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  Case Study : Janab A. K. KHAN

Janab A. K. KHAN  our founder chairman is recognized as the pioneer industrialist of Bangladesh. Janab Khan was born on 5 th April, 1!5 in "hittagong . He obtained Bachelor of 

#aw $egree from %residenc& "ollege, Kol'ata (ni)ersit& *tanding first class second in order of 

merit. He practicsed as a +unior with *here eBangla A.K.-. azlul Hu/ and was a closeassociate of Khawa+a Nazimuddin. He entered the Bengal Judicial *er)ice in 105, when he

entered business during *econd orld ar. After independence, he establishes man& industries

in citation and pioneered 2nsurance, ban'ing and *hipping. He was "hairman of %a'istan

2nternational airline.

As an acti)e member of -uslim #eague, he was in)ol)ed in the %a'istan -o)ement in Bangal.

He was %resident of "hittagong $istrict -uslim #eague. He was elected member, constituentAssembl& of 2ndia in 134, which he resigned on the ad)ice of -ohammed Ali Jinnah. He was

reelected as member, %a'istan "onstituent Assembl& of %a'istan in 13. -r. Khan +oined the

first A&ub Khan "abinet 6157489 and held the portfolios of industries, or's, 2rrigation, %ower and -ineral :esources. 2t was during his tenure considerable de)elopment of industries too'

 place in the countr&. He was member of the National Assembl& from 148147 as an opposition

member. He passed awa& on 01st -arch 11 .

;he %rime -inister of Bangladesh Begum Khaleda <ia condoled the passing awa& of Janab A.K. KHAN. *he said =in his death the countr& has lost a renowed industrialist, a seasoned

 politician and social wor'er>.

The Daily Star (Dhaka, Tuesday April 2, 11!

A Tribute t" A. K. Khan:

An important "hapter in Bangladeshi entrepreneurship comes to a close with the death on

*unda& of Abul Kasem Khan.A noted industrialist and politician of "hittagong , whose influence

and reputation e?tended far be&ond his home base as well as the countr& as well a whole. And,indeed, this reputation was of &esterda&s @origin. 2n the da&s when, soon after our independence

from British rule, local businessman of what was then ast %a'istan had found a small place in

the commercial world or in the industrial field. %rimaril& due to lac' of incenti)es, the late -r.Khan emerged as a s&mbol of our nascent pioneering spirit, a spirit that too' se)eral decades toma'e its impact on a nationwide scale in Bangladesh.

;he late industrialist was a highl& successful businessman. 2n a wa&, his commitment to tradeand commerce formed part of his abiding concern for the ad)ance and progress of his people. 2t

is possible that it is this concern that prompted him to in)ol)e him self in politics.

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2n his wide range acti)ities, from business and politics, philanthrop& and social wor', the late

-r. Khan was constantl& guided b& a set of traditional )alues, such as honest&, integrit&, hard

wor' and dedication to dut&. 2ndeed, b& practicing these )alues, the late -r. Khan roup of2ndustries become a model of reliabilit&, while the astern -ercantile Ban', the first e)er east

%a'istan based ban', set up b& the late industrialist , turned out to be a source of inspiration for

the ne?t generation of &oung ban'ers in Bangladesh.

;he late A. K. Khan has left behind a legac& that the new generation of Bangladeshi

entrepreneurs should treat as respect, a legac& that should be a part of our emerging businessculture which must be based on a combination of modern management techni/ues and old

traditional ethics and )alues gains roots in this countr&. e shall loo' upon the contribution of

the late -r. Khan as an 2ntegral part if its foundation.

H"liday (Dhaka, April #, 11!

$ndustrial %i"neer %asses a&ay:

Abul Kasem 'han had man& features in his "apa brilliant academic career, participation in the

independence mo)ement against the British :a+ and against %a'istan o)ernment membershipof the constitution of %a'istan and holding of the post of central minister of the industr&, wor's,

irrigation and power under the %a'istan go)ernment in 57.

2n spite of being bus& of opposition politics, he enlarged and di)ersified his business concerns

and established the A.K.Khan group of industries, which comprises +ute, te?tiles and leathercomple?es.

He founded the astern mercantile Ban', which was the first institution of its 'ind to be based in

Bangladesh. His list of "ommercial and Business achie)ements is too long to be discussed indetail.

An entrepreneurCs mentall& is totall& different from that of a wheelerdealer. ;he latter needcