The industrial heartbeat of Pakistan was growing stronger, and at its core lay a vital industry—cement. As the country embarked on massive infrastructure and housing projects in the late 1990s and early 2000s, Dewan Group saw a golden opportunity to expand its empire further. Cement was no longer just a business; it was the foundation of Pakistan's future.
The Big Acquisition
In the grand conference room of Dewan Group's Karachi headquarters, Dewan Muhammad Yousuf Farooqui sat at the head of the table, surrounded by his senior executives. A thick file lay in front of him—an acquisition deal that could change the fate of Dewan Group.
Yousuf (looking at the document): "Gentlemen, today we take a step towards securing our position in Pakistan's construction industry. Dewan Cement is about to be reborn."
Aslam Siddiqui (COO): "Sir, acquiring Pakland Cement is a bold move. It has potential, but its financials have been weak for years. Are we ready for this challenge?"
Yousuf (smiling): "A challenge, indeed. But opportunity never comes without risk. We have the expertise, and Pakistan's construction sector is booming. We will modernize the plant, improve efficiencies, and make Dewan Cement a force in the industry."
The decision was made. In 2004, Dewan Group officially acquired Pakland Cement, renaming it Dewan Cement Limited. The acquisition included two cement plants—one in Karachi and another in Hattar, Khyber Pakhtunkhwa. This move positioned Dewan Cement as one of the largest cement manufacturers in Pakistan.
Expanding Production
Soon after the acquisition, modernization efforts began. At the Dewan Cement plant in Karachi, engineers and workers were busy installing new machinery. Yousuf visited the site with his technical team to assess progress.
Plant Manager: "Sir, we're replacing the old kiln system with a more efficient dry-process technology. This will increase our production capacity by 50% and reduce energy costs."
Yousuf: "Good. We need to be competitive with Lucky Cement and DG Khan Cement. They've already expanded. We can't afford to lag behind."
Engineer: "With these upgrades, we'll be able to produce over 2.5 million tons of cement annually."
Yousuf (nodding): "That's what I like to hear. Quality and quantity—both are essential for our success."
Within two years, Dewan Cement was producing at full capacity, supplying cement to some of the biggest projects in Pakistan, including roads, bridges, and housing societies.
Competing with the Giants
The cement industry in Pakistan was fiercely competitive. Market leaders like Lucky Cement, DG Khan Cement, and Fauji Cement had already established strong distribution networks.
In a high-stakes business meeting at a five-star hotel in Lahore, Dewan Cement's top executives sat down to strategize.
Aslam Siddiqui: "Lucky Cement has a massive export market. DG Khan Cement has government contracts. We need a differentiating factor."
Yousuf: "We'll focus on innovation and cost-efficiency. Lower energy costs, better distribution, and aggressive marketing. We have an edge in Karachi and Sindh—let's strengthen our market share there first."
Marketing Head: "We can also promote our cement as environmentally friendly. Green construction is becoming a global trend."
Yousuf (smiling): "Excellent. Let's brand ourselves as Pakistan's future in sustainable construction."
With an aggressive marketing strategy, Dewan Cement soon became a major player, securing contracts for mega projects, including flyovers in Karachi, commercial plazas in Lahore, and housing developments in Islamabad.
The Boom and the Struggles
By 2007, Pakistan's construction industry was at an all-time high, fueled by economic growth and foreign investment. Cement demand soared, and Dewan Cement reaped the benefits. But success came with new challenges.
Finance Director: "Sir, international coal prices are rising. Since cement production relies heavily on coal, this will increase our costs."
Yousuf: "We anticipated this. Have we secured long-term contracts with coal suppliers?"
Finance Director: "Yes, but the industry as a whole is facing rising costs. If the rupee devalues further, imported machinery costs will also increase."
Yousuf (leaning back, deep in thought): "We must prepare for economic volatility. Cement is a long-term business. We need to diversify revenue streams—maybe explore exports."
Despite the challenges, Dewan Cement continued to thrive. However, cracks in Pakistan's economy were beginning to show.
The Downfall Begins
In 2008, Pakistan's economy faced a severe downturn. The global financial crisis, coupled with political instability, led to declining investments in construction. Major projects were delayed or canceled.
At Dewan Group's headquarters, an emergency meeting was called.
Aslam Siddiqui: "Sir, cement demand has dropped significantly. Our warehouses are full, but sales are slow."
Yousuf (sternly): "Cut down production temporarily. We need to preserve cash flow."
Finance Director: "Sir, our debts are piling up. If this continues, we might struggle to pay off loans."
The crisis deepened. By 2010, Dewan Cement was struggling with liquidity issues. The banks started tightening credit lines, and competition from bigger players like Lucky Cement became fiercer.
Bank Representative: "Mr. Yousuf, your company's debt restructuring proposal has been rejected. The financial health of Dewan Group is concerning to us."
Yousuf: "We've invested heavily in modernization. The industry will rebound—Pakistan still needs cement for its infrastructure projects."
Bank Representative: "Perhaps, but as of now, your cash flows don't support further credit."
By 2012, Dewan Cement was forced to sell off key assets to stay afloat. The empire that once promised to dominate Pakistan's construction industry was now struggling for survival.
Legacy of Dewan Cement
Despite the setbacks, Dewan Cement's impact on Pakistan's construction industry remains undeniable. It played a crucial role in modernizing cement production and creating jobs. Though the Dewan Group's control over cement weakened, the company survived under new management.
As Yousuf looked out from his office window, he reflected on the journey.
Yousuf (to himself): "We built something great. Even if we no longer control it, Dewan Cement will always be a part of Pakistan's growth."
Author's point of view.
Thus, the story of Dewan Cement is one of ambition, resilience, and the harsh realities of business—a reminder that even the mightiest industrial empires can face challenges beyond their control.