By the early 2000s, the Dewan Group had firmly established itself in textiles, cement, and automobiles. However, Dewan Mohammad Yousuf Farooqui, the visionary at the helm, saw another vital industry that could solidify the group's presence in Pakistan's industrial backbone: Steel.
A Bold Move into Steel
Sitting in his Karachi office, Yousuf ran his fingers along the edge of a thick report compiled by his financial team. The steel industry in Pakistan was growing rapidly, with increased demand from the construction, automotive, and infrastructure sectors. A deep breath later, he turned to Salman Farooqui, his younger brother and right-hand man.
"The numbers speak for themselves, Salman. Steel is the next frontier. We are already in cement, and we control a significant share of the construction supply chain. If we establish a steel division, we can create a self-sufficient ecosystem."
Salman, ever the cautious strategist, studied the report before responding.
"It makes sense, but steel is a different game altogether. The investment will be massive, and the competition is fierce. Pakistan Steel Mills is still a giant in the sector, and the Ittefaq Group has deep roots. Can we truly compete?"
Yousuf smirked, his confidence unwavering.
"We're not looking to compete. We're looking to innovate. If we integrate our existing cement and automobile supply chains, we can develop a cost-effective steel production model that no one else has. We just need the right partners."
Securing International Partnerships
Understanding that steel manufacturing required extensive technical expertise, Yousuf reached out to POSCO, a South Korean steel giant, and Baosteel Group from China. After months of negotiations, an agreement was in sight. The partners would provide state-of-the-art technology, expertise, and a cost-effective supply chain model to kickstart Dewan Steel Limited (DSL).
During a high-level meeting in Dubai, Yousuf, Salman, and Nadia Hussain—their financial advisor—sat across from representatives of the Baosteel Group.
Baosteel's Liang Chen, a sharp negotiator, leaned forward, tapping the agreement on the table.
"Mr. Dewan, entering steel manufacturing requires more than just capital. It demands government support, regulatory clearance, and above all, a sustainable long-term vision."
Yousuf nodded. "We have all three. The government is pushing for industrialization, and they want local steel manufacturing to reduce imports. We already have land secured in Sindh, and with your expertise, we can modernize Pakistan's steel industry."
Liang smirked. "If we do this, we expect long-term cooperation, favorable trade agreements, and access to your cement business for infrastructure projects."
Yousuf extended his hand. "Consider it done."
With that handshake, Dewan Steel Limited was born.
The Birth of Dewan Steel Limited (DSL)
The steel plant's location was chosen strategically—Port Qasim, Karachi—to facilitate easy import of raw materials and export of finished steel. The groundbreaking ceremony was attended by government officials, investors, and industrial leaders.
Standing before a crowd of dignitaries, Yousuf declared:
"Steel is the foundation of progress. Today, we lay the groundwork for a stronger, self-reliant Pakistan."
With advanced machinery from South Korea and China arriving within months, the plant construction moved quickly. Nadia Hussain oversaw the financials, ensuring the project remained on budget, while Sikandar Mehmood, the operations head, managed the supply chain.
Challenges and Competition
However, as with every ambitious project, hurdles appeared.
Energy Crisis: The nationwide power shortages increased production costs.
Market Monopolies: Established players, including Pakistan Steel Mills and Ittefaq Group, were not pleased with a new entrant.
Import Dependencies: The fluctuating prices of iron ore and coal made cost projections difficult.
At a crisis meeting, Salman spoke bluntly.
"We need an alternative energy solution. If we rely on the national grid, our costs will be unsustainable."
Nadia nodded. "Solar and wind power are viable options. If we invest now, we can cut energy costs by 30% in five years."
Yousuf agreed. "Do it. Also, we need to challenge the monopolies. Let's launch an aggressive pricing strategy—focus on bulk orders for government projects."
First Major Orders and Growth
By 2006, Dewan Steel Limited secured its first major contract: supplying steel for the Karachi-Lahore Motorway project. This deal was a breakthrough, proving the company's capability to compete at the national level.
A month later, an even bigger opportunity arose. The government announced tenders for steel supply in the China-Pakistan Economic Corridor (CPEC) projects. Knowing this could define the company's future, Yousuf personally led the negotiations.
At a tense bidding meeting in Islamabad, he sat across from high-ranking officials. When his turn came, he confidently presented his case.
"Dewan Steel is the future of Pakistan's infrastructure. We offer the best price-to-quality ratio, backed by cutting-edge technology and an integrated supply chain."
After days of deliberation, the government awarded Dewan Steel a multi-billion rupee contract to supply materials for CPEC projects. The deal catapulted the company into the top tier of Pakistan's steel manufacturers.
Political and Industrial Influence
With great success came political attention. Industrial leaders and policymakers began recognizing Yousuf as a major player in Pakistan's economic landscape. He was invited to strategic meetings discussing industrial policies, cementing the Dewan Group's influence in government affairs.
At a private dinner hosted by the Ministry of Commerce, a senior official whispered to him:
"Mr. Dewan, your steel business is disrupting some established interests. Be prepared for political resistance."
Yousuf smirked. "Business and politics are intertwined. We don't back down from challenges—we overcome them."
Legacy of Industrial Power
By 2008, Dewan Steel had expanded production, diversifying into high-strength steel for bridges, automotive-grade steel, and exports to Middle Eastern markets. The company's revenue soared, making it one of the largest private steel manufacturers in the country.
Sitting in his office, Yousuf looked over the latest financial reports. Salman entered, placing a cup of tea on his desk.
"You did it, Bhai. From textiles to cement, automobiles, and now steel. What's next?"
Yousuf smiled, taking a sip. "The world is changing, Salman. We must always be ready for the next big opportunity."
The journey was far from over.
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Conclusion
In this chapter, we witnessed the Dewan Group's strategic expansion into Pakistan's steel industry, overcoming financial, political, and industrial hurdles to establish Dewan Steel Limited as a dominant force. Through international partnerships, technological innovation, and aggressive market strategies, Yousuf and his team cemented their place in the industrial hierarchy. But new challenges loomed, and the road ahead was filled with both opportunity and adversity.