Why not Starlet, Vitz, Platz type vehicles imported by these tycoons. Come , WTO restrictions lifted and we will have flood of Indian cars. Then how would the government provide protection to Atlas Honda and Indus Motors?
The Govt. I guess hussain u are right it is GOD's curse on this group as each car they have launched has failed in market we have example of mitsubishi, classic, spectra, santro, sportage etc.
Market research and analysis is carried out by every company and different segments are identified. Some segemnts are profitable, some are for niche market and some are only for comapany imge though they are never profitable.
In case of Deewan Motors, same is the case. Santro and classic are quite profitable segments. Sportage and spectra could be graded as for niche market as there is a considerable market share by SUVs and sedans in Pakistan. Sonata is to compete for Camry, Accord, Cefiro and Gallant by different manufacturers. Coupe will try to tatget rich and young at heart as the only sports car available in market. Yes, Dewan's vehicles are the most over-priced local vehicles.
But there's a great misconception regarding the WTO in our country. WTO doesn't require the member countries to bring their tariffs and taxes to zero level. And it isn't going to come in Our car market dynamics are going to maintain the status-quo in the foreseeable future, unfortunately. We need more and more local assemblers with enhanced capacity to bring in competition and timely deliveries. Spectra was a segment of its own. Sportage was also first of its kind.
Santro was a very good alternative for Cultus, Mehrtan, Alto etc. Shehzore took the market by storm and it was well matched with requirements of transporters.
Grace van was laos good in its class. But for last three years or so they have formed part of tha Cartel that our industry actualy is. Every decisiona nd launch is showing the same. They are making some big blunders around, lets see where they land with there santro and Shehzore. As the brand did not have a unique offering or a clear promise, it could compete against the superior rival brands Ehsen, The deception was not intentional, but the brand tried to rely on its advertising rather than making an effort to improve quality.
Kia Spectra failed as an affordable small car as it was low on safety and reliability and had an unexciting design element. The repair and maintenance cost of all Kia cars was high in Pakistan Rankings and reviews, Vendors like Kia, Hyundai, Nissan and Adams a Pakistani brand suffered heavy losses on the tooling of their parts as most equipment manufacturers chose to diversify into other more profitable segments.
The Spectra re- launched by Kia has undergone a dramatic redesign Motortrend, The stretched longer version was for Asian markets and also failed. All Kia cars were assembled under license by Dewan Motors and were deceptive and compromised on quality. Adams Motor Company was a Karachi based Pakistani automotive assembler that was the first to produce a locally assembled car Revo fitted with a Chinese engine and transmission Wikipedia, The car had a cheap plastic interior and disagreeable looks.
It was a clear case of deception and the brand may have survived as it was 10 to 15 percent cheaper than other local competitors, namely Mehran cc which dominates the Pakistani market Hasan, Suzuki is associated with producing low cost, economically affordable, compact cars for the masses.
The company discontinued Baleno when it launched Liana in The car did not have any unique selling proposition. It had an unimpressive ride and the market could relate to it as a luxury car.
Hussain, The luxury segment is clearly dominated by Toyota and Honda. Plus, Suzuki only actively promoted its CNG version rather than the petrol one. The customers felt deceived into the bargain as the car did not even have much resale value. This fairness cream, targeted at the females of the lower middle income segment, was positioned as an affordable cream. Introduced by Kohinoor Chemicals in s, the brand has now turned stale with virtually no mass advertising, no significant shelf presence and has a low and silent turnover Sohail, Tibet Snow is an example of a tired brand that was never revitalized.
A change in packaging and a new aggressive advertising campaign or repositioning could have significantly re-energized the brand. No effort was made to remove the negative perception that developed over time that the beauty cream had dangerously high levels of mercury. GSK launched its famous and successful global brand Horlicks in Pakistan with a genuine malt flavour.
