Abdul Razak Dawood

founder of DESCON

Compiled from 1 recorded interview. Every statement below is drawn from the passage cited beside it.

Abdul Razak Dawood is the founder of DESCON and is associated with the BARD Foundation. He started DESCON with four engineers from Dawood Hercules, where he became managing director. He joined the government when Imran Khan asked him, and he says he is still Pro Chancellor of LUMS.

Early life and background

Dawood was born in a small village in Kathiawar, in what is today Gujarat. The village was a hub of the Memon community. His grandfather went bankrupt in the 1929 crash and never recovered. The family, under its eldest brother, started a cotton yarn business in Mumbai. The family's business grew to include a ginning factory near the village and a ghee factory in Kolkata. The family packed up, moved to Karachi and settled there. [1]

Education

His first formal schooling was in Kolkata. He stayed on at an English public school in Yorkshire, and says he was among the first few Pakistanis to go to England. He says he paid no attention to academics, failed his O-levels and had to repeat them. He was absorbed in sport and played rugby and cricket. He says his life changed completely in September 1961, when he was about 17. [1]

He passed his A-levels, went to university, and played rugby there. He studied mining engineering at Newcastle. He went to America to do an MBA and was on the Columbia University campus during the 1968 strike. He says the MBA, American education and life in New York were transforming for him, that he never understood hard work until he went to America, and that he learned marketing skills at Columbia. He says he went away in 1950 and came back in 1968, an absence of 18 years. [1]

Lawrencepur

The family went into cotton mills and other sites, including Lawrencepur. He was posted to the family's woollen textile mill at Lawrencepur, in Attock district. He was made managing director at about 25 or 26. The business came out with new products, including ladies' fabrics, for other segments of the market. He says about 95% went to the local market and very little was exported. [1]

Losses in East and West Pakistan

He said the family lost very heavily in East Pakistan. The family's units were taken over by the new Bangladesh government and classified as enemy property. He said Bhutto's government nationalised industries in West Pakistan, and that the family lost less there than some other business families did. He said the family's fertilizer plant escaped nationalisation because it had foreign investment. [1]

Dawood Hercules

He was told he would be transferred to Lahore because of problems with the Hercules partner. Dawood Hercules was a urea fertilizer plant that had just come on stream. He says there were then only two fertilizer plants in the private sector, and one of them was his family's. He became managing director of Dawood Hercules after the problem was solved. He says he spent about 90% of his time on international partner relationships and corporate issues, and that he was learning drawings, detailed engineering and process engineering. [1]

He says the family broke up and he left Dawood Hercules. Dawood Hercules was sold to the Fatima group. [1]

DESCON

He said he wanted a company for which Pakistan was too small, so it had to go global. DESCON won its first job in 1982, by which time it was operating in Abu Dhabi and Pakistan. DESCON offered civil, mechanical and electrical work as a one-stop shop and moved into turnkey EPC projects. He said DESCON lost heavily on work for Unilever, which he described as giving a Cadillac and charging the price of a Suzuki. He said the company learned a very bitter lesson that got it into EPC. The company took on partners from overseas, and that area of business grew. [1]

He said DESCON operates in Oman, Dubai, Abu Dhabi, Saudi Arabia and Qatar, and has a recent South African acquisition. He says DESCON took a decision that it had to get into Africa. He said DESCON diversified into chemicals and power, with engineering as the common thread. His son took the decision to diversify further, and the group moved into agriculture. DESCON has two agriculture companies, one of them in micronutrients, and has set up a research farm. He said DESCON was celebrating its 45th year. [1]

Government service and return

He joined the government when Imran Khan asked him, and he said yes. He returned after Imran Khan's government was voted out, but not to his old position. He says he is not chairman of, or on the board of, any of the companies. He says he wants his sons and managers to see him as a reference library, not a manager, and that he would die if he retired. [1]

Trade and connectivity

He says he spent a lot of time on three things: exports, regional connectivity and industry development. He took a very large business delegation to Kenya for three days, and says that as soon as COVID was over, they went to Nigeria. He says Africa has about 1.2 billion people and that Pakistan's exports to Africa are growing, but far below their potential. He says he has made several visits to Uzbekistan, Turkmenistan and Kyrgyzstan. [1]

