Wikipedia

Ahmed Dawood

Ahmed Dawood (15 March 1905 – 2 January 2002) was a Pakistani industrialist and a philanthropist.[1] Dawood founded several companies and The Dawood Foundation (TDF), which established the Dawood College of Engineering and Technology (renamed Dawood University of Engineering & Technology after being granted the status of a university in 2013).[2][3]

Ahmed Dawood
احمد داؤد‎
Ahmed Dawood
Born(1905-03-15)15 March 1905
Bantva, Bantva Manavadar, British India
Died2 January 2002(2002-01-02) (aged 96)
Karachi, Pakistan
Resting placeMewa Shah Graveyard
24°21′29″N 67°02′17″E / 24.358°N 67.038°E / 24.358; 67.038
Nationality
Years active1920–2002
Known forPatriarch of the Dawood Group
leading Pakistani Businessman in the 1950-60s
Founder of The Dawood Foundation (TDF)
TitleChairman
Term1947–2002
SuccessorHussain Dawood
Spouses
Aysha
​
​
(m. 1923; died 1933)​
Mariam Bai
​
(m. 1940)​
Children5, including Hussain
RelativesAbdul Razak Dawood (nephew)
Awards
  • Hilal-e-Khidmat (1962)
  • Baba-e-Ittehad (1986)

Early life edit

Dawood was born in Bantva, a small town in Kathiawar, British India, as the eldest son and second child of the seven children to Dawood Yaqoob and Hajiani Hanifa Bai, a Memon trader family.[4][5] He had three years of formal education,[6] like many others in his time and environs. He followed the family tradition and went into the family business.

When he was 12, he was sent to stay with his maternal grandfather, Abdul Ghani Haji Noor Muhammad, in south India. Over two years, he learned basic trade of cotton yarn, wheat, and grains in Shimoga (then in Mysore state, now in Karnataka).[7] He was then sent for another two years to the Madras Presidency area and assigned more responsibilities. The death of his father, Yaqoob, was a turning point in his life. Ahmed moved to Bombay and started his own business at the age of hardly 15.[8] Under the supervision of his grandfather, he opened a shop in Hanuman Building in the Tamba Kanta market area of Bombay.

When he was 18 or 19 years old, Dawood was married to Aysha, a girl of his own community and similar family background, in a match arranged by their families in the usual Indian way.[9] The couple had two sons – Aziz Dawood and Yousuf Dawood — and one daughter, Khadijah (Khatoo Bai). After around 10 years, his wife Aysha Bai died because of tuberculosis. Some years later, Ahmed Dawood married Mariam Bai, another lady from his own community and similar family background, again in a match arranged by their families. The couple had two children, son Hussain Dawood and daughter Amina Bai.[9]

Professional life in Bombay edit

Dawood's initial ventures in the spice trade ended in bankruptcy. He then opened a small shop in Tamba Kanta to deal in cotton and silk yarn. His strategy involved purchasing wholesale and selling retail. By 1933 he was with his firm the biggest supplier of imported yarn to the textile mills in British India.[10] He also set up a cotton ginning factory in his hometown of Bantva, an oil mill in Madras, and a Vanaspati (hydrogenated vegetable oil) factory in Calcutta.[10] With a special license granted by the British colonial government, Dawood set up an army vehicle disposable depot in Chattogram. Such depots were established after the end of the first World War and required a license.[11]

Dawood further acquired an automobile service and repair company which carried out operations on a large scale.[11] Altogether, Dawood had some 26 shops and offices across British India. He was about to finalise a deal with one of the leading traders and industrialists of the time, Nagindas Fulchand Chinai, to establish a viscose manufacturing joint venture when India got partitioned.[11] Dawood left India and moved with his siblings and their entire families to Pakistan soon after its founding with personal belongings they could carry.