The brand itself was not well received by the masses in Pakistan due to its malt based flavor. GSK did not conduct any pre-launch research, post launch study or marketing at the time of launch which resulted in lower sales and consumer response than expected. Pepper Snapple Group.
It was popular in Pakistan in 70s and 80s. The beverage came under tremendous competitive pressure from Coke and Pepsi in the 90s and also faced several international lawsuits. Consequently, the company withdrew its investments from Pakistan. Ali et al. The company did not focus on its promotional campaign when Pepsi and Coke stormed into the market and bombarded the industry with heavy advertising.
They did not change the shape and size of the bottle either. RC Cola ruled the roost when there were no other colas in the market but with the onslaught of competition and lawsuits the company became paranoid and was flushed out of the market. Anyone who spent their teens or childhood in Karachi in the 90s, must still remember the magic of Mr. Even though Hanifia and Chips were contenders they were no match.
All burger loyalists flocked Mr. Burger tried to add to the menu with donuts, brownies, hot dogs and rolls and renovated its outlets several times it could not prevent its grip slipping away on the market. This move backfired and cost the brand its loyal customers. The new campaign is unique in its desperate measure of offering a money back guarantee option in case of dissatisfaction.
The company had a market share of 8 percent in which declined to 4 percent. Tetley in Pakistan has failed to do well despite its established presence in UK since The cultural phenomena cannot be ignored.
Tea industry in Pakistan has two key segments, urban and rural and the product has traditional links. The company succumbed to the two leading giants, Unilever and Tapal. The urban segment will adapt to the changing dynamics of tea consumption but the rural segment will continue to retain its preferences. The Pakistani market could not relate to orange or strawberry flavored hot beverage, unlike UK where tea does enjoy a preference over coffee. Tetley internationally has a trendy positioning targeting the younger segment that is lively and upbeat.
The brand did not try to relate to the local consumer till as of late. It failed to keep its execution and ideas local Moeen, Hence the brand had been irrelevant to the needs and preferences of the local consumers here. RIN, a product of Unilever, had primarily been introduced as a laundry detergent bar in Pakistan in April The product was specially formulated and promoted as a fabric washer but was in fact being used for dishwashing.
It was the only non-soap detergent NSD bar in the market Suvashish, The users associated blue color with dishwashing based on their past experience. In , RIN was launched as a detergent in powder form like Surf and Sunlight, offering whiteness and fragrance. This was a classic example of brand irrelevance where the company had to bow down to the wishes of customer preferences. The company did not adopt the technology adopted by its rivals Ufone, Mobilink, Warid and China Mobile.
The Pakistan Telecommunication Co. PTCL launched its state of the art technology Integrated Service Digital Network ISDN in all the major cities of the country, featuring faster, clear voice, fax communication, video images, video conferencing, high speed data transfer, graphics etc.
The company did not realize that the analog line of ISDN is dependent on the AC power and a power outage disrupts the internet connection as well as voice connection. Given the power crisis in the country, the technology was not applicable here in Pakistan.
Sabun , a translucent laundry soap bar, fizzled out with the emergence of detergent powders. Laundry soap bars were meant for hand wash only. The technological shift towards machine wash and the changing lifestyle with housewives doing their own laundry instead of maids led to the phasing out of the brand. We all admired the very well written research. Regarding hiring professionals i think Late Mr Umar did his metric when he joined the business.
He did not learned how to do business from any business school. I think experience is the biggest teacher you can have in a country like Pakistan. Today we all know Dewan as one of the biggest defaulter because the mistake they made was reinvesting whatever they had in Pakistan. They did not transferred there wealth abroad.
There mistake was not that they did not hired highly payed professionals but they gave jobs to people who were needy,who did not had any financial support or reference from any political leader for a job. They wanted the people of this country to benefit.
This was one of the few groups of Pakistan who gave loan to the Government of Pakistan when the country was is need during the Nuclear test done by Nawaz Sharif. If they had given half of that loan to the politician as bribe they would have been in a better position today. That was the mistake they made.
