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Pakistani Business Leader Sadruddin Hashwani

My life has been hard at times. I am a self-made man and have never depended on my parents. I took it as a challenge, touch wood and thank God because it has been a success. I am very satisfied that I have achieved many of my goals. !adruddin "ashwani#

Introduction:
Sadruddin Hashwani, is one of the top 10 richest men of Pakistan, is the boy who made it. The life of this tall, gangly, self-made entrepreneur tells us that a different future is possible. t tells us that there is power in words and there is power in con!iction. t tells us that if he can be "Sadruddin Hashwani#, so can anyone be$ pro!ided he or she is willing to go an e%tra mile. Hashoo &roup of 'ompanies was established under the leadership of (r. Sadruddin Hashwani. n a period of some three decades he through his single handed dedication and commitment to the Profession has transformed this &roup in to a leading industrial group of Pakistan, well known for its forward-looking approach, and highest standards of )uality and integrity. Starting with 'otton Trading, Hashoo &roup of 'ompanies today boasts the only chain of *i!e -Star Hotels in Pakistan namely The Pearl 'ontinental Hotels chain and the +arachi (arriott and the slamabad (arriott Hotels with presence in all the pro!incial capitals and the *ederal 'apital e%cept one. Today, Hashoo &roup of 'ompanies besides hotel industry encompasses oil and gas e%ploration, mining, ceramics, pharmaceuticals, tourism and tra!el. t also has considerable in!estment in real estate. (r. Sadruddin Hashwani with his keen eye on the future is now guiding the &roup to enter the field of nformation Technology , T-. Towards that end a wholly owned subsidiary of the &roup

. known as /et .1 ,P!t- 0td is currently operating as nternet Ser!ice Pro!ider that is planned to ser!e as springboard to launch substanti!e T pro1ects. The oil and gas e%ploration is being done under the 2rient Petroleum nc, which has recently met with successful find. The &roup is constantly on its forward march. Some e%amples of it are3 The construction of Pearl 'ontinental Hotel 4hurban in the pictures)ue (urree hills, 'onstruction of new wing called 5trium 6ing of The Pearl 'ontinental Hotel 0ahore e)uipped with the most modern amenities, 'ontinual upgradation and moderni7ation of Pearl 'ontinental Hotels and slamabad as well as +arachi (arriott Hotels, 5c)uisitions of the state-of-the-art 'eramics *actory to design and produce crockery and a plant known as &elcaps to manufacture halal gelatine capsules for the pharmaceutical industry according to the most stringent )uality standards. (r. Hashwani#s 8ision knows no bounds and it will be difficult to predict as to what will be his focus of attention tomorrow. *or him time is short and the 5rt is long. Therefore, his philosophy is that each moment of life should go towards ad!ancement of cause of humanity at large. (r. Hashwani runs Hashoo *oundation whose sole ob1ecti!e is to engage in philanthropic pro1ects in support of social and cultural causes and for the uplift of the depri!ed. Through this *oundation he not only fulfils his corporate responsibilities but also more importantly his unwa!ering commitment to promoting the good of common man.

List of companies owned by Hashoo group: Hotels and resorts:

Pakistan Ser!ices 0imited Hashwani Hotels 0imited Hashoo (otels Hotel 2ne by Pearl 'ontinental

9 Hotel 2ne by Pearl 'ontinental

Tours and travels

Pearl Tours : Tra!els ,P!t- 0imited ,rent a car di!isionTrans5ir Tra!els ,P!t- 0imited ;estinations of the 6orld - Pakistan

Information technology
/et-.1 ,P!t- 0imited Te1ari Pakistan 0td

il and gas
2cean Pakistan 0imited. <a!er Petroleum 'orporation 0imited

!inerals
<a!er 'hemicals ,P!t- 0imited <a!er (ining 'ompany 0imited <a!er 2ils 0imited

Pharmaceuticals
&elcaps ,Pakistan- 0td.