Professional life in Pakistan edit

Dawood and his three brothers — Suleman Dawood, Siddiq Dawood, and Sattar Dawood — started new business activities as Dawood Cooperation Ltd. with an office in Karachi's old business area New Chali and soon after opened a shop on Saleh Muhammad Street (adjacent to Bandar Road) for trading textile and yarn. Therefore, the Dawood Cooperation was established in Pakistan and in Manchester.[10]

 
Dawood and Japanese Prime Minister Nobusuke Kishi at the Dawood Cotton Mills in Karachi during the latter's 1957 visit to Pakistan

In the following decades, particular in the 1950s and 1960s, Dawood founded several businesses and chaired companies in the cotton, textiles, paper, consumer goods, oil, logistics, insurance, jute, chemicals, motorbikes, home appliances, electronics, and fertilisers industries in East and West Pakistan. He rose to prominence at the national level and became a major figure in the industrialisation of Karachi.[12]

Dawood served as vice-chairman of Pakistan Industrial Credit and Investment Corporation (PICIC),[13] one of the first development finance institutions in the country.

In 1968, Dawood partnered with the American company Hercules Inc. A private loan from the World Bank's International Finance Corporation (IFC) supported the realisation of the fertiliser factory in Sheikhpura. In 1969, the expansion of multiple projects peaked: Dawood Petroleum Ltd started construction of its Oil Terminal at Keamari. The Dawood Jute Mills were set up in East Pakistan, and the construction of the Dawood Hercules Chemical Fertilizer factory started. The IFC invested into the expansion of the Karnaphuli Paper Mills in East Pakistan. The project to assemble motorbikes in Pakistan known as Dawood Yamaha Ltd. started in the same year. At the peak of his economic ventures in 1970, the different entities Dawood chaired employed 35,000 people. It was also the year his mother died.[14]

As a result of the independence of Bangladesh in 1971, assets and properties in East Pakistan of residents of West Pakistan were confiscated and nationalised. Dawood and his family lost factories in Dhaka and Chittagong — including Karnaphuli Paper Mills Limited, Karnaphuli Rayon and Chemical Limited, Dawood Jute Mills Limited and Dawood Shipping Company Limited — accounting for 60% of their industrial undertakings.[15] All investments in the former eastern part of the country were lost. The pressure also increased for the remaining businesses in Pakistan and for Dawood. In January 1972 he and other industrialists were put under house arrest.[16][17][18] The Government initiated nationalisation of many local private companies across the country. In the same year, the nationalisation process affected many industries including those of Dawood and his family.[19] He lost two million rupees and profitable industrial projects, namely Dawood Petroleum Limited and Central Life Insurance Company Limited.[5] Dawood Petroleum was put under martial law in 1972, and the oil business became in 1974 an official part of Pakistan State Oil (PSO). Dawood "was downsized to almost insignificance [but] he did not give up, he continued to develop things though at a much lesser scale".[20]

Of the remaining businesses that Dawood chaired, Dawood Hercules Chemical Ltd. and their fertiliser factory in Sheikhupura near Lahore was a profitable joint venture. This, along with the Lawrencepur Woollen and Textile Mills Limited, Dawood Cotton Mills Limited, Burewala Textile Mills Limited, and Dilon Limited, was the backbone of Dawood's economic activities.

In 1975, disappointed with the nationalisation policy of the government, Dawood and his wife left Pakistan for the US. While abroad, he set up an oil exploration company that discovered oil wells in Texas.[21] He then returned to Pakistan in 1977.

By the late 1970s and early 80s, although the corporation was doing well financially, Dawood's siblings parted ways with him.[22]

In 1990, Dawood bought the stake of the American partner of the joint venture and as Chairman, acquired all of Hercules' stakes.

Social and welfare services edit

 
Dawood at work in the late 1980s

Dawood focused his philanthropic activities on health and education. In 1950, he created the Dawood Trust to provide scholarships and financial help for students and educational institutions.[23] He transformed the Trust into an educational Foundation, which became The Dawood Foundation (TDF) in February 1960. In 1962 TDF founded the Dawood College of Engineering and Technology in Karachi, which became nationalised in 1971.

In 1983, he founded the Dawood Public School in Karachi's Dawood Colony. Dawood's children and those from his extended family all went abroad to the UK for schooling and to prestigious universities in the UK and the US.

TDF was involved in the construction and administration of various schools, colleges, and madrassas. It also offered stipends and scholarships to students for higher education.[24]

Dawood and his family have also been involved in the construction of Masjid-e-Quba in Karachi's Dawood Colony. He has also been engaged in welfare of the Memon community. In 1981, he was involved in the creation of a united platform for Memons.[25] The United Memon Jamat of Pakistan (UMJP) was formed to create a joint organisation of Halai, Kutchi and Sindhi Memons.

