NA0367

t
os
Qadri-Group: Sustaining Beyond the
First 100 Years
Muhammad Shakeel Sadiq Jajja, Lahore University of Management Sciences

rP
Syed Zahoor Hassan, Lahore University of Management Sciences

I
n November 2011, Rizwan Qadri, marketing director and a third generation
family member of the Qadri-Group (QG) board of directors was preparing his

yo
suggestions regarding the Family Constitution1 for the coming weekly meeting of
the Group’s Family Council. Rizwan had initiated and advocated the idea of develop-
ing a Family Constitution since the family was facing a number of complex matters
that required prompt attention and decisions.
Rizwan’s grandfather, Karim Bukhsh Qadri, and great-uncle Hussain Bukhsh Qadri
started the business as a small foundry more than 100 years ago in Lahore, Pakistan.
As the QG leadership passed through three generations (see Exhibit 1), the family
op
evolved some shared values, policies, and governance structure. A number of develop-
ments in the family during recent years had resulted in several new challenges to keep
the family and business together in the years to come. Firstly, the Group’s decision
of not allowing female members of the family to participate in business matters had
created many complications. Progeny of Asim Qadri, a cousin of the third-generation
who only had daughters, would not have any participation in the Group business
tC

matters after his demise. The policy of not permitting the family women to partici-
pate in the family business governance kept a well-educated and aspiring daughter
of Rizwan Qadri from employment in the Group’s companies. The wife of deceased
Kashif Qadri, a cousin from the third-generation, was also not permitted to take part
in the Group’s business governance though she and her two daughters had inherited a
share in the business after the death of Kashif Qadri. Despite discouragement from a
majority of male family members, educated daughters and daughters-in-law from the
No

third- and fourth-generations showed keen interest to work in QG companies.

Secondly, cousin marriages, which kept the family close-knit, and retained the share
of female family members, even after marriage, had come to a halt. It was anticipated
that following the Islamic Sharia, daughters of the fourth-generation would inherit
almost half of the QG’s assets. Five male cousins of the fourth-generation had already
married outside of the family. These marriages had brought social diversity in the QG
Do

Copyright © 2015 by the Case Research Journal and by Muhammad Shakeel Sadiq Jajja, and Syed Zahoor
Hassan. The authors want to express sincere gratitude to the Qadri Family for freely sharing their family
and business details. Also, the authors are thankful to Professor Robert Blunden and anonymous review-
ers for their valuable comments and suggestions on earlier versions of this case. This case is intended
to stimulate class discussion rather than to illustrate effective or ineffective governance of family and
business.

Qadri-Group: Sustaining Beyond the First 100 Years 1

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 family. Some of these daughters-in-law also aspired to work in the Group companies

t
and develop their professional careers. Hence, the Group needed to create a mecha-

os
nism to deal with anticipated involvement of out-of-family in-laws in the QG business.
Thirdly, as of 2011, all male members from the fourth-generation were hired at
the same salaries and designations, regardless of their educational and professional
qualifications. For example, salaries and designations of Muhammad Ahmad Qadri
and Faizan Qadri, both of whom had postgraduate qualifications in engineering and
business administration from the UK respectively, were no different from other male

rP
cousins of the fourth-generation with only basic college education.
Issues such as employment of daughters and daughters-in-law in the business,
compensation for family members, competitive and merit-based career planning were
increasingly being raised by the family members.
In 2011, QG owned eight companies and was operating in local and international
sugar plant manufacturing markets. On the business side, QG’s sugar plant manufac-
turing business faced new challenges and opportunities nationally and globally. In the

yo
national market, very few new sugar plants were being set up in Pakistan. The Group
was considering the option to venture into manufacture of equipment for Pakistan’s
cement sector. This option would require new technology acquisition and sizeable
initial investment. In the international market, opportunities for export of sugar man-
ufacturing equipment to some African countries had also emerged. Rizwan Qadri was
confident that QG collectively had most of the needed resources and capabilities but
still had to acquire new technology to benefit from these emerging opportunities.
op
Rizwan strongly felt that in order to address the business-related challenges and
opportunities effectively, it was important to address the issues of family. He also felt
that a formal Family Constitution needed to be laid down and that policies and mech-
anisms were required for this purpose. He had discussed this matter on many occasions
with his cousins earlier and found them receptive to the idea. Hence he had taken it
upon himself to drive the initiative to formulate the Family Constitution.
tC

He was eager to present suggestions to the Family Council on how these chal-
lenges could be addressed in the Family Constitution. Also, he realized that process
of development of a mutually agreed Family Constitution would take time. Hence he
wanted to formulate and submit his suggestions to the family at the earliest—in the
next Family Council meeting.

Early Evolution of QG: Period 1896–1947

No

QG’s beginnings could be traced back to 1896, when two brothers, Hussain Bukhsh
and Karim Bukhsh, worked as apprentices at a tiny crucible-melting shop for house-
hold items owned by Baba Azeem (see Exhibit 2). Baba Azeem was their teacher and
mentor, or Ustaad in Pakistani words. When the Ustaad passed away he left the business
to the two apprentices as equal partners (see Exhibit 3A). It was at this time that, as
desired by their spiritual leader, the two brothers named the business Qadri2 Foundry.
Do

First Separation of QG Business

The twilight years of the British Rule in India were tough times for small businesses
like Qadri Foundry, as new projects stopped. The brothers parted ways to set up their
separate businesses in 1936, but chose to live together and keep the family connected
through cross marriages.

