The 1990s saw a massive boom in Pakistan's textile industry. As global demand for textile products soared, industrialists in Pakistan scrambled to capitalize on the opportunity. The Dewan Group, already a powerful name in Pakistan's business landscape, saw this as the perfect time to diversify its empire. Enter Dewan Salman Fibres—a company that would transform the synthetic fiber industry and compete head-to-head with Pakistan's textile giants, Nishat and Gul Ahmed.
A Bold New Venture
It was the spring of 1994 when Dewan Muhammad Yousuf Farooqui called an urgent board meeting at the Dewan Group's headquarters in Karachi. The room was filled with senior executives, financial analysts, and industry experts.
Yousuf (addressing the room):
"Gentlemen, the time has come to expand beyond cement and automobiles. The future of Pakistan's economy lies in textiles, and I want Dewan Group to be a part of it. We're entering the fiber business."
The room fell silent for a moment. The textile industry was already dominated by giants like Nishat Mills and Gul Ahmed. Competing with them would not be easy.
Aslam Siddiqui (COO):
"Sir, with all due respect, Gul Ahmed and Nishat have decades of experience in textiles. Starting from scratch would be a challenge."
Yousuf (smiling confidently):
"Who said we're starting from scratch? We're not making fabrics—we're producing synthetic fibers. Polyester is the future. Pakistan's textile mills import it in bulk. Why shouldn't we produce it locally?"
The room buzzed with murmurs of agreement. Polyester fiber was an essential raw material for textiles, and Pakistan imported a significant portion of it. If Dewan Group could produce it domestically, they could dominate the supply chain.
Establishing Dewan Salman Fibres
By 1995, Dewan Group had established Dewan Salman Fibres Limited (DSFL), setting up one of Pakistan's largest synthetic fiber production plants in Hattar, Khyber Pakhtunkhwa.
On a bright morning, Yousuf, along with his team of engineers, visited the construction site of the state-of-the-art fiber plant. Giant industrial machines were being installed, and workers in hard hats moved briskly across the vast factory floor.
Chief Engineer:
"Sir, we are installing world-class fiber production units from Germany. This plant will produce over 90,000 tons of polyester fiber annually."
Yousuf (nodding approvingly):
"That's exactly what we need. If we control the fiber supply, Pakistan's textile mills will have no choice but to work with us."
By 1996, Dewan Salman Fibres was fully operational, producing polyester staple fiber (PSF) that was supplied to textile mills across Pakistan. The company quickly became one of the largest producers of synthetic fiber in South Asia.
Competing with the Giants
With the factory running at full capacity, Dewan Group started aggressively marketing its polyester fiber to leading textile companies. The competition, however, was fierce.
In a meeting at Nishat Mills' Lahore office, Mian Muhammad Mansha, the owner of Nishat Group, sat with his team, discussing the sudden rise of Dewan Salman Fibres.
Mansha (reading a market report):
"Dewan Salman Fibres has captured 30% of the polyester market in just two years. If they continue at this pace, they'll take over the entire industry."
Nishat Executive:
"They're offering fiber at lower rates than the imported alternatives. Their aggressive pricing is a direct threat to us."
Mansha (smirking):
"Let them try. The textile business is not just about raw material—it's about relationships. Our mills will not switch suppliers that easily."
Gul Ahmed, another textile powerhouse, also felt the heat. In a strategy meeting, its executives discussed how to counter Dewan's growing influence.
Gul Ahmed CEO:
"Dewan Salman Fibres is providing quality fiber at competitive rates. We need to lock in long-term contracts with our suppliers before they all switch to Dewan."
But Dewan Group had an advantage—scale. Their massive fiber production capacity allowed them to offer better rates, forcing competitors to rethink their strategies.
Innovations and Market Expansion
By the late 1990s, Dewan Salman Fibres had become the backbone of Pakistan's textile industry. Major fabric manufacturers, including Al-Karam, Sapphire, and Chenab, began sourcing fiber from Dewan Salman.
One of the key factors behind DSFL's success was innovation. At a press conference in 1999, Yousuf announced a groundbreaking development:
"We are investing in research and development to produce finer and stronger synthetic fibers that will rival natural cotton. Our goal is to make Pakistani textiles more competitive in global markets."
To achieve this, Dewan Salman Fibres collaborated with international experts from South Korea and Japan to develop high-quality, eco-friendly polyester.
Economic Challenges and Downfall
While Dewan Salman Fibres was thriving, Pakistan's economy was becoming increasingly unstable. By the early 2000s, political uncertainty and rising energy costs started affecting industrial growth.
In 2002, at Dewan Group's Karachi headquarters, Yousuf held a tense meeting with his financial team.
Finance Director:
"Sir, the government has increased gas and electricity tariffs. Our production costs are rising, but our buyers are demanding lower prices."
Yousuf (frustrated):
"If we increase prices, we lose customers. If we lower them, we lose profit. What's the solution?"
Finance Director:
"We need government subsidies like the textile sector gets. Without it, we can't sustain this level of production."
But government support was limited. Unlike textile manufacturers, polyester fiber producers didn't receive the same incentives, making it harder for DSFL to compete.
By 2005, the situation worsened. The global polyester market faced oversupply, leading to a sharp decline in fiber prices. To make matters worse, debt started piling up, and banks tightened credit lines.
One by one, Dewan Group's subsidiaries faced liquidity crises. Dewan Salman Fibres, once a shining star, struggled to stay afloat.
The Final Blow
In 2008, Pakistan faced a major economic recession. The textile sector slowed down, and demand for polyester fiber plummeted. Dewan Salman Fibres was unable to pay off its mounting debts.
At a grim board meeting, Yousuf faced the harsh reality.
Bank Representative:
"Mr. Yousuf, your company has defaulted on loans. We are left with no choice but to seize assets."
Yousuf (sighing deeply):
"I built this empire with a vision for Pakistan's industrial future. How did it come to this?"
But the banks were firm. By 2010, Dewan Salman Fibres was no longer under the Dewan Group's control. The company was restructured, and parts of it were sold off to cover debts.
Legacy of Dewan Salman Fibres
Despite its downfall, Dewan Salman Fibres had already left its mark on Pakistan's textile industry. It had provided thousands of jobs, strengthened local fiber production, and played a vital role in the country's industrial growth.
As Yousuf stood outside the now-bank-controlled factory, he reflected on the empire he had built and lost.
"We changed the game. We proved that Pakistan could produce world-class fiber. That legacy will never fade."
Thus ended Dewan Salman Fibres' journey—an empire that rose with ambition, thrived on innovation, and fell victim to economic realities.