Dawood died 2 January 2002 in Karachi at the age of 96. Dawood is buried in the grounds of the Mewa Shah Graveyard of Karachi.[12]

In 2003, Lahore University of Management Sciences (LUMS) established the Ahmed Dawood Chair at the SBA School of Science and Engineering Dean in his honor.[26]

References edit

  1. ^ Cragg, Claudia (1996). The new maharajahs : the commercial princes of India, Pakistan and Bangladesh. London: Century. p. 68. ISBN 9780712677615. Retrieved 11 September 2021.
  2. ^ "About DUET". Dawood University of Engineering & Technology Karachi. Retrieved 11 September 2021.
  3. ^ Zardari, Shehnila (28 March 2021). "Celebrations and Questions: 100 Years of Engineering Education in Sindh". Dawn. Retrieved 11 September 2021.
  4. ^ "Family business in Pakistan The ghost of Mahbub-ul-Haq | By Ikram Sehgal". Pakistan Observer. 9 September 2022. Retrieved 29 June 2023.
  5. ^ a b Chaudhry, Aminurrehman (June 2019). "Seth Ahmed Dawood". Good Old Karachi. Retrieved 13 September 2021.
  6. ^ Batliwala 1995, p. 16.
  7. ^ Batliwala 1995, p. 17.
  8. ^ Batliwala 1995, p. 18.
  9. ^ a b Batliwala 1995, p. 22.
  10. ^ a b c TDF 1961, p. 6.
  11. ^ a b c Batliwala 1995, p. 25.
  12. ^ a b "Seth Ahmad Dawood passes away". Dawn. 3 January 2002. Retrieved 11 September 2021.
  13. ^ "International Reconstruction and Development, International Finance Corporation, International Development Association: Appraisal of Pakistan Industrial Credit and Investment Corporation, Limited" (PDF). World Bank. Retrieved 13 September 2021.
  14. ^ Batliwala 1995, p. 32.
  15. ^ Roy, Tirthankar (5 August 2017). The economy of South Asia : from 1950 to the present (Palgrave Studies in Economic History). Cham: Springer. p. 273. ISBN 9783319547206.
  16. ^ "2 of the Richest Men In Pakistan Are Put Under House Arrest". New York Times. 2 January 1972. Retrieved 13 September 2021.
  17. ^ Sen Gupta, Bhabani (29 October 1983). "Review: Business and Politics in Pakistan, Reviewed Work: Interest Groups and Development: Business and Politics in Pakistan by Stanley A. Kochanek". Economic and Political Weekly. 18 (44): 1878. JSTOR 4372652. Retrieved 13 September 2021.
  18. ^ Sterba, James P. (25 January 1972). "Bhutto Indicates an Easing of Curbs on Pakistan's Financial Elite". New York Times. Retrieved 20 September 2021.
  19. ^ La Porte, Jr., Robert (26 January 1973). "Pakistan in 1972: Picking up the Pieces". Asian Survey. 13 (2). University of California Press: 193–194. doi:10.2307/2642735. JSTOR 2642735.
  20. ^ Karnowski, Wolfram W. (2001). The EFU Saga. The Making of an Institution within the context of the creation of Pakistan (PDF). Karachi: M. Yunus, D&Y Printers. p. 262. Retrieved 13 September 2021.
  21. ^ Bashar, Amanullah (13 September 1999). "Hardwork is the key to success, says Ahmed Dawood". Pakistan Economist. Archived from the original on 24 December 2018. Retrieved 1 July 2021.
  22. ^ Bordonaro, Agatha (6 January 2017). "Five Tips for Leading a Successful Family Business". Columbia Business School. Retrieved 13 September 2021.
  23. ^ TDF 1961, p. 8.
  24. ^ "The Dawood Foundation – Fact Sheet". Awami Web. Retrieved 13 September 2021.
  25. ^ "Our History". United Memon Jamat of Pakistan. Retrieved 13 September 2021.
  26. ^ "Dr. Sohail Qureshi appointed Ahmed Dawood Professor". Lahore University of Management Sciences. 14 November 2011. Retrieved 13 September 2021.

Sources edit

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