The biggest difference in Pakistan and our neighboring country is that there is no support from government. Rather they try to bring everyone down who is doing big. Finally i think Dewan has the potential to bounce bag and very soon Insha Allah we will all see this Group in its old postion. Indeed a very good read, well researched.
I remember once a traveled to Badin and on the way we stop over to Sujavel for friday prayers that was inside the beautiful housing compound of Devan. Extremely well written article! The research was in-depth with selective words chosen in making this article so interesting and the reader gets so deeply involved, that without pause, read the entire article till the end.
The whole story has one lesson; can Pakistani businessmen one day get out of the chuckles of our politics and SROs. If we cannot make 'billionaires' in Pakistan, then we can never have a strong manufacturing based economy. Once again congratulations to the writer. ET is doing a wonderful work, well done. Its moreover a political backstabbing then any lack of business sense.
Chachoo: trust me chacho, they got more professional opinion then any other group in pakistan. The research was in-depth with selective words chosen in making this article so interesting that the reader gets so deeply involved, that without pause, read the article till the end. ET is doing wonderful work, well done. Their life story shall be translated into a movie kinda like wolf of wall street for our future generation to follow and take examples and also for our people to support and appreciate the hard work people have put in.
An inspiration that even when being in the eye of storm , the courage and perseverance of the man is still standing high to rebound and remake the history.
I only had a limited working exposure with them, for a services contract done in the period , when maybe when they were booming with more and merrier, so good to know what was happening before, then and later behind the scenes. A sad story of a big business owner family who did so well after migrating but suffered at the hands of politicians later on.
It seems being politician is the guarantee to be a successful businessman to safeguard their interests that what lacked in Dewan group case i guess.
Very well written, but the the writer should clearly state which politician from sindh made the demands. This is a very well written and thoroughly researched article.
Would like to see more on different families and communities! Very well written article and in depth analysis of the Group's rise and Fall. I have been working in this company for 11 years and it was probably the best organization.
Dewan Yousaf had a vision and was persistent and still is persistant in getting back to his feet. May ALLAH give him the strength to fight back and make him realize that who is faithful and who is not.
This article is written after proper research. I like the article and the history of Dewan Group. I came to know about is past, present and future endeavors. Would be great if you could name the politician from Sindh who asked him for the handover. I agree completely with Nasir Jardan about the competent leaders in the industry part.
This is probably the biggest success factor in US and other business communites around the world. But I have to say here that this is the norm in Pakistan and the politicians played an important role in bringing down this group. The biggest problem as I see it is the group was protected from the start with tax exemptions and grew under protectionist measures. The company was not efficient in terms of making profits while following the same competition as all other companies in Pakistan do.
This holds true for other companies and groups in Pakistan as well. The government needs to regulate an environment in which all of the companies and groups are subjected to the same competition. However having said that the government also needs to put its nose out of the workings of the companies and politicians with all their connections do not need to poke in the business.
This is a shameful act on behalf of the politicians and I am very much sad about how Dewan's were asked to handover the sugar mills excluding the debt.
Wishing well for this group and for Pakistan. I hope they will get back into the prime state they were in before. Saad: I must say that I have never read such well written case study of the rise and fall of a Pakistani Conglomerate. A lot of credit also goes to express tribune to get this published.
Reading the case study reminded me of giving Dewan's Cement Aquisitions as an overtrading example to the MBA students but had never imagined that it would happen so quickly!! A very good article We do need good write up about the business leaders of Pakistan. Classic reason of huge unemployment in pakistan. Business are discouraged by politicians, governments, banks, talibans, extortion mafias, political and non political gundas.
I fully believe that the Dewan's would rise despite the deceits of mir jaffars. I think he joined the TJ and was an active member. He refused to accept bank loans on interests too! I first thought why do I care about Dewans or other businesses; Pakistani business community lacks sense and honesty.
Similarly, political parties don't elect competent leadership only famiky members become CEOs. It is like a norm there in Pakistan. I believe there are ways to shore up some revenues for Dewan group. We have done it here in the US but things in Pakistan is that people there are not honest.
And where honesty and integrity is missing people are reluctant to help. The owner is a major share holder but doesnt need to interfere in management, can hire CEO, give them time and set reasonable, achievable goals. However, even this piece could have been a lot more meaningful if we could know the happening between and ! I personally know the whole family and infact have grown up watching their success. To begin with, big on welfare and philanthropy! They are honest and patriotic. I wish them all the best.
What the point of you story it is good story but what it's trying to accomplish. From this article, it would appear that Dewan Group suffered an acute case of hubris, hence, their efforts to expand using debt financing.
In other countries, such companies suffer when interest rates change or there is glut in the market from some other manufacturers. In this case, it looks like Dewan's tread on too many toes and were made to pay the price. Also as the writer mentions, they were the outsiders when compared against the other main industrial groups ethnicity. An influential politician in Sindh had asked Dewan Yousuf to handover the cement company and sugar mills — excluding the debt.
A very well-written and well-researched story. It was fascinating to read. Really not what you'd expect given the quality of write-ups in ET in general.
If i would be a businessman with an Annual turnover of Million US Dollars while my profit will stood at around 5. Their demise was actually started with declining profits and lower gross profit margins but nobody warned them and they did not foresee at all But for a migrant family from a small village near Patiala Punjab who came with nothing and then they established a huge business group in Pakistan is infact a great feat in my view.
The real problem with the business families in our country is simple. They dont want to hire competant CEO and Directors rather their sons and daughters are destined for top positions and the same thing happened with Dewan family and now we can see the outcome. I have very limited knowledge of the Dewans' businesses, but had first hand knowledge of their social philanthropy in Hyderabad Sindh.
The family was impressed by the services provident by the late Prof A K Abbasi and acceeded to his request to establish a CCU there, which bears the name of late Deean Mushtaq. Also the Dewans almost singlehandidly financed the first ever international Cardiology Conference in Hyderabad. I had a front row seat to these two ventures, and know how it has helped Sindh, and thank them for it, and wish them well.
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A year later it announced its first net loss ever recorded. Dewan Ayub Khalid Madni 7 years ago Reply Muhammad: My name is dewan ayub madni after read your comments in tribute express if you feel please contact me via my email. Sarosh 7 years ago Reply Extensive research. Kudos to the reporter. ZBK 7 years ago Reply They were arrogant, non-professional, disrespectful to their staff, spied on their professional staff by personal servants, and ran the organizations through their personal orders like kings than through systems and processes.
Samir Ahmad 7 years ago Reply Excellent research and report! Saleem Akhter 7 years ago Reply good work of article writer,,, i observe unprofessional approaches of Mr Yousuf. Naval Vaswani 7 years ago Reply Well researched and kept the interest of reader intact. Arsalan Aqeeq 7 years ago Reply Hats off to the writer! Family business dynamics, corporate governance, growth, ambition, leverage, banks , political imperatives, CAR, stakeholder governance, stability and sustainability, innovation and diffusion and what not This is remarkable case Muhammad 7 years ago Reply Very well written article MT 7 years ago Reply I think, what I know the important name with role that effected the most in dewan downfall is "Ch.
He is the main culprit who bring his whole village into dewan employment. His decisions has taken vital role to eliminate professionals from Dewan group. Someone can highlight his career and contributions to falling zia farooqui. Arif Tahir 7 years ago Reply An excellent business case.
Jimmy 7 years ago Reply It is a remarkable article about a some time largest and most reputable group in Pakistan. It gives us lesson that one one should not forget that all decions taken by all enterpenour are not right and expansion of group should be with great care and conciously.
Any one wrong deccession could be a desarster for the group. Khan 7 years ago Reply It was a good real story and to much to learn from it.
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