"eramics
'era-e-/oor

Investments
Hashwani Sales : Ser!ices ,P!t- 0imited Hashoo Holdings ,P!t- 0imited

Trading companies
Hashoo nternational ,P!t- 0imited Hasan 5li : 'ompany ,P!t- 0imited &enesis Trading ,P!t- 0imited

#elfare
Hashoo *oundation >meed-e-/oor

Howe!er, this huge empire has a tale of utmost con!iction and hard work to tell. Sadruddin started with nothing, after that e!erything was sheer profit. His dri!e and ambition brought him wealth, power and a taste for more in a world where those things mattered. He started from scratch. Howe!er, his skills brought him to better things ? money doesn#t grow on trees, true$ but he pro!ed to the world that it is certainly easy to find if you ha!e the commitment.

History:
'hairman of Hashwani group (r.Sadruddin Hashwani contributed in !arious field of Pakistan. He contributed in the field of tourism, real estate, Pharmaceutical, T, and oil and gas etc. Sadruddin Hashwani#s forefather were in business his parent wanted to saw him doctor but he used to play cricket and took interest an college union acti!ities and failed then he reali7ed he did not waste his time in these acti!ities.

@ 5t the age of 1A he became sales man of steal product, although he belonged to a !ery strong financing family. His family has migrated from ran. He started e%port cotton. He e%ported first consignment has sent to Bussia in 1CD@. That was too short and the giant of the e%port business laughed at him. 4ut by the help of &od and his hard worked he progressed and known as Eking of cotton#. Then he started Bice business. 6hen Pakistan separated from 4angladesh there was a huge )uantity of rice. He decided to e%port of rice and he became the largest e%porter of rice and made huge money. 6hen go!ernment nationali7e the trading companies. He went to 'anada and remain 1obless he had a opportunity to go the new Fork and continue his business, but he decided to li!e in Pakistan with his parents. /ow he decided to build hotels in his own homeland others critici7ed him but this is his emotional decision as a Pakistani. He has build holiday inn in 1CGA in slamabad .1CGG when go!ernor <ia and prime minister <ulfi)ar 5li bhutto being in power. Pakistani circumstances are not !alid or in!estment ne!ertheless, he builds another hotel in +arachi. There were only fi!e hotel in Pakistan he build intercontinental hotel with the help of general 5yub. Then he build hotel in ;haka, +arachi, 0ahore, Peshawar and Bawalpindi. 6hen Holiday inn#s 10 year contract e%pired, then he renamed hotel Holiday inn as (arriot. He met (r.4ell (arriot and he granted franchise for hotling. PS0 was a organi7ation of managing hotels but it was not satisfied with the )uality of intercontinental. So go!t decided to pri!ati7e PS0 and in!ited se!eral in!estors to gi!e bid. (r Hashwani offered a highest price because his record of best hotelier. 6hen the management contract of intercontinental e%pired, he did not renew it. 4ecause that management did not managed that properties well. They were also charging a great deal of money. So he decided that instead of gi!ing intercontinental it would be better to buy a new company and impro!e these properties.

D Pearl continental hotel +arachi is the member of the leading grouping world. He build P' hotel in bureban that is !ery beautiful and considered a dreamland of Pakistan, He added 900 more room in P' 0ahore. The nternational *inancial 'orporation and 'entral ;epository 'ompany of Pakistan financed the pro1ect. Then he saw a big chance in 0ahore and build to floor tower with D00 more rooms which was well furnished. He has fi!e star hotels in Pakistan but building a hotel is !ery risky one. The cost of a hotel in Pakistan is same as 0ondon and ;ubai. t is !ery tough task. f he in!ested .00,000 dollars on each room, then he has to charge.00 dollars per day. slamabad (arriot has one of highest sales with 110 dollars per night. He find a local name such as Ta1 (ahel in ndia and renamed his hotel business as pearl continent Hotal . Sadruddin Hashwani had spread the network of hotels all o!er the Pakistan and set e%ample for other business men to follow him. He has build P' &awadar in &awadar port. He has no only contribution in cotton , rice and hotel management but also in!ested in tourism and tour guidance , rent-a-car ser!ices. He has franchised the for people who can do their booking for tra!eling all o!er the word. He has .00 rents a car for the help of tourists in pearl continent Hotels. Hashoo group has started in!esting in energy and water sectors as Pakistan had been facing these problems since last two decades. 5s a child he had wish to e%plore in oil and gas business. He bought occidental petroleum and paid a high price for company. He drilled .00 wells and made se!en disco!eries. Then he had ma1ority shareholders of <a!er petroleum, which was the name of his mother.

