Mian Muhammad Mansha

Personal life Born in Lahore to a wealthy Chiniot family, his privileged upbringing allowed him to enjoy an early business education at an elite university. He formally joined the family business after completing his studies in London. “I have had many lucky breaks. Lady Luck has always been on my side. New projects just crop up before I stop doing the old ones" (Mian Muhammad Mansha). Mian Muhammad Mansha – a name signifying continuous struggle, hard work and a faith so very firm in his Allah that nothing on the face of this earth ever stopped him from attaining the goodies that life had in store for him and he did attain the giddy heights of glory. A father of three sons, Mian Muhammad Mansha stands out the richest man of Pakistan with a fortune worth $ 2.5 billion. He is also the biggest single exporter in Pakistan. He hails from Chiniot, Punjab. ‘Chiniotis’ are one of the leading industrialists of Pakistan. Mian Mohammad Mansha is the Chairman of “Nishat Group” - the biggest industrial and financial conglomerate of Pakistan. This group was founded in 1948 by Mansha's father Mian Mohammad and his three brothers. It was named after Nishat Haroon, the 3 year old grandson of Mian Mohammad Yaqub. Nishat Haroon was born to Mian Farooq who was married to the daughter of Mian Fazal Rehman of United Textile Mills, Multan. Windmills of God work in strange ways. In 1948 when Mansha's father Mian Mohammad Yahya and his three brothers incorporated a partnership concern, it was called Nishat Corporation after Nishat Haroon, the three year old grandson of Mian Mohammad Yaqub, eldest of the four brothers. The child who gave his name to the group has disappeared in thin air and Mian Mohammad Mansha, Chairman Nishat Group is today on top of Pakistan's corporate world, boastfully accustomed to buying his casual outfit from Harbe Frog on Bond Street, shoes inevitably from Gucci, cardigans and overcoats from Burberrys’. Nishat Group had several industrial units in East Pakistan, which they lost in 1970. This group now owns ‘Muslim Commercial Bank’, five cement factories and numerous other industries. Nishat currently comprises of 21 companies including 13 listed companies with manufacturing assets of nearly 27 billion and three of Mansha's close relatives, Saigols, Jehangir Elahi and S M Saleem of United Bank among the top 45 industrial families in Pakistan. Mian Mansha has catapulted to the top of Pakistan's richest families from the 15th position in 1970 and 6th in 1990 because of combination of factors like his marriage to Naz, daughter of Yusuf Saigol. Like several other Chinioti businessmen, Mian Yahya had a leather business in Calcutta (India) before moving to Pakistan in 1947 and it was perhaps in Calcutta that he developed friendship

with Yusuf Saigol that led to the marriage of Mansha and Naz Saigol sometimes around 1970. “Investing in the shares of Muslim Commercial Bank (MCB) has been one of my biggest business slip ups. In hind sight, I should have never invested in this bank", Mansha told Ayesha Haroon of daily. According to group profile, Nishat comprised of five companies with assets worth Rs 2,480 millions in 1990 with plans for four new companies. Listed comapnies included Nishat Mills, Omer Fabrics and Raza Textiles while the only unlisted company was General Stitching Company. Mansha had said in interview with Mahmood Awan that "for long-term investments, he had his eyes set on the food processing industry" but the privatization of Nawaz Sharif opened new doors for him and his dream to venture into food processing industry has not materialized to date. Instead, Mansha, his relativess and business associates emerged as the biggest beneficiary of the privatization under taken by Nawaz Sharif, ending up with five cement factories and a bank. Mansha claimed in a talk over telephone with the author that MCB helped the Employee Buyout of Millat tractors from the Privatization Commission.

