Business Growth
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 Mansha's watch, MCB has demonstrated execution and growth and which has made it one of the premier financial service management teams in the Indian subcontinent.
Mansha has proceeded to venture into new terrain, executing deals with state-owned WAPDA (Water and Power Distribution Authority) to sell excess power capacity generated at Nishat's various power stations. This led to the founding of Nishat Power, which is now a growing business with Mansha's son playing a senior role in the company's executive board.
MCB has also recently started a partnership with Maybank of Malaysia. Maybank now has a 25% share in MCB.
The general perception is that MCB was privatised to Mansha and his associates because of Mansha's social connections with Nawaz Sharif. However, Mansha feels that investing in the shares of Muslim Commercial Bank (MCB) has been one of his biggest business slip ups. The reason for privatising MCB remains a mystery. Nawaz Sharif came into power on November 6, 1990, he invited bids for the privatization of Muslim Commercial Bank (MCB) on 15 December 1990 and subsequently announced its privatization to successful bidder: Messrs Abdullah & Co on 9 January 1991.
The stories from the past suggest that five bids were received for Muslim Commercial Bank with ‘Tawakkals’ and ‘Adamjee’ being the highest and second highest bidders respectively. Adamjee, who formed a joint venture with Yunus Brothers, perhaps the biggest Export Houses in Pakistan, had incorporated Muslim Commercial Bank in 1949. As previous owner, they had the first right of purchase, but third lowest bid by Messers Abdullah and others, a consortium of twelve leading industrialists, mostly from the Punjab. Mian Muhammad Mansha was asked to match the highest bid and was declared the winner. The consortium which called itself the National Group consisted of many industrial groups and their associated families.
Read more about this topic: Mian Muhammad Mansha
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