G <a!er had a large disco!ery in +ohat where he was 10-@H with 2&;0', oil gas de!elopment company limited- . He had se!en disco!eries with 2&;0' in another block, but he had gi!en it to 2&;0' to do operate it. 5nother sector where he ser!ed Pakistan was high tech-ceramics 'era-e-/oor in blochistan. This plant has capacity of producing 10000 pieces a day. This plant of ceramic was being established to meet the needs of crockery of his chains of hotels. The plant was meeting the re)uirement his hotels along with other companies such as 5!ari hotel, P 5 e!en ambassies and go!t was using the ceramics. He established another company named as E&elcaps limitedI which was Halal and use for medicines.

How he started:
His parents wanted me to be a doctor. He was in a science college at the time and was a !ery keen sportsman who played cricket se!en days a week. He also became in!ol!ed in the college union. >nfortunately he did not do well in my e%ams and was a failure as a student. That is the time when he reali7ed that he should not ha!e been wasting his time with sports and union acti!ities when he had not yet finished my education. 4ut that was a challenge. 5t the age of 1A he began as a salesman selling steel products, to !arious industries because he did not want to be a burden for my parents. He started with steel, mo!ed onto grain, and e!entually in 1CD@ when he was .@ years old we got an opportunity to participate in the e%port of cotton. The first consignment we sold was to the So!iet >nion. t was a !ery small )uantity and the giants of the e%port business were all laughing at us then. The first year was a !ery difficult one but for him it was a challenge for them to be asking3 Jwho are these new kids in the cotton tradeJK Howe!er, in fi!e years they had achie!ed the position as the largest cotton e%porter and we became known as Jthe king of cottonJ. He used to work 9D@ days a year from nine in the morning until midnight. They had low cost operations and the cotton business was not easy but &od helped me and they were always ahead of our commitments. The ne%t opportunity was our in!ol!ement in the rice trade. 6hen Pakistan separated from Last Pakistan, which is present day 4angladesh, there was huge surplus of rice that

A used to go to Last Pakistan. This rice was now a!ailable for e%port and he came into that business, and again within one year he had become the largest rice e%porters in the country, and when the go!ernment decided to nationali7e the trading companies in!ol!ed in cotton, rice, barley, etc., he was in Toronto and became 1obless due to the actions of the &o!ernment of Pakistan. His parents were li!ing with me and came back to Pakistan e!en though he had had many opportunities to go to /ew Fork or to continue my cotton trading in 0i!erpool or in 0ondon. 4ut he decided to remain in Pakistan and spend time with his parents because owed it to them and to my country. Then he began thinking about building hotels. 6hile the go!ernment was nationali7ing, he was purchasing real estate, and companies such as /ew Mubilee nsurance and e!erybody was laughing saying3 J/ationali7ation is taking place and you are in!esting in PakistanNJ 4ut this is my country and he had and continues to ha!e an abiding commitment to it. He decided that he would not halt my contribution, which meant continuing to build for the country. t was not a commercial decision, but rather an emotional decision. His goal was to be in Pakistan. n the early se!enties he e%panded his business interests as a pioneer in PakistanOs hotel industry and real estate de!elopment. He sei7ed the opportunity to build the Holiday nn in slamabad in 1CGA, and then again two years later in +arachi. The slamabad Holiday nn was the first to be completed in 1CGA. n 1CGG Prime (inister 4hutto was ousted from power and &eneral <ia declared martial law. That was again a difficult time for Pakistan as it went through transformation to incorporate slamic rules and regulations. /e!ertheless, this did not pre!ent Sadruddin Hashwani from doing what he wanted to do. t was not for any political party or any go!ernment, but rather a pro1ect which he had undertaken for his own country. "Hashoo &roup# built another hotel in +arachi, which was again a Holiday nn. The reason it was a Holiday nn was that they allowed Sadruddin to ha!e a franchise whereas other hotel brands were not prepared to gi!e him a franchise because they wanted to manage the hotel themsel!es. Howe!er, he wanted to be in the dri!erOs seat and to manage the hotels himself.