GENERAL MARKET SCENARIO: Economic conditions are getting better as there has been some recovery of economies from the recession in year 2009-2010. However, besides this international issue, local issues of high production costs from higher cotton prices, rising energy costs, increasing prices of imported inputs due to depreciation of Pak Rupee, high inflationary pressure, power failure etc are matters of serious concern for the business. Besides this, Pakistan is already facing tough competition from neighboring countries and with slow sales in US and European Markets, Nishat Group survived due to full utilization of its production capacity, timely investments, effective business planning, aggressive marketing strategy, strong customer base and diversified product range. Its strength lies in strategic planning and marketing capabilities along with vertically integrated production facilities that can turn raw cotton to a final finished consumer product that always attract attention of customers all over the world. Business growth Mian Mansha's conglomerate greatly benefited from the privatization drive of the 1990s. Through this period, he made a number of acquisitions and buy-outs, including engineering at least one hostile takeover. When the dust settled, Mansha had acquired a controlling position in Adamjee Group, the country's largest non-life insurer, and D.G. Khan Cement, previously owned by the Saigol family. While going through these large acquisitions, he was simultaneously expanding his Nishat Textiles segment, Nishat Textiles is Pakistan's largest fabric mill. But all these achievements, perhaps, play third fiddle to Mansha's master-stroke: the acquisition of one of Pakistan's most profitable banks, MCB Bank Limited. Competing with several other

bidders in a privatization process, there were several challenges to overcome, but ultimately he persevered. Under Mian Mansha's watch, MCB has demonstrated flawless execution, admirable growth and has built one of the premier financial services management teams in the country. Mansha has proceeded to venture into new terrain, executing deals with state-owned WAPDA (Water and Power Distribution Authority) to sell excess power capacity installed at Nishat's various facilities. This led to the founding of Nishat Power, which is now going from strength to strength his son Qasim Mansha also laying important part in his decisions. MCB has also recently started a partnership with Maybank of Malaysia. Maybank now has a 25% share in MCB.

Decision Making System Of Nishat GROUP: The decision making system of NISHAT CHUNIAN LIMITED is in between the centralized and decentralized. In past it was fully centralized but as time is passing and the organization is expanding and getting larger day-by-day the decision making system is getting decentralized. Right now some of its policies are made by only top management and in some lower management is also included so the system is not purely centralized not decentralized. Nishat Group Companies S. No 1 2 3 4 5 6 7 8 9 10 Name Nishat Mills Raza Textiles Omer Fabrics Nishat Chunian Nishat Tek General Stitiching D G Khan Cement Maple Leaf Cement Nishat Fabrics Gener Tech Assets 9,236 302 854 910 986 78 7,775 6,686 963 Turn over in Million Rs. 6,748 421 629 663 236 68 1,547 1,030 225

Financial Assets

S. NO Name 11 12 13

Assets

Muslim Commercial Bank 163,325 Fidelity Investment Bank 1,502 Fidelty Leasing Total Financaial Assets Unlisted Companies 318 165,145

1- Nishat Finishing Mills 2- Nishat Capital Management 3-Trust Management Services 4-Chunian Fibre 5-Nishat Europe 6-Newbery Mansha 7-Maple Leaf Electric Company 8-D G Khan Electric Company

Plans

With $700 million in cash from MCB and another $300 million raised from international markets, Mansha has aspirations of acquiring an established bank in Indonesia and possibly even in the Middle East. MCB Bank already has international operations, and the Mansha group also owns an automobile leasing company in Kazakhstan. Further plans include major infrastructure projects in Pakistan, such as the construction of power plants and sea ports. Mansha once said in an interview that "for long-term investments, he had his eyes set on the food processing industry" but the privatization by Nawaz Sharif opened new doors for him and his dream to venture into food processing industry has not materialized to date. Instead, Mansha, his relatives and business associates emerged as the biggest beneficiary of the privatization under taken by Nawaz Sharif, ending up with five cement factories and a bank. Criticism In 2004, Mansha's group and his preferred candidate were defeated by a margin of two votes in the All Pakistan Textile Mills Association (APTMA). Mansha subsequently resigned from APTMA. According to his first interview to a foreign magazine, Mian Mansha stated that, "my net worth is about $4-5 billion. Indeed, there have been claims by many circles in Pakistan that the closely held group has a total capitalisation of nearly US$10 Billion (Rs. 800 billion). However, due to a mix of private and public companies in the group, it is not possible to accurately arrive at a definitive capitalization of sea ports. D.G. Khan cement, which is part of Mansha's Nishat group, was once the target of violence by local people living near the factory. The issue was eventually resolved by discussions and increased security around the plant.