2 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Cousin marriages were common in Pakistani culture for many reasons. They were

t
considered a pragmatic means of tying the families together. It was considered that

os
even with a very serious dispute, the marriage bond would keep them together. Cousin
marriages kept ownership of the family assets within the family. Similarly, in family
businesses, cousin marriages would trim the involvement of the out-of-family-in-laws
of daughters in the ownership and business matters. Three of Karim Bukhsh Qadri’s
sons married Hussain Bukhsh Qadri’s daughters. With the exception of Karim Bukhsh
Qadri’s oldest son, who died without an offspring, the remaining five sons shared the

rP
ownership and management of the Qadri Foundry business as illustrated in Exhibit 1
on the Qadri family tree.

Early Expansion and Demise of Three Second-Generation

Brothers: Period 1947–1987

yo
Early Business Expansion
After the creation of Pakistan in 1947, the family business expanded and setup new
metallurgical foundries in the industrial areas of Lahore and Karachi (located nearly
1,200 km from Lahore). In 1956, a new foundry-facility under the name of Qadri
Brothers Foundry was established in the Sindh Industrial and Trading Estate, Paki-
stan’s first organized industrial estate in Karachi (see Exhibit 3B).
op
Diversification and Commercial Steel Production
By the mid-1960s QG had gained the capability of casting both steel and cast-iron and
had diversified their business. A steel rolling plant named Qadri Brothers Ltd. located
at the Badami Bagh Industrial Area in Lahore was established in 1965. The opening of
Qadri Manufacturing Corporation (Pvt.) Ltd. in 1981 was another milestone in the
tC

Group’s life as the Group entered commercial steel production.

Death of Three Second-Generation Brothers and Signs of Mistrust

Ameer Bukhsh Qadri and Muhammad Irshad Qadri died in 1966 and 1978, respec-
tively. Although the ownership of the assets of both the brothers transferred to their
descendants, their brother, Ahmad Bukhsh Qadri, took charge of managing their busi-
ness matters. In 1979, Rahim Bukhsh Qadri died childless and his share of assets were
No

divided among his five brothers. One-fifth of Rahim’s share were given to his adopted
son, Muhammad Ayaz Qadri, who was also his younger brother. The remaining four-
fifths of his share was equally divided among his five brothers or their descendants.
By this time, many among the third-generation male members had started playing
an active role in the management of the family business but with varying degrees of
effectiveness. According to a third-generation family member:
The business style of a few male family members from the second- and third-generation,
from Karachi, was whimsical and financially non-transparent. A male family member
Do

from the third-generation, who was accused of being involved in drugs lost millions of
Rupees. In 1987, just before his death, Muhammad Iqbal Qadri, the most enterpris-
ing male member of the second-generation who was managing the Group’s business in
Lahore, demanded separation of his business assets from the Group. Ahmad Bukhsh
Qadri, who was the eldest at that time, was soft and lacked the vigor needed to resolve

Qadri-Group: Sustaining Beyond the First 100 Years 3

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 the family’s issues and we remained unable to settle our differences and that led to a

t
split in the family business.

os
Second Separation of QG Business: Year 1988
In April 1988, when the last remaining two male members of the second-generation
were still in good health, the Qadri-Family agreed to division of its business and

rP
non-business assets. The cousins owned five companies; Qadri Foundry Ltd., Qadri
Brothers Ltd., Qadri Foundry and Workshop, Qadri Forge, and Qadri Manufacturing
Concern Ltd. Three different family groups emerged in the division process: Group
A, consisting of the families of Muhammad Irshad Qadri, Ameer Bakhsh Qadri, and
Ahmed Bakhsh Qadri; Group B, consisting of the family of Muhammad Ayaz Qadri;
and Group C, consisting of the family of Muhammad Iqbal Qadri. The members in
these family groups shared ownership and governance of the five companies within

yo
the groups. Group A, owning Qadri Foundry Ltd. and Qadri Brothers Ltd., Group B,
owning Qadri Foundry and Workshop, and Group C, owning Qadri Forge and Qadri
Manufacturing Concern Ltd. as illustrated in Exhibit 3C.
As per Islamic sharia, the share of the female members of the third-generation of
Group A was determined in terms of the weight of gold based on the April 1988 valu-
ation of the family’s business and non-business assets. One-eighth of the total assets of
the deceased male were given to his widow. The remainder (seven-eighths of the total
assets) was distributed among children in such a way that each daughter got half of
op
each son’s share.
The highest share determined among all third-generation female cousins of Group
A was approximately worth 18 kg of gold in 1988. After a consensus among the Group
A family members, this was set as the standard. All third-generation female members
of Group A, including those who otherwise would have gained a smaller share accord-
ing to Islamic sharia, became entitled to 18 kg of gold each (approximately worth 0.25
tC

million USD in 1988). After agreeing to pay the shares of their sisters in terms of the
weight of gold in the following years, the third-generation men of Group A became
equal shareholders of the collective business and non-business assets of their fathers.
This 18 kg share, in terms of gold, of each third-generation Group A female member
was being paid to them in yearly installments in terms of weight of gold. Every fol-
lowing year after 1988, Group A gave a certain amount of gold to each female cousin
and deducted the same from her 18 kg gold entitlement. Completion of payoff was
No

expected by the year 2015. Third-generation males of Group B and Group C followed
a similar methodology for the third-generation women in their respective groups.
Although businesses were separated, the Qadri families of all the three groups con-
tinued to live together in one big house in Lahore. Common food was cooked by elder
female family members in big cauldrons in the single kitchen for the family members
of all the cousins.