C 5fter that, ntercontinental was built with the help of President 5yub +han. He had a !ision that there should be hotels a!ailable. Thus Pakistan Ser!ices 0imited, which Sadruddin owns today, was established by the &o!ernment of Pakistan, which held some of the shares. They were able to gi!e free land to Pakistan Ser!ices 0imited to build these hotels. The ntercontinental &roup had also put its own money into the pro1ect. There were other in!estors such as the 5merican company Pan 5m and Prince Sadruddin 5ga +han. They all pooled their resources and the go!ernment came forward and ga!e the land for these fi!e hotels to be built. 2ne of them was in ;haka, and the other four were in +arachi, 0ahore, Bawalpindi, and Peshawar. These initial pro1ects laid the foundations of the modern tourism and hospitality industry in Pakistan. Sadruddin#s !ision has always been to contribute towards de!eloping this important sector of our economy at par with world standards. The contract with nter-'ontinental e%pired and EPearl 'ontinentalI became the new name all o!er. Today, the Pearl 'ontinental in +arachi is a member of the leading hotel group in the world. Sadruddin Hashwani built a hotel in 4hurban, P' 4hurban - a beautiful hotel from which one can admire the mountains. Pearl 'ontinental is the name which has captured the market, to say the least. n 0ahore e!erybody calls it P' and it is the meeting place for people in the city. t is easily pronounced and widely recogni7ed. (arriott too, belongs to Hashoo &roup. 6hen Hashoo &roup started using the (arriott name it was one of the first times in the history of the corporation that they had gi!en a franchise to a hotel that was not directly under their management control. 5n achie!ement for Hashoo group, indeed. Sadruddin Hashwani terms it as a matter of great satisfaction because when he met 4ill (arriott he had ne!er thought about the franchise. Then they sent their people to inspect these hotels before offering the franchise. 5s a matter of fact, the franchise agreement of the (arriott was made based on Hashwani#s hotel contract and drafted here in Pakistan. Today the format of franchise agreements has

10 been initiated by the Hashoo &roup and Sadruddin Hashwani is !ery satisfied that (arriott decided to recogni7e the product and lend it their name. Sadruddin Hashwani belie!es that in e!erything you do today there is a component of image. 6hat you wear, how you groom, and how you speak are all of the indi!idual efforts that you do to create your own image. Similarly in the ser!ice industry you ha!e to make sure that you are in best shape in order to pro!ide the best possible ser!ice and to keep on spending money in order to impro!e the product. Today in the (arriott "Hashoo &roup# has a .G-year old property but they ha!e been in!esting money e!ery day. The entire hotel is being e)uipped with plasma tele!isions. There are computer systems a!ailable in the rooms and you can do your airline bookings directly from them. This is their software$ they ha!e researched and de!eloped it themsel!es. /obody has it anywhere else in the world. Hashoo &roup#s T department has top class professionals, dedicated to research. They are putting new furniture in the rooms, and the only thing they cannot increase is the si7e of the rooms because they do not ha!e the land. 2therwise, they would ha!e built another hotel with =00 rooms and with maybe the )uality of the Bit7 'arlton. Sadruddin Hashwani belie!es that it is !ery important to in!est in )uality and in building up the product and its image. The reputation of their world-class hotels has spread far and brought new business and leisure tra!elers to their cities as destination cities. This is a big boost to the domestic hospitality and tourism industry. Since di!ersifying into the oil and gas sector in 1CC@, through 2rient Petroleum, (r. Hashwani is eyeing the energy sector in !arious nations. Pakistan has a net deficiency in energy resources. There are two ma1or issues in our countryOs natural resources sector3 one of them is the water situation$ the other is oil and gas. 2ld disco!eries such as the Sui gas field are depleting and each day we are running shorter on pro!en reser!es with increasing consumption. t will definitely be a challenge to meet the day-to-day re)uirements of the country. Pakistan has a deficit in terms of oil. 6e import o!er A0H and are not producing enough to offset our consumption. 5s a child he had the desire to be in the oil and gas e%ploration business because he likes to take risks. He is a !ery ad!enturous man by nature. 6hen He began my career his used to be the handling and