A test truck went from Pakistan to Moscow and was not stopped at the borders. He says a Pakistani truck under the TIR protocol can go anywhere, and that they are now doing maybe 100 trucks a day, which he calls nothing. He says Karachi is the best port for trade from Central Asia to Africa, and that a big investment is needed in the custom house, truck parking and formality areas at the Torkham border. [1]

Succession

He says the biggest problem in a family business is the transition of power. He said that after a meeting he would sign all the documents and hand everything over to his two sons. He says his elder son runs the engineering side of the group. [1]

Teaching and LUMS

He offered his services to the Punjab MBA program at Punjab University. He taught courses from 1975 to about 1981. He says he started LUMS together with another person, and he says he is still Pro Chancellor of LUMS. [1]

BARD Foundation

He says he now spends his energy giving money away through the foundation rather than earning it. The name BARD is an acronym that includes the names of Abdul Razak Dawood and one other person. He says education is one big area of the foundation's work. The foundation says it supports Pakistanis who aim to reach the international level in sports, and does nothing in the health sector. The foundation funded a person who asked for support to climb K2. [1]

He says Pakistan does not have the concept of a sports scholarship and that sports in Pakistan is badly organised. He says he was surprised to find an adequate number of playing fields that sit dormant and unused. He says education is the best equaliser, and sport is another. [1]

Views on the economy

He says Pakistan's biggest problem is that it does not earn enough dollars, and that an export-led growth strategy is the only way for Pakistan to move forward. He says textiles grew at about 26% and IT at about 46%. He says taxes on raw materials create an anti-export bias, and that most of Pakistan's raw materials now come in duty-free. He says Pakistan is not part of ASEAN and that SAARC does not work. [1]

He says India went and registered Basmati, so Pakistan had to contest it on the basis that it belongs jointly. He says Multani tiles and Peshawari chappals belong to Pakistan under geographical indication. He says rice exports are over $2 billion, and that textiles and glass are good export products because the raw material is local. He says a Pakistani car's maximum deletion is 40 to 45 percent and a tractor's is almost 100 percent, while motorcycle deletion is approaching 85%. [1]

He says Pakistan has become consumption-led rather than export-led. He says conditions in Pakistan are not good by any standard at present, and that one must be hopeful that they will get through the present political quagmire. [1]

Personal life

He turned down a move to Canada, which his brothers took. He says he concluded that staying in Pakistan was the correct decision, and that he has no regrets about his choices. [1]

Timeline

1929
His grandfather went bankrupt in the crash.[1]
1950
He went away; he came back in 1968.[1]
1961
In September, when he was about 17, his life changed completely.[1]
1968
He was on the Columbia University campus during the strike.[1]
1975
He taught courses from this year to about 1981.[1]
1977
He formed DESCON around this year.[1]
1982
DESCON won its first job.[1]

Appearances

DateTitleWhere
2022-11-28 Abdul Razak Dawood: a Memon village, Columbia, and building DESCON Thought Behind Things

Frequently asked questions

Who is Abdul Razak Dawood?

Abdul Razak Dawood is the founder of DESCON and is associated with the BARD Foundation. He started DESCON with four engineers from Dawood Hercules. He says he is still Pro Chancellor of LUMS.[1]

What company did Abdul Razak Dawood found?

Abdul Razak Dawood founded DESCON. He says he formed it around 1977, a little before he left Dawood Hercules. DESCON won its first job in 1982, by which time it was operating in Abu Dhabi and Pakistan.[1]

Where did Abdul Razak Dawood study?

Abdul Razak Dawood studied mining engineering at Newcastle. He also stayed on at an English public school in Yorkshire and went to America to do an MBA. He was on the Columbia University campus during the 1968 strike.[1]

Where is Abdul Razak Dawood from?