Transitions: Period 1989–2003

Do

The year 1989 witnessed the birth of Qadbros Engineering (Pvt.) Ltd., a new com-
pany owned by Group A of QG. In 1991, a “Technology Partnership Agreement” was
signed between Qadbros and Škoda and the family-business began to extend overseas.

4 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 In 1997, Fletcher Smith UK, a leader in cane sugar technology, teamed up with Qad-

t
bros and QBL to setup a sugar mill in Ghana (see Exhibit 2).

os
Reunification and Demise of Two Third-Generation Cousins:
Period 2004–2011
Reunification and Expansion

rP
After the death of Muhammad Ayaz Qadri, Ahmed Bakhsh Qadri (of second-gener-
ation) called a meeting of twelve third-generation cousins in August 2004 to reunite
them to pursue new business opportunities. All twelve male members were asked
to join hands in setting up Qadri Engineering Ltd. (QEL) to tap the rising market
demand in the local market and anticipated opportunities in the international market.
All third-generation cousins were asked to announce the amount of funds they
could afford to invest in the family business. After everyone, except one, had announced

yo
the maximum amount of money he could invest, the smallest amount was selected as
the standard unit. The twelfth brother did not have any money to invest in the busi-
ness. Ahmed Bakhsh Qadri invested the standard unit amount on behalf of the twelfth
brother, giving the twelfth brother equal share in the new venture. Hence all third-
generation cousins had equal share (one-twelfth) in the new company.
However, even after combining these investments, the collected amount was 0.65
million USD and the amount required for setting up QEL was 2.2 million USD. The
op
remaining money was borrowed from Qadbros as an interest free loan to be paid at
some time in the future.
Qadcast (Pvt.) Ltd. was established in 2006 on the basis of equal partnership
among the twelve male cousins of the third-generation to share the casting load of QG
with Qadri Brothers Ltd. Additional investment was taken from Qadbros as an inter-
est free loan. According to Rizwan Qadri:
tC

We increased our capabilities during the partnership [with Škoda] period. In March-
2007 the company exported the world’s largest Qadri-Design sugar cane crusher
weighing over 350 tons to Louisiana U.S.A. This extraordinary feat was the outcome of
a joint effort by all QG companies.

Death of Two Third-Generation Cousins

No

In January 2007, Kashif Qadri, the youngest among the twelve sons, passed away at
the age of thirty-eight, leaving behind his widow and two very young daughters. Asim
Qadri, brother of Kashif Qadri, took over responsibilities as a guardian of Kashif ’s
family. In 2011, Muhammad Fayyaz Qadri, the eldest among the twelve cousins of
the third-generation, also passed away leaving behind his widow, one son, and four
daughters.
Rizwan Qadri described the ownership status of assets of the deceased as:
Though we consider the descendants of our deceased brothers as owners, the share
Do

certificates have not been legally transferred to them. We are working towards pass-
ing a resolution that the descendants of the deceased own their share in the various
group companies as determined from their inheritance. Their shares will be determined
according to Islamic sharia. Meanwhile, every month a monthly dividend is given to
the wives of the deceased cousins.

Qadri-Group: Sustaining Beyond the First 100 Years 5

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Business Landscape in 2011

t
Historically, QG had been working in sugar plants and parts manufacturing. Sugar

os
mills in Pakistan operated during the November to March period and undertook
planned maintenance from April to September every year. Hence, local demand for
consumable parts for sugar plants remained high during these months only. However,
when sugar mills were shut down in Pakistan, the mills in many other parts of the
world continued their operations and gave export business to QG (see Exhibit 4). In

rP
the sugar sector, QG was getting much of its business by virtue of its technological
partner, Fives Cail, that obtained orders from customers, and got the job done by QG.
Customers in the sugar sector of Pakistan relied on QG because they knew that QG
had Škoda’s design, and technology partnership with Fives Cail. Recently, QG had
explored a turnkey project opportunity to install a sugar mill in Sudan. QG’s man-
agement felt they were not ready to take complete responsibility of this project, and
contacted F. C. Shepherd (an American based company that was the main contractor

yo
for Kenana Sugar Plant Sudan of 427,000 kMT per day capacity) to became a part of
the project team. QG aspired to lead such projects in the future, once it had acquired
the needed capabilities and financial resources.
QG had the opportunity and capability to manufacture consumable parts and
components for the cement industry throughout the year. On the other hand, manu-
facture of plants or machine parts for the cement industry required more advanced
technical skills and knowledge. The current machines, furnaces, and equipment at QG
op
were not capable of producing some important parts for cement plants. Foreign tech-
nology partnerships and an investment of 2.2 million USD were required to develop
the needed capability to manufacture these plant and machine parts.

The Family Philosophy and Decision Making

tC

In 2011, the QG board consisted of ten surviving third-generation male cousins. Each
company in QG had a managing director, who was from the third-generation male
members. The directors as well as managing directors were informally responsible to
the board for their performance. In total, Qadri family had eighty living members
from various generations (Table 1).

Table 1: Living QG Family Members in 2011

No

Sons Daughters Daughters in Law Out of Family Total

Sons in Law
Second 0 0 2 0 2
Generation
Third 10 11 6 (out-of-family) 5 32
Generation
Fourth 11 24 5 (out-of-family) 6 46
Generation
Do

The Family Council, consisting of ten male cousins of the third-generation, met
every Wednesday, with the family head in the chair. The council discussed business as
well as family matters. The family head was chosen unanimously for life by the council
members. Rehan Qadri, eighth eldest in the third-generation, was selected as the head
in 2005 upon the death of his uncle, Ahmed Bukhsh Qadri.