11 transport contractor in 4alochistan supplying rice, wheat, and sugar on behalf of the go!ernment. That used to allow him to tra!el by sea, by road, by truck, and by rail. 2il and gas, it is definitely something where you can make money. 6hen he bought 2ccidental Petroleum it had all of the infrastructure, the trained people, and the entire data room with all the facilities. 5ccordingly, he paid a premium price for the company and it has been a good in!estment. 5fter that he took o!er a large acreage from the go!ernment and in the last two years we drilled .0 wells. This is something that nobody had e!er done in Pakistan in such a short time span. They made se!en disco!eries and they are in the process of bringing them into production. Pipelines do not take the gas straight from the well, so you ha!e to clean and process the gas before bringing it to the main pipeline of Sui Southern &as 'ompany 0imited or Sui /orthern &as Pipeline 'ompany 0imited, in order to gi!e them the )uality they re)uire. Bight now they are producing 100 million cubic feet per day of gas and hopefully will be producing appro%imately .00 million cubic feet by Muly of this year. They ha!e also been !ery fortunate in our 1oint !entures. They ha!e ma1ority shareholders of <a!er Petroleum, which is named after his mother. <a!er has a large disco!ery in 'handa field near +ohat where we are a 10.@H partner with 2&;'0. >nfortunately it took fi!e years to bring the field to commercial production. They had se!en disco!eries with 2&;'0 in another block, which was theirs, but they had gi!en it to 2&;'0 to operate. 4ut so far that ha!e not come into actual production. They ha!e also applied for another block in Pun1ab. They recogni7e the urgent need for increasing our countryOs oil and gas production and we are doing our utmost as a company to achie!e that. (r. Sadruddin Hashwani was awarded the "2utstanding Professional 'ontribution 5ward# for his distinguished ser!ices to the tourism industry of Pakistan. He is a humble and down-to-earth gentleman. 5wards do not satisfy him. His satisfaction is his own personal satisfaction. He is not looking for any award or recognition. 6hat he does is what dri!es him, and abo!e all his satisfaction is not making

1. money in business, but rather pro!iding C,000 1obs today. He wants to pro!ide more 1obs and to contribute to his countryOs economic growth. His goal is to play a positi!e role. Sadruddin Hashwani is a man who has all the )ualities of head and heart. He is a philanthropist as well. The philanthropic Hashoo *oundation, and >meed-e-/oor, are his pro1ects which pro!ide special education and healthcare for children. The Hashoo *oundation has built 1A schools in Pakistan so far. t has a program to build another =0 schools with ten in each pro!ince of Pakistan. They are taking in children from working class families and pro!iding them with free education, books, uniforms, making sure that once they pick up a child, they can make him a graduate and hence play a positi!e role in the building process of Pakistan. The Hashoo *oundation was established to pro!ide scholarships and to build schools. The Hashoo &roup also has two other foundations3 the H25P *oundation and >meed-e/oor *oundation. Sadruddin Hashwani#s wife is running the >meed-e-/oor *oundation, which helps handicapped children. They are looking after G@ children and currently are trying to get land from the 'apital ;e!elopment 5uthority to build a permanent home which would then allow us to ha!e a facility for 900 children to be boarded there. Some of the children come from rich families but it is hard for them to look after them properly. t is essential for Pakistan to be able to take care of the people who need help. >meed-e/oor is committed to this cause and he has been financing whate!er he can and his wife organi7es fundraising functions a few times a year. n recognition of his contributions to Pakistan#s business and economic progress, the nstitute of 4usiness 5dministration, +arachi honoured (r. Hashwani in 1CAA with the E2utstanding Professional 'ontribution 5wardI. *or his distinguished ser!ices to the Tourism ndustry of Pakistan, he was awarded a &old (edal at the Tourism 'on!ention held in 1CC9. (r. Sadruddin Hashwani is a man of integrity whose ideas are worth admiring and his practices are worth emulating. His success story gi!es the nation a 7illion lessons to learn.