Abdul Razak Dawood was born in a small village in Kathiawar, in what is today Gujarat. The family packed up, moved to Karachi and settled there.[1]

What is the BARD Foundation?

The name BARD is an acronym that includes the names of Abdul Razak Dawood and one other person. He says education is one big area of the foundation's work. The foundation says it supports Pakistanis who aim to reach the international level in sports.[1]

What is Abdul Razak Dawood's role at LUMS?

Abdul Razak Dawood says he started LUMS together with another person. He also says he is still Pro Chancellor of LUMS.[1]

References

  1. Abdul Razak Dawood: a Memon village, Columbia, and building DESCON . Thought Behind Things , 2022-11-28.
Show the source passages (110 statements)
  1. He was born in a small village in Kathiawar, in what is today Gujarat. I was born in a very, very small village uh in Kathiawar. That is today uh Gujarat.
  2. His birthplace village was a hub of the Memon community. that was the hub of the Memon community.
  3. His grandfather went bankrupt in the 1929 crash and never recovered. my grandfather went bankrupt in the crash of 1929. Um he never really recovered and he died.
  4. The family, under its eldest brother, started a cotton yarn business in Mumbai. under the eldest brother, Ahmed Dawood, they all got together and then they went uh and went to Mumbai uh and started a uh the yarn business, selling cotton yarn.
  5. The family's business grew to include a ginning factory near the village and a ghee factory in Kolkata. we had a ginning factory in uh near um our village. We grew to a point where we had a ghee factory in Kolkata.
  6. The family packed up, moved to Karachi and settled there. Uh we pack our bags and uh come to Karachi. Settle down in Karachi.
  7. His first formal schooling was in Kolkata. my sort of first formal education was in some school uh in Kolkata.
  8. He stayed on at an English public school in Yorkshire. there were really five of us who stayed on in one um in one English public school out in Yorkshire, uh a very rugged uh school.
  9. He says he was among the first few Pakistanis to go to England. We were the only uh we were the first, first few Pakistanis uh that uh went to England.
  10. He says he paid no attention to academics, failed his O-levels and had to repeat them. I never, never paid attention to academics at all. Uh with the result that uh I failed my O-levels. I had to repeat it.
  11. He was absorbed in sport and played rugby and cricket. And a rugby player and a cricket player and this player and that player and uh I was so engrossed in uh sports
  12. He says his life changed completely in September 1961, when he was about 17. It happened in September 1961. So uh I was about 17. Uh and that was that changed my life uh completely.
  13. He passed his A-levels, went to university, and played rugby there. passed the A-levels, went to university, um did play rugby at university
  14. He studied mining engineering at Newcastle. I was doing mining engineering at Newcastle.
  15. He went to America to do an MBA. when um uh I went to America for my MBA.
  16. He was on the Columbia University campus during the 1968 strike. The famous Columbia University strike of 1968 was there when I was on campus.
  17. He says the MBA, American education and life in New York were transforming for him. the experience of the MBA, the experience of American education, the experience of being in New York, uh it was absolutely transforming.
  18. He says he never understood hard work until he went to America. I never realized what hard work was until I went to America.
  19. He says he learned marketing skills at Columbia. I could apply the marketing skills that I had learned at Columbia.
  20. He says he went away in 1950 and came back in 1968, an absence of 18 years. we went in 1950, came back in 68. 68, right? So 18 years.
  21. The family went into cotton mills and other sites, including Lawrencepur. we went into cotton mills, we went into Burawala, we went into Lawrencepur, we went into Karnaphuli.
  22. He was posted to the family's woollen textile mill at Lawrencepur, in Attock district. you go to uh our textile uh uh woolen textile mill in at in Lawrencepur in uh district um Attock.
  23. He was made managing director at about 25 or 26. There I was, I was what, 25, 26. Um they made me the managing director.
  24. The business came out with new products, including ladies' fabrics, for other segments of the market. we came out with new products, ladies' fabrics, uh and so many other segments in the market.