6 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 The meeting started with the recitation of a few verses from the Holy Quran.

t
During the first half of the meeting—which was named as the junior board meet-

os
ing—fourth-generation working male members were permitted to sit with the Family
Council to raise and discuss family and business matters. After the fourth-generation
members left the gathering, The Family Council proceeded with discussion on the
family’s common matters, followed by one on the group’s business affairs. All major
decisions, including those regarding inter-company matters, new investment ideas,
and anything that could significantly impact any particular company, were made in

rP
the Family Council meeting. Imran Qadri, a member of the Family Council, described
the composition and dynamics of the Family Council as:
There are eight members in our Family Council who regularly attend weekly meetings
and actively participate in the decisive voting process on all business and common-
family related matters. Two members are very active, persuasive, and argumentative and
bring new ideas and proposals. They fight to seek support of others for their proposals.
Four are open-to-be-convinced and Rehan Qadri, the family head, is one of them.

yo
These open-to-be-convinced members debate with the ones who bring new idea(s) and
keenly assess their suggestions. The remaining two are agree-to-be-convinced. They are
generally passive and follow the majority trends. Hence, practically speaking, to get a
proposal through, the first two have to sell their proposal to the open-to-be-convinced
group of four.
The Family Council had given financial autonomy to all of the family-households.
Third-generation male members were allowed to exercise free will in spending their
op
salaried income and share of earnings from the group’s business. However, the family
members were obliged not to pursue their own private businesses or develop their out-
of-family-business income sources. Each family member, if employed in the Group
business, drew a salary for running his household.
The family head chaired all Family Council meetings, where he tried to achieve
consensus. In the frequent event of consensus not being achieved, the family head
tC

made the final call. Since the Family Council’s inception, the family head’s decision
had never been challenged. According to Rehan Qadri (family head):
We don’t pursue an activity unless we achieve at least 85 percent agreement among
the Family Council members. If we don’t reach consensus in the Family Council in a
meeting, we let the conflict pacify for a period varying from 4–5 days to six months to
a year, unless it is urgent.
It was agreed in the Family Council in 2011 that a Family Constitution was needed.
No

According to Rizwan Qadri:

We have to develop a system, the Family Constitution, which can provide a basis to
sustain growth of our family business for another hundred years.

Developments in the Family and the Family Philosophy

Separation of Houses. The Qadri family had lived together in an ancestral house
located next to Qadbros at Badami Bagh, Lahore for over a hundred years. As the
Do

family expanded and requirements of Qadbros for more land increased, the cousins
vacated the house to give more land for expansion to Qadbros in 2004. According to
Noor Ayaz Qadri, a fourth-generation Qadri:

Qadri-Group: Sustaining Beyond the First 100 Years 7

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 On leaving the common house everyone of us preferred to live at Izmir Town, a middle-

t
class residential area, even when many of us could financially afford to live in elite

os
residential colonies of the city. We sacrificed our personal preferences for the family
unity. We are not only fair to the family, we are fair to the country too. None of us has
foreign nationality and we believe in strong connection with our land. We have also
allocated a piece of land for family graveyard in Izmir Town.
According to Faizan Qadri from the fourth-generation:

rP
All men of the fourth-generation have gone to the same school. Similarly, our family’s
women have gone to the same school. Since now we are living in separate houses here
and our interaction with each other has shrunk, I fear the level of trust and warmth of
relationships among us may go down in future—we may disagree on things on which
we agree today.

Qadri Women’s Role in Business

yo
In 2011, QG’s business ownership was under the male cousins from third-generation
(or their descendants in case of their death).
The Qadri women had no role in the family business’s administration. However,
women from the third- and fourth-generations were allowed to seek modern educa-
tion and work outside the Group. For example, a daughter of Rizwan Qadri who had
graduated in economics from a leading university of Pakistan was working outside
the Group. Similarly, one female cousin from the third-generation was independently
op
running a not-for-profit forty bed welfare hospital. Rizwan Qadri expressed his views
on the role of women in business:
Although our family’s women are very well educated, they are not the business-doing
type. Our family’s women do not bother to take time out from their activities like shop-
ping and lacing clothes. On top of it, when they get married, they are busy with kids
and managing the household as well. I have experimented with involving them in the
tC

business. I engaged wives (who are from outside the family) of two third-generation
cousins to assist me in business, but their attitude was as if they were doing me a favour
whenever they spared even an hour for the work. Also, they wondered why they had
to manage their household as well as spend energy in business while the other females
were managing households only. On the other hand, I also understand women have
more patience and perseverance to take up challenges, but these qualities will not show
up in our case as our family’s women are not under any financial burden.
No

Quoting the advice of Syed Wajid Ali Shah, who was a leading figure from a highly
respected business family of Lahore, a childhood fellow of the second-generation
Qadri brothers, and a mentor of the family, Rizwan Qadri stated:
Never involve women in business matters.
Shahbaz Qadri, from the third-generation, expressed his views as follows:
Though our daughters are well educated, they ought to go to their husbands’ homes
and live there. If they want to get a job they can go anywhere outside the Group com-
panies. . . . But see I am childless—this is not my matter. In case their father wants
Do

them to work in the Group companies, I shall keep my mouth shut.

However, Faizan Qadri, a fourth-generation family member, had a different opin-
ion on this topic:

8 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 While I agree that daughters should not be permitted to work in the family business,

t
daughters-in-law should be welcome to work. For example, if my bhabhi3 wishes to

os
participate in the family business, the family system should not stop her. I shall think
similarly for my wife too. I understand the nature of our business is rough but they can
perhaps work in HR and marketing.
Asim Qadri, who had daughters only and looked after the family of the deceased
Kashif Qadri as well, had earlier expressed his take on the involvement of fourth-
generation daughters in the business:

rP
I want to inherit ownership as well as be able to transfer my management role in QG
business to my daughters. If my daughters do not receive both roles in the family busi-
ness, what are they left with to do in the family after my death? I think similarly for the
daughters of Kashif Qadri. Furthermore, what if a daughter from the fourth-generation
chooses not to marry? My point is that males and females should be provided equal
opportunities to seek employment in the Group companies. If we really separate the
right to own and the right to manage, this concern will be automatically resolved.

yo
In recent family meetings four daughters-in-law from the third-generation had
shown their eagerness to work in the family business, but complained of a lack of sup-
port from the Group companies. They too considered their commitments at home as
an obstacle to their full-time employment with the Group. According to the widow of
Kashif Qadri:
I was involved in the design and construction of our head office building. I did not
op
find it very interesting—there was no learning and professional growth. I appreciate
that I did not understand the technical work but had I been given an opportunity
to learn, I could learn. I lost my motivation and reverted back to my small boutique
business. I am doing that boutique business from home and hence I can monitor my
young daughters when I am working. Now I might not want to come back to the fam-
ily business.
Asim Qadri’s wife, a third-generation daughter-in-law, described her perspective:
tC

After my marriage, I worked with a bank for eight years in the area of international
trade, which is exactly what QG is doing right now. Then I had to leave that job because
I could not manage it after the birth of my first daughter. Now I can perhaps think of
joining QG in the same area but not for the next two to three years as my youngest
daughter is only one year old. But the thing is, our group does not pay salaries to the
family women for the work that we do for the group. For example, a daughter from the
fourth-generation whose education was relevant to group’s requirements, chose to work
No

outside the group at half the salary of what a similarly educated male could get within
the group. She did so because her father told her that she would not be given any salary
if she worked for the group.
Mubin Qadri’s wife, a third-generation daughter-in-law added:
I too spend two hours a day in office to look after administration matters of the QG
head office but I am not paid anything for this service except a mobile phone and a
lovely office.
A third-generation daughter-in-law expressed her views:
Do

Boys do not have to prove their abilities to get employment in the group. Where would
the motivation to work here come from for the family women then? Is this not dis-
crimination? Perhaps our views are different because we have daughters only. Those
with son(s) may take it differently.

Qadri-Group: Sustaining Beyond the First 100 Years 9

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Another daughter-in-law contributed to the discussion, while others nodded

t
affirmatively:

os
If some incompetent boys of the fourth-generation with dubious educational degrees
can join the group companies and might become competent after a lot of training over
time, then what is wrong with giving training and opportunities to the aspiring and
educated female family members? Similarly, what is wrong with women asking for flex-
ible work-hours if some boys go to their offices at 11 a.m. or 12 noon in morning and
come back at 3–4 p.m.?

rP
One more daughter-in-law pitched in the discussion and received nods from the
fellow daughters-in-law:
If it goes unchanged, what is the support program for those with daughters only?
The wife of Muhammad Irfan Qadri and a third-generation daughter-in-law, stated:
We are short of boys. We have more daughters than sons. So I think we should give
a chance to our daughters. Also, we should be allowed to work with flexible hours so

yo
that when our husbands come back at home in the evening they find everything in the
house in order.

Involvement of in-laws
The trend of family marriages had reduced significantly in Pakistani society in recent
years. Contrary to the past, educational and personality compatibility of the pair was
op
gaining more importance in marriage decisions, thereby reducing the probability of
finding a decent match within the family. Moreover, since medical research argued that
cousin marriages were leading to physically impaired children, this too contributed to
the decrease of such unions.
The fourth-generation was getting married outside of Qadri family. As a result,
involvement of out of the family in-laws, especially from the daughters’ side, in the
tC

ownership, and potentially in governance of the business, was anticipated. It was con-
sidered an important concern as a few cousins of third-generation only had daughters.
According to Noor Ayaz Qadri of the fourth-generation:
I don’t want to talk business with my brother-in-law. He is at a position of respect and
regard to me and I fear that the relationship may not remain comfortable if he starts
participating in the family’s business governance where disagreements are common.
Rizwan Qadri of the third-generation also articulated his views:
No

We anticipate outside family members from in-laws of fourth-generation or relatives

from the broader family might be interested in joining the QG business as shareholders
as well as employees. We must have a criterion for including them, if we have to include
them. Similarly there should be an exit strategy if anyone wishes to take out their share
in the business and/or set up a competing business.
Faizan Qadri of the fourth-generation added another dimension to the debate:
If for any reason such as in case of God forbid, death of a third-generation male mem-
ber, fourth-generation females with their free will or by compulsion from their in-laws
Do

choose to take out their share from QG, QG will be left with great financial challenges
given that we have a commitment not to take loan from banks.