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$esources %llocation:
5s part of its tourism policy, < 5 4hutto go!t declared hotel as an idustry for securing bank loans. Sadaruddin Hashwani who was also acti!e in real estate decided to build a hotel on a piece of land that he owned in busy Sadar area in +arachi. He applied for for a loan and sought allotment of land in slamabad for a @-star hotel. 4hutto who had planned 5sian &ames in slamabad went out of the way to sanction the loan. The 6hite Paper on Lconomy released in 1CGC by <ia ul Ha) accused 4hutto of sanctioning a loan to Hashwani Hotels despite ob1ections by the Pakistan 4anking 'ouncil that Hashwani brothers were already defaulting in an earlier loan from >nited 4ank 0td, in respect of another of their trading concern. 4ut 4hutto decided that the >40 should not link up the default of the other concern of the sponsors with the underwriting of shares of Hashwani Hotels. 5 loan of Bs 1C.A million was sanctioned by n!estment 'orporation of Pakistan. *ew years later, it was <ia ul Ha) go!t that sanctioned a loan facilitating Sadaruddin Hashwani to purchase Pakistan Ser!ices 0td. That catapulted him the top of the hotel industry in Pakistan.

Success &actors:
He was a pioneer of fi!e star standards of hotels in Pakistan decades ago. 8ery few people were aware of *i!e Star Standards at that time. ;ue to Hashwani#s !ision and hard work, these standards ha!e not only been maintained o!er the years but are still shinning bright as always. His hotels ha!e dynamic appeal with unparalleled record, thanks to his uni)ue management and leadership style. This rare brand of talent, together with deli!ered e%cellence, can !ery aptly be classified as EHashwani#s *i!e Star &old Standards of (anagement and 0eadershipI. 2ne e%ample of that is after Prime (inister <ulfikar 4hutto nationali7ed industries in the 1CG0s and (r. Hashwani started in!esting in those businesses not yet nationali7ed, like te%tile, minerals and real estate. EPeople thought was mad Pat that timeQ but knew what

1= was doing,I he says in his plush office in the twin Lmirates Tower in ;ubai. (r. Hashwani#s success lies in two factors3 one, his ability to foresee a good business opportunity when no one else can--supplying wheat and rice to the small port of &wadar in the 1C@0s decades before a go!ernment would see the potential of de!eloping the areaand his determination to soldier on in the face of ad!ersity. He credits this simply to faith. E get my strength from &od,I he says.

$ecommendations:
(r. Sadruddin Hashwani had changed intercontinental to pearl continental a local name gi!en by him to his hotel to sa!e himself from royalty because they were charging a great deal of money. He could also gi!e local name to (arriot and promote his own name through the world by establishing his own standards without following others. n my point of !iew e!ery successful organi7ation has satisfied and courageous employees at their back end. So organi7ations should stri!e to build satisfaction among the employees by gi!ing them incenti!es for better work. The Hashoo group doesn#t maintain and encourages performance e%cellence in form of monetary terms. There is a formal performance appraisal form for all employees, and this is tied to a reward system. t is my !iew that there are se!ere problems with the performance appraisal form in that it is !ery sub1ecti!e in nature. 4ecause of the sub1ecti!ity the system can lead to gross errors, and since this is linked to reward system, the error is not only perpetuated but e%aggerated.

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$eferences:
http3RRwww.pakistanileaders.com.pkRprofileRSadruddinSHashwani http3RRwww.urbanpk.comRforumsRinde%.phpRtopicR.@.-inter!iew-sadruddin-hashwanichairman-of-hashoo-groupR http3RRwww.linkedin.comRpubRsalman-saeedRaR=abR1.= http3RRdc1CG.=shared.comRdocRpt 6tDk;Rpre!iew.html $a.yimg.com%k&%groups%'()*++,*%...%Sadruddin-Hashwani.doc www.hashoogroup.com www.psl.com.pkRdirSchairman.php