  25. He says about 95% went to the local market and very little was exported. Uh very little was exported, very little. Um it was um 95% uh local market.
  26. He said the family lost very heavily in East Pakistan. We lost very heavily in East Pakistan.
  27. The family's units were taken over by the new Bangladesh government and classified as enemy property. all our units were were taken over by the um the new Bangladesh government. It was classified as enemy property.
  28. He said Bhutto's government nationalised industries in West Pakistan. here in West Pakistan, Bhutto nationalized industries.
  29. He said the family lost less in West Pakistan than some other business families did. In West Pakistan, we lost but not as uh as heavily as uh the Fancy family, the Saigol family, Adamjee, they they lost more.
  30. He said the family's fertilizer plant escaped nationalisation because it had foreign investment. we had foreign investment in our fertilizer. So anything uh so fertilizer was not touched.
  31. He was told he would be transferred to Lahore because of problems with the Hercules partner. I want you to be transferred to Lahore. Uh because we're having problems with our Hercules partner.
  32. Dawood Hercules was a urea fertilizer plant that had just come on stream. It was the urea fertilizer plant. It just came on stream.
  33. He says he spent about 90% of his time on international partner relationships and corporate issues. I spent 90% of my time on international partners relationships, corporate issues
  34. He became managing director of Dawood Hercules after the problem was solved. it was solved. I became the managing director of um Dawood Hercules.
  35. He says he was learning drawings, detailed engineering and process engineering. Learning uh uh drawings, detailed engineering, process engineering.
  36. He says the family broke up and he left Dawood Hercules. the family broke up. Family broke up. Uh I left Dawood Hercules.
  37. Dawood Hercules was sold to the Fatima group. it was sold to the Fatima group.
  38. He says there were then only two fertilizer plants in the private sector, and one of them was his family's. in the private sector, there were only two uh fertilizer plant. One was by Engro, uh and the other was ours.
  39. He says he formed DESCON around 1977, a little before he left Dawood Hercules. Um actually 77. We it's a little before I left. We had actually formed the company because I could see the writing on the wall
  40. He started DESCON with four engineers from Dawood Hercules. And um myself and four engineers from Dawood Hercules.
  41. He saw an opportunity in mechanical and electrical engineering, where he said there were no companies, while civil engineering already had reasonable ones. Uh so civil engineering uh they were reasonable companies. Mechanical, electrical, none. So I said, this is an opportunity. There is nobody in the mechanical side.
  42. The company took only the mechanical work on the job and did not touch the civil work. Uh we only took the mechanical, we didn't touch the civil.
  43. He says the job put the company on the map, showed everybody it could handle a large project, and was a three-year project. Put us the uh on the map. Then everybody knew that we had a uh large large uh project. It was a three-year project.
  44. He said he wanted a company for which Pakistan was too small, so it had to go global. we've got to go global. Pakistan, I want to have a company where Pakistan is too small for us.
  45. DESCON won its first job in 1982, by which time it was operating in Abu Dhabi and Pakistan. we won our first job uh in 1982. So by 82, we were now in Abu Dhabi and Pakistan.
  46. DESCON offered civil, mechanical and electrical work as a one-stop shop. It's now time we provided a one one-stop shop. So we offer civil, mechanical, electrical.
  47. DESCON moved into turnkey EPC projects. Let's go into the turn key project, EPC as we call it.
  48. He said DESCON lost heavily on work for Unilever, which he described as giving a Cadillac and charging the price of a Suzuki. we gave Unilever a Cadillac and charged the price of a Suzuki for it. We lost our shirt on it.
  49. He said the company learned a very bitter lesson that got it into EPC. Uh we learned a very bitter lesson. Uh but that got us into EPC.
  50. The company took on partners from overseas, and that area of business grew. we got partners from overseas. And that area went up.
  51. He said DESCON operates in Oman, Dubai, Abu Dhabi, Saudi Arabia and Qatar, and has a recent South African acquisition. We're now operating in uh Oman, uh Dubai, Abu Dhabi, um we were in Kuwait, um Saudi Arabia, Qatar, and uh our recent acquisition uh is uh in uh South Africa.
  52. He says DESCON took a decision that it had to get into Africa. we took a decision two years ago. And then we said, look, we've got to get into Africa.
  53. He said DESCON diversified into chemicals and power, with engineering as the common thread. we went into chemicals, we went into power. Uh and uh all of it was the common thread in everything was engineering.
  54. His son took the decision to diversify further, and the group moved into agriculture. my son's uh took took the decision that we will now go really diversify. So we're now into agriculture.
  55. DESCON has two agriculture companies, one of them in micronutrients. We have a uh a two agriculture companies. Uh one is micronutrients.
  56. DESCON has set up a research farm. And we've now set up the Descon uh research farm.
  57. He says the biggest problem in a family business is the transition of power. the biggest problem in a family business is the transition of power.
  58. He joined the government when Imran Khan asked him, and he said yes. Imran Khan asked me to join the government, and I finally said yes.
  59. He said that after a meeting he would sign all the documents and hand everything over to his two sons. after this meeting, I will sign all the documents and I'm handing over everything to the two boys.
  60. He returned after Imran Khan's government was voted out, but not to his old position. I never came back until Imran Khan's uh government uh uh was voted out. Um I came back. I said, look, I'm not coming back to that same position.
  61. He says he is not chairman of, or on the board of, any of the companies. I'm not the chairman of uh any of the companies. I'm not even on the board of the companies.
  62. He says he wants his sons and managers to see him as a reference library, not a manager. say to my uh my my sons and to the management, look upon me as a reference library.
  63. He says he is still Pro Chancellor of LUMS. I still do a lot of work with um uh Lums. I'm still the Pro Chancellor.
  64. He says he would die if he retired. I'll die if I retire.
  65. He says he now spends his energy giving money away through the foundation rather than earning it. I now don't spend any time, any of my energies earning money. I spend all my energies spending money.
  66. The name BARD is an acronym that includes the names of Abdul Razak Dawood and one other person. Bard is an acronym for Bilquis and Abdul Razzaq Dawood.
  67. He says education is one big area of the foundation's work. Um obviously education is one big area.
  68. The foundation says it supports Pakistanis who aim to reach the international level in sports. if any Pakistani men, women, anybody who has the spirit of adventure and have the courage and determination to get to the international level in sports, we are with you.
  69. The foundation does nothing in the health sector. We don't do anything on the health sector.
  70. The foundation funded a person who asked for support to climb K2. She said, I can climb K2. Will you fund me? They said, yes. So we funded her.
  71. He says Pakistan does not have the concept of a sports scholarship. Pakistan mein woh concept hi nahi hai uh to give a sports scholarship.
  72. He says sports in Pakistan is badly organised. Sports is very badly organized.
  73. He says he was surprised to find an adequate number of playing fields that sit dormant and unused. I was surprised that there are adequate number of playing fields. But they're just dormant there, they're not used.
  74. He offered his services to the Punjab MBA program at Punjab University. I offered my services, uh, there was the Punjab MBA program at Punjab University.
  75. He taught courses from 1975 to about 1981. I taught a full, uh, courses, uh, from, from '75 to about '81.
  76. He says he started LUMS together with another person. And then, uh join, then, uh, myself and, and Babar Ali, uh, we started LUMS.
  77. He says education is the best equaliser, and sport is another. there is no better equalizer than education. And the other good equalizer is sports.
  78. He says he spent a lot of time on three things: exports, regional connectivity and industry development. the three things that I really spent a lot of time on. One was export, one was regional connectivity, and the third was industry development.
  79. He says Africa has about 1.2 billion people. As far as population is concerned. It's almost 1.2 billion people in Africa.
  80. He took a very large business delegation to Kenya for three days. I took a, a very large business delegation, uh, to Kenya. We, we were there for three days.