10 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Recruitment and Compensation of the Family Members at QG

t
The Qadri family cousins from the fourth-generation, working at various positions

os
in the Group companies, were salaried employees of the companies. Every employed
family member from the fourth-generation started his career at the assistant manager
(AM) level with a monthly salary of PKR 25,0004 and a company car. In 2011, all
employed family members at the AM level had working experiences ranging from
none to four years. However, their educational qualifications were quite diverse. For

rP
example, one had started working after obtaining a master’s degree in mechanical engi-
neering from Imperial College London; another had not continued education beyond
twelfth grade. So far the Qadri men were not permitted to pursue their professional
career outside the Group companies.
According to Muhammad Ahmad Qadri from the fourth-generation:
Some people want to be differentiated from the rest in the group. One person among
our generation is not satisfied with this system of everyone getting the same designa-

yo
tion, salary, and rewards on joining the family business as an employee. If he remains
unsatisfied consistently I fear he may go for a solo flight. He wants to gauge his capa-
bilities outside the family business.
According to Rizwan Qadri:
Since the fourth-generation has diverse academic and business acumen profiles, uphold-
ing merit, qualification, and performance based reward system and discouragement of
“free rider” tendency will be a serious challenge soon. We want to clearly separate the
op
Right to Own and the Right to Manage.
Rizwan Qadri’s daughter, a fourth-generation family member who is working as a
human-resource professional outside the Group, expressed her opinion on recruitment:
If governance and ownership are two separate matters, then one gets evaluated for
employment on merit and this might open up work opportunities for family women.
People might disagree with me on that but I think there should not be an equal divi-
tC

sion of the pie and one must be rewarded based on one’s competency and performance.
On the contrary, Faizan Qadri, a fourth-generation male, had expressed his stand-
point on measuring competency and performance in a different way:
Performance of a family member employee and that of non-family member employee
cannot be compared. A family member can serve QG on two fronts: family and busi-
ness. For example, Irfan Qadri spends time in managing the household needs of his as
No

well as the house of Rizwan Qadri, who spends most of his time at work and in travel-
ling as the group’s director marketing. We cannot say either of them is performing less.
Asim Qadri, a third-generation male, expressed his fear:
Compensating all fourth-generation male members equally will not work in the long
run. Even if the fourth-generation males will accept this parity, their families might not.
For example, I am afraid that the wives, who are coming from different families and
value systems, of highly educated fourth-generation males will instigate their husbands
as to why they are getting salaries equal to the lowest educated cousin in the group.
Even if their wives swallow this family ideology of equal salaries, their kids might not.
Do

Qadri-Group: Sustaining Beyond the First 100 Years 11

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Conclusion

t
os
In 2011, QG was facing challenges on multiple family and ownership fronts: the
family had already expanded to a size of eighty members (forty-six were from the
fourth-generation) making the achievement of consensus on various issues more and
more difficult; differences in the individual education levels in the fourth-generation
was testing the limits of existing policies of hiring, promotion, and compensation of
family members; outside-the-family marriages were bringing more ideological diver-

rP
sity into the family’s value system and posing potential challenges to the existing family
philosophy; contrary to the male dominant philosophy of keeping the family women
from governance of business, educated daughters and daughters in law of the fourth-
generation wanted to participate in the family business; and it was not clear as to if and
how the right to participate in business governance will transfer to the fourth-generation
daughters or their in-laws, particularly in case of the third-generation cousins who had
daughters only.

yo
In the meanwhile, QG business faced new growth opportunities and challenges.
In order to benefit from these business opportunities, the family-related challenges
had to be addressed quickly. QG needed to develop a more comprehensive and last-
ing mechanism for managing family and ownership matters so as to concentrate the
group’s efforts towards growing the business.
As Rizwan Qadri was preparing for the forthcoming meeting of the Family Coun-
cil, he recalled a discussion during a previous meeting where Imran Qadri had said:
op
Our fourth-generation is very different from the third-generation. Like everywhere in
the society, the tendency to sacrifice and play fair is reducing. We need to have clear
guidelines to resolve issues that may emerge in future so that our future generations
can stay together.
Rizwan Qadri had added to the discussion:
tC

Marriages are not going to be a bond between us and next generation anymore. It is
money which is going to keep us together. Hence it is best that we focus on bringing
prosperity to the QG businesses to keep us united. A Family Constitution will be an
enabler to resolve family conflicts as we move forward.
Rizwan Qadri wondered what specific recommendations he should make to the
Family Council to resolve these issues through a formulation of a Family Constitution.
He also pondered about the process that should be followed to arrive at this constitu-
No

tion. He had stated in the last meeting:

Complexity in the family and business is increasing. As a result, things on which we can
agree today, we might not agree on them tomorrow. We need to formalise the Family
Constitution now.
Do

12 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860

Exhibit 1: QG-Family Tree of Sons Over Four Generations (As of 2011)

Karim Bukhsh Qadri Hussain Bukhsh Qadri

Do
son of Muhammad Bukhsh son of Muhammad Bukhsh Generation
(1877–1970) (1875–1953) I
no schooling no schooling
(1 daughter)

Rahim Bukhsh Qadri Ameer Bukhsh Qadri Ahmad Bukhsh Qadri Muhammad Iqbal Qadri Muhammad Irshad Qadri Muhammad Ayaz Qadri
(1906–1979) (1919–1966) (1921–2005) (1924–1987) (1931–1978) (1936–2004)
primary education primary education primary education primary education BCom primary education II
(1 son adopted from (4 daughters) (1 daughter) (3 daughters) (3 daughters) (1 daughter)
Muhammad Ayaz Qadri)
No
Muhammad Muhammad Muhammad Mobin Qadri Rizwan Qadri Muhammad Muhammad Muhammad Muhammad Asim Qadri Kashif Qadri Muhammad
Fayyaz Qadri Shahbaz Riza Qadri (1962) (1957) Irfan Qadri Imtiaz Qadri Imran Qadri Rehan Qadri (1966) (1968–2007) Amir Qadri
(1951–2011) Qadri (1960) MBBS BBA (1962) (1957) (1960) (1962) BSc BSc (1960)
BCom (1956) BA (dropout) (4 daughters) BA FSc BA BA MechEng MetEng FA
(4 daughters) BCom (1 daughter) (no daughters) (1 daughter) (1 daughter) (3 daughters) (2 daughters
III
(1 daughter, (4 daughters) MBA
(childless)
tC
adopted from (2 daughters) and 1 daughter
Rizwan Qadri) adopted from
Rehan Qadri)
op FA