Achievements Mian Mohammad Mansha is currently on the board of 45 companies in Pakistan and is one of the most powerful and influential people in the country. He was awarded the Sitara-e-Imtiaz civil award by President Musharraf on 23 March 2004. One of Mansha's companies, Nishat Mills Limited, is the largest exporting entity in Pakistan. In March 2010, Mian Mohammad Mansha became the first Pakistani ever to make it to the Forbes rich list. Forbes valued Mansha as the World's 937th richest person, with the net worth of $1.0 Billion.

Other businesses

Mansha owns the domestic charter plane service Pakistan Aviators & Aviation Ltd which owns seven planes worth $300 million. There are several other Mansha related businesses which remain unknown and top secret. Mansha has recently purchased Saint James hotel in London for GBP 60 millions! It is widely believed that the purchase, which has not been publicised too much has been done with the sons of Mian Mohammed Nawaz Sharif who are big time real estate dealers in UK. Mansha is also buying control interest of United Bank (UBL). This would give him monopoly on the banking sector of Pakistan. In 2009, Mansha bid for Royal Bank of Scotland could not materialise because his flagship company MCB bank was in violation of State Bank of Pakistan rules and regulations requiring deposit of shares. Mansha blamed Zardari for the fiasco. To seek revenge, Mansha who is publicity shy came on television to embarass the government about Kerry Lugar Bill money. He said he can bring $2 bn per year with no conditionalities and that the weak government has shamed Pakistan. Mansha is also now the owner of AES power plants that were the subject of much controversy in 1990's. Mansha also set up 2 IPPs. The inauguration of one plant was held in October 2009 with PM Gillani and Shahbaz Sharif and Khawaja Asif but the plant was only able to product electricity one year later for unknown reasons. Mansha is in litigation with the Adamjee family of Karachi because of his hostile and morally corrupt take over of Adamjee insurance. Adamjee shares were mortgaged with MCB bank and Mansha exploited the opportunity to seize control despite his written promises to Adamjee family. Mansha is also in litigation with Hussain Lawaee of Arif Habib Bank. Lawaee says Mansha is a fraud who cheated him out of his profits from MCB bank. Mansha says Lawaee is an absconder and will sort him out. Lawaee is chief of Arif Habib bank. Politics Mansha is politically connected. He went from being broke to super rich after Nawaz Sharif government gave him D.G. khan cement and MCB bank. It is believed Nawaz Sharif is a silent partner in MCB which is used to launder his money. Because of MCB bank controversy in 1990s Mansha went into self exile to Boston. He came back to Pakistan during the second Nawaz Sharif government. Mansha has solid backing of PMLN. Noon League MNA's like Khawaja Asif are said to be on his payroll. Khawaja Asif's son Asad "works" at MCB bank. He gets Rs. 300,000 per month for the few hours per week he comes to work. References

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en.wikipedia.org/wiki/Mian_Muhammad_Mansha_Yaha

http://www.youtube.com/watch?v=TFZgEz7cswU
www.zoominfo.com/people/Mansha_Mian_162065461.aspx www.123people.com/s/mian+mansha

http://www.euromoney.com/Article/2023813/ChannelPage/0/AssetCatego ry/15/ http://richpaki.tripod.com/barons.html http://www.brecorder.com/news/companynews/pakistan/1119343:news.html http://www.amcy5.com/Reports/internship/amcy6.htm www.pakistanileaders.com.pk/profile/Mian_Muhammad_Mansha 2010


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