Chapter 10: The Aftermath and Lessons Learned.
1. Picking Up the Pieces
By 2018, Dewan Group was no longer the industrial giant it once was. Its name, once synonymous with corporate strength, had become a cautionary tale in business schools and boardrooms across Pakistan.
Inside a small office in Karachi, Dewan Muhammad Yousuf Farooqui sat at his desk, flipping through old company reports. The glossy documents, filled with projections of a bright future, now felt like relics of a bygone era.
His son, Ali Farooqui, entered the room.
Ali: "Abu, I've been thinking… We still have Dewan Cement. Maybe we should focus on that and rebuild."
Yousuf (sighing): "Rebuild, yes… but do we have the resources? The trust?"
Ali: "It will take time, but we can recover. Look at what other companies have done after crises."
Yousuf leaned back, his eyes heavy with regret. He had always been a fighter, but this battle felt different.
---
2. The Market Reacts to Dewan's Fall
As Dewan Group faded, the market adjusted.
Lucky Cement and DG Khan Cement took over much of Dewan Cement's market share.
Hyundai and Kia returned to Pakistan, this time partnering with Nishat Group and Yunus Brothers, completely cutting Dewan Motors out of the equation.
The textile industry consolidated, with Nishat Mills and Gul Ahmed absorbing Dewan Salman Fibres' lost ground.
At a corporate seminar on business failures, an industry analyst, Farhan Agha, spoke about Dewan's downfall.
Farhan: "The lesson here is simple—growth without discipline leads to disaster. The Dewans expanded aggressively, but they didn't strengthen their financial foundation. They relied too much on debt and political connections."
A young businessman in the audience raised his hand.
Young CEO: "But sir, Dewan was a respected name. Could they have saved themselves?"
Farhan: "Possibly. If they had slowed down, focused on operational efficiency, and reduced debt, they might have survived. But their arrogance blinded them."
It was a harsh but accurate verdict.
---
3. The Banking Industry's Response
The financial sector in Pakistan also learned from Dewan's collapse.
In a meeting at the State Bank of Pakistan (SBP), senior banking executives gathered to discuss corporate lending risks.
SBP Official: "Dewan Group's default caused one of the biggest NPL (Non-Performing Loan) crises we've seen. How do we prevent this in the future?"
Bank CEO: "Stronger risk assessments. We need to scrutinize companies with aggressive expansion plans more carefully."
This led to stricter lending policies, making it harder for companies to borrow recklessly.
---
4. The Dewan Family – Divided and Dispersed
The family behind the empire also suffered.
At a gathering in their Karachi home, tensions were high.
Farooq Dewan: "I don't want to hear about business anymore. I've had enough. We lost everything because of greed."
Ali Farooqui: "Chacha, we have to move forward. We still have opportunities."
Farooq (angrily): "Move forward with what? You want to risk what little we have left?"
The family was fractured. Some members moved abroad, while others distanced themselves from business entirely.
---
5. Dewan Cement – A Final Attempt
By 2020, Ali Farooqui managed to negotiate a restructuring deal for Dewan Cement.
At a meeting with investors, he pitched a plan for revival.
Ali: "We may not be the largest anymore, but we can be the most efficient. Our strategy is to streamline operations and focus on quality."
Some investors saw promise, but many remained skeptical, given the Dewan name's tarnished reputation.
Despite this, Dewan Cement continued operating, though it never reclaimed its former dominance.
---
6. The Changing Corporate Landscape
By 2022, Pakistan's business environment had completely transformed.
Nishat Group and Lucky Cement were now the biggest players.
New business groups like Engro and Fauji Foundation were dominating industrial sectors.
The government had tightened regulations on corporate governance, making it harder for companies to use political influence the way Dewan Group once did.
At a panel discussion on business failures, a former Dewan Group executive, Saeed Anwar, was asked to reflect.
Moderator: "Mr. Anwar, do you think Dewan's collapse was inevitable?"
Saeed: "Not inevitable, but likely. They refused to adapt. Business is about survival, and they didn't evolve."
---
7. Final Reflections – A Lesson for the Future
In his Karachi home, Yousuf sat alone, flipping through an old newspaper.
The headline read:
"Dewan Group—From Business Empire to History"
A younger Ali entered the room, carrying a new business proposal.
Ali: "Abu, I think we should invest in something new—maybe technology or renewable energy."
Yousuf looked at him and smiled faintly.
Yousuf: "This time, we build wisely."
The Dewan name might never return to its former glory, but the lessons of its fall would live on—for them, and for future generations of entrepreneurs.
---
Conclusion: The Rise and Fall of a Business Giant
Dewan Group's story is one of ambition, success, and failure. It serves as a powerful lesson for businesses:
1. Sustainable growth is more important than rapid expansion.
2. Debt can be useful, but too much debt is dangerous.
3. Political connections may offer short-term gains, but they do not guarantee long-term success.
4. A strong business must evolve with market changes.
The fall of Dewan Group reshaped Pakistan's business environment, forcing companies to rethink their strategies.
The question remains: Could another business empire rise—and fall—the same way?