IV
MBA

minor
minor

BCom
BCom

asst mgr
asst mgr
asst mgr
asst mgr
asst mgr
asst mgr
asst mgr

MBA, UK
BSc honors

Faizan Qadri
(adopted son)

A-level student

MetEng student
Gul Iqbal Qadri
Noor Ayaz Qadri

Karim Iqbal Qadri

MSc MechEng, UK
Rahim Iqbal Qadri

Ameer Ahmad Qadri

Azeem Ahmad Qadri

Hammad Ameer Qadri

Mehmood Ahmad Qadri

Muhammad Ahmad Qadri

Muhammad Subhan Qadri

Permissions@hbsp.harvard.edu or 617.783.7860
Generation I Members Generation II Members Generation III Members Generation IV Members
yo
2 sons 6 sons 12 sons 11 sons
1 daughter 12 daughters 24 daughters
3 out-of-family 6 out-of-family 5 out-of-family daughters-in-law
daughters-in-law daughters-in-law

Keys:
rP
Lines connect names of fathers to their sons in next generation. Box of Hussain Bukhsh is dotted as he and his descendants separated them-
selves from QG business from 1936 onwards.
Grey boxes highlight the male members married inside the family.

Qadri-Group: Sustaining Beyond the First 100 Years

Number of daughters of each male member is written below his name. Adopted children show up once only, below the name of their adopting
fathers.
os
Source: Qadri Group

13

t

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
 t
Exhibit 2: Evolution of QG Products, Markets, and Technology

os
Time Period Product Market Region Technology Support (if any)
1896–1910 Petty household items Lahore Smith shop
and farmer’s hand tools.
1911–1935 Drainage pipes for Lahore Casting
private and government

rP
buildings.
1936–1947 Diesel engine and Undivided Punjab Medium and large casting
agricultural machinery
casting.
1948–1965 Various types of existing Pakistan Medium and large casting
casting products.
1965–1980 More focus on commer- Pakistan Steel production
cial steel production.

yo
1981–1990 Refocus on foundry
casting; decline in com-
mercial steel production.
1991 Sugar industry spare
parts and equipment.
1994 First export of cast and
machined parts.
op
1995–1999 Export of sugar indus-
try spare parts and
equipment.
2000–2001 First export of sugarcane
crusher weighing 175
tons and sugar mills
tC
Pakistan Casting and steel production
Pakistan Collaboration with Škoda,
Czech Republic
International and domes- Collaboration with Škoda,
tic market Czech Republic
Central America, West
Indies, U.S.A., Africa,
and Pakistan
Guatemala and local Fives Cail Group (World’s
market leading cane sugar technol-
ogy company)

spares for local market.

2002–2007 Sugarcane crushers. Many tropical countries Fives Cail Group (World’s
and local market leading cane sugar technol-
ogy company)
2007 Export of the world’s larg- Louisiana, U.S.A.
est sugarcane crusher.
2007–2011 Sugar mills, spares, International and domes-
No

equipment. tic market

Source: Qadri Group
Do

14 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 t
Exhibit 3A: QG Business and Ownership Tree (Era 1) 1896–1947

os
1986–1900
Location: Outside Lahore’s walled city
Owner: Baba Azeem

rP
1901–1910
Location: Outside Lahore’s walled city
Owner: Baba Azeem

1911–1935

yo
Qadri Foundry
Location: Wayside Lahore’s Branderth Road
Owners: First generation brothers as equal partners

1936–1947 1936–1970
Qadri Foundry Qadri Foundry
op
Location: Badami Bagh, Lahore Location: Branderth Road, Lahore
Owner: Karim Bukhsh Qadri Owner: Hussain Bukhsh Qadri—shutdown
by his death in 1970
tC
No
Do

Qadri-Group: Sustaining Beyond the First 100 Years 15

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 16
Do
No
Exhibit 3B: QG-Business Tree (Era 2) 1948–1988

1948–1955 1948–1988
tC
Qadri Foundry and Workshop Qadri Foundry and Workshop
Location: Lawrence Road, Karachi Location: Beco Road, Lahore
Owner: Each second generation brother owned one-sixteenth share Owner: Each second generation brother owned one-sixteenth
share (and their descendants after their death)
op
1956–1988 1948–1988
Qadri Foundry and Workshop Qadri Foundry and Workshop

Case Research Journal • Volume 35 • Issue 3 • Summer 2015

Location: SITE Industrial Area, Karachi Location: Beco Road, Lahore
Owner: Each second generation brother owned one-sixteenth Owner: Each second generation brother owned one-sixteenth

Permissions@hbsp.harvard.edu or 617.783.7860
share (and their descendants inherited their share after their death)
1974–1988
Qadri Foundry (Pvt.) Ltd.
Location: SITE Industrial
Area, Karachi
Owner: Equal partnership of
Ameer Bukhsh Qadri, Ahmad
Bukhsh Qadri, and Muham-
mad Irshad Qadri (and their
descendants inherited their
share after their death)
share (and their descendants inherited their share after their death)
yo
1948–1988 1956–1988 1970–1988 1981–1988
Qadri Brothers (Pvt.) Ltd. Qadri Foundry and Qadri Forge Qadri Manufacturing (Pvt.)
Location: Beco Road, Lahore Workshop Location: A. Qayyum Road, Ltd.
Owner: Equal partnership of Location: SITE Industrial Lahore Location: Sheikhupura
rP
Ameer Bukhsh Qadri, Ahmad Area, Karachi Owner: Muhammad Iqbal Road, Lahore
Bukhsh Qadri, and Muham- Owner: Muhammad Ayaz Qadri (and his descendants Owner: Muhammad Iqbal
mad Irshad Qadri (and their Qadri inherited after his death) Qadri (and his descendants
descendants inherited their inherited after his death)
share after their death)
os

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.

