Societe
General and others were part that deal.
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13. C o m e b a c k o f
d e w a n s
• Roadshows and meetings were held in Hong Kong, New
York, Boston, Geneva, Zurich and London.
• Bonds were floated on May 5, 1994 with an
overwhelming response from international investors.
The company easily raised $45 million.
• This feat propelled Dewans to the world stage.
• DSF had the second highest capitalisation at the Karachi
Stock Exchange, literally deciding the fate of the daily
index.
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14. S e c o n d u n i t i n
i t s w o r k i n g
• Production at the new unit began on June 15, 1995
following completion of work in a record 12 months.
This took DSF’s overall capacity to 108,500 tons, making
it the largest PSF producer in Asia — even ahead of
India’s Reliance. The unit also enjoyed tax exemption
including the income tax holiday till 2004.
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15. Tu r n o f t h e t i d e
• The noose around DMG’s fibre project was getting
tighter.
• One after another such policies were introduced by
successive governments of Pakistan Peoples Party and
Pakistan Muslim League-Nawaz that sales tax concession
was diluted.
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17. SECOND BLOW TO
DEWANS
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18. SALES TAX AND EXCISE DUTY
• The sales tax on the PSF was reduced to 10% and excise duty of 5%
was levied instead.
• move was specifically aimed at DSF as it eroded company’s profit.
• Hardest fiscal hit came in the 1996-97 budget as sales tax was imposed
on the textile industry. DSF customers were now asking for a tax
invoice. The company grudgingly relinquished its right to sales tax
exemption.
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“Your company has been methodically persecuted and placed into a
tremendous disadvantage compared to other PSF players,”
the company told shareholders in financial statements of 1995-96.
“All this is being done at the behest of competitors under
the lead of a so-called multinational origin company
which is famous in portraying itself as the most fair,
ethical and professional player,”
Second statement

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