  81. He says that as soon as COVID was over, they went to Nigeria. So, as soon as COVID was, uh, over, we went to Nigeria.
  82. He says Pakistan's exports to Africa are growing, but far below their potential. we're seeing our exports to Africa grow. Nowhere near what is the potential.
  83. He says he has made several visits to Uzbekistan, Turkmenistan and Kyrgyzstan. I've made several visits to Uzbekistan, Turkmenistan, um, and Kyrgyzstan, uh,
  84. A test truck went from Pakistan to Moscow and was not stopped at the borders. We experimented with one truck. Uh, it went all the way from Pakistan to, uh, Moscow. Nobody stopped it.
  85. He says a Pakistani truck under the TIR protocol can go anywhere. The TIR protocol is once you are under that protocol, a, Pakistani truck can go anywhere.
  86. He says they are now doing maybe 100 trucks a day, which he calls nothing. we're now doing maybe 100 trucks a day. But that's nothing.
  87. He says Karachi is the best port for trade from Central Asia to Africa. the Central Asian Republics were saying they want to send goods to Africa. Your best port is, is Karachi.
  88. He says a big investment is needed in the custom house, truck parking and formality areas at the Torkham border. we have to make a big investment, uh, on the custom house, the, uh, parking area for trucks, uh, all the formality areas, uh, at the, uh, Torkham border.
  89. He says Pakistan's biggest problem is that it does not earn enough dollars. Our biggest problem is that we do not have, we don't earn enough dollars.
  90. He says an export-led growth strategy is the only way for Pakistan to move forward. an export-led growth strategy is the only way we can move forward.
  91. He says textiles grew at about 26% and IT at about 46%. Textiles grew at 26%, our IT grew at about 46%.
  92. He says taxes on raw materials create an anti-export bias. The more taxes you put on raw materials and thing, it's a bigger anti-export bias.
  93. He says most of Pakistan's raw materials now come in duty-free. they allowed, now, most of the raw material in Pakistan comes duty-free.
  94. He says Pakistan is not part of ASEAN and that SAARC does not work. We're not part of ASEAN. Um, we are part of, uh, the worst, uh, regional, SAARC, which doesn't work.
  95. He says India went and registered Basmati, so Pakistan had to contest it on the basis that it belongs jointly. India goes and registers it. So, now we had to fight them, that look, Basmati belongs jointly.
  96. He says Multani tiles and Peshawari chappals belong to Pakistan under geographical indication. Whether it's, uh, a Multani, uh, tile, whether it's the, uh, Peshawari chappals, they belong to us.
  97. He says rice exports are over $2 billion. The one that's going very well is rice. We are, um, over $2 billion.
  98. He says textiles and glass are good export products because the raw material is local. glass, because we have the, uh, raw material here. Um, textiles, because we have the cotton.
  99. He says a Pakistani car's maximum deletion is 40 to 45 percent, and a tractor's is almost 100 percent. Now, a Pakistani car, the maximum deletion is 40%, 45%. In the case of a tractor, it's 100 almost 100%.
  100. He says motorcycle deletion is approaching 85%. In the case of a motorcycle, motorcycle is now fast approaching 85% deletion.
  101. He says Pakistan has become consumption-led rather than export-led. We have become a consumption led growth strategy, rather than an export led growth strategy.
  102. He says conditions in Pakistan are not good by any standard at present. Pakistan is waqt halaat acche nahi hain by any standards.
  103. He says one must be hopeful that they will get through the present political quagmire. we must be hopeful about it. That we'll get through this uh political quagmire that we're in.
  104. He says he has no regrets about his choices. Oh no, I have no regrets. Absolutely no regrets.
  105. He turned down a move to Canada, which his brothers took. I said no. I'd rather be here. And now my brothers went, they moved to Canada, I didn't.
  106. He says he concluded that staying in Pakistan was the correct decision. we concluded that the decision to stay in Pakistan was the correct one.
  107. He says his elder son runs the engineering side of the group. My elder boy looks after uh the engineering.
  108. DESCON is celebrating its 45th year. after we're celebrating our 45th year.
  109. Abdul Razak Dawood is the founder of DESCON. Abdul Razak Dawood: Founder DESCON, BARD Foundation, Columbia University & Lawrencepur | 288 | TBT
  110. He is associated with the BARD Foundation. Founder DESCON, BARD Foundation, Columbia University & Lawrencepur