Exhibit 3C: QG-Business Tree (Era 3) 1988–2004
Do
Group A
Eight sons of Ameer Bukhsh Qadri, Ahmad Bukhsh
Qadri, and Muhammad Irshad Qadri
No
1988–2011
Qadri Foundry (Pvt.) Ltd.
Location: SITE Industrial
Area, Karachi
Owner: Each cousin from
third generation of Group A
owns one-eighth of this com-
pany (or their descendants)
1989–2011
Qadbros Engineering
(Pvt.) Ltd.
Location: Link Ravi Road,
Permissions@hbsp.harvard.edu or 617.783.7860
Lahore
Owner: Each cousin from
third generation of Group A
owns �����������������������
one-eighth�������������
of this com-
pany (or their descendants)
Qadri-Group: Sustaining Beyond the First 100 Years
17
This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
April 1988
Division of business and nonbusiness assets
between all of three sub-groups of the Qadri family.
Group B Group C
One son of Muhammad Three sons of Muhammad Iqbal Qadri
Ayaz Qadri
1988–2011 1988–2004 1988–2011 1988–1994
Qadri Brothers (Pvt.) Ltd. Qadri Foundry and Qadri Forge Qadri Manufacturing (Pvt.)
Location: Beco Road, Lahore Workshop Location: A. Qayyum Road, Ltd.
tC
Owner: Each cousin from Location: SITE Industrial Lahore Location: Sheikhupura
third generation of Group A Area, Karachi Owner: Each brother from Road, Lahore
owns �����������������������
one-eighth�������������
of this com- Owner: Muhammad Ayaz third generation of Group Owner: Each brother from
pany (or their descendants) Qadri C owns one-third of this third generation of Group
company C owns one-third of this
company
op
2000–2011
Qadri Sons (Pvt.) Ltd.
Location: Lahore
Owner: Each cousin
from third generation of
Group A owns one-eighth
yo
of this company (or their
descendants)
rP
os
t
 t
Exhibit 3D: QG-Business Tree (Era 4): Post 2004

os
August 2004
Reunification of Groups A-B-C (the Group companies retain their status as independent com-
panies) independently retaining their post-1988 division business assets while reuniting to
undertake future expansion on twelve equal stakes basis in the below two companies (Qadri
Engineering Ltd., and Qadcast Ltd.). The number twelve comes from the twelve male cousins of
the third generation of the Qadri family.

2004–2011
Qadri Engineering (Pvt.) Ltd.
Location: Multan Road,
Lahore
Owner: Each male cousin
from third generation owned
one-twelfth of this company
(or their descendants)
rP
2006–2011
Qadcast (Pvt.) Ltd.
Location: Sundar Industrial
State, Lahore
Owner: Each male cousin
from third generation owned
one-twelfth of this company
(or their descendants)
2011–2011
Kashif Trading (Pvt.) Ltd.
Location: Lahore
Owner: Each male cousin
from third generation owned
one-twelfth of this company
(or their descendants)

yo
Qadri Group Companies in 2011
Metallurgical and Foundry Works: Heavy Mechanical Works: Trading:
Qadri Brothers (Pvt.) Ltd. Qadbros Engineering (Pvt.) Ltd. Qadri Sons (Pvt.) Ltd.
Qadcast (Pvt.) Ltd. Qadri Engineering (Pvt.) Ltd. Kashif Trading (Pvt.) Ltd.
Qadri Foundry (Pvt.) Ltd. Qadri Forge (Pvt.) Ltd.
op
Source: Qadri Group

Exhibit 4: Year Wise Exports in 2000s

Year Exports
tC

2000 USD 0.330 million

2001 USD 1.098 million
2002 USD 0.885 million
2003 USD 0.380 million
2004 USD 2.003 million
2005 USD 1.161 million
No

2006 USD 2.141 million

2007 USD 5.010 million
2008 USD 8.530 million
2009 USD 4.730 million
2010 USD 6.990 million
2011 USD 6.694 million
(Jan–Oct)
Do

QG’s slogan was “The World . . . Our Market.”

18 Case Research Journal • Volume 35 • Issue 3 • Summer 2015

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 Notes

t
os
1. “A Family Constitution—the family’s policies and guiding vision and values
that regulate members’ relationship with the business. This written document
can be short or long, detailed or simple, but every family in business benefits
from this kind of statement.” Source: Davis, John. “The Three Components of
Family Governance.” Harvard Business School Working Knowledge, 2001.
2. Qadri is the name of a line of Sufi saints in the South Asia region.

rP
3. Babhi means brother’s wife.
4. In 2011 an approximately average USD to PKR conversion rate was 1 USD =
86 PKR.

yo
op
tC
No
Do

Qadri-Group: Sustaining Beyond the First 100 Years 19

This document is authorized for educator review use only by Abdul Rafay, University of Management and Technology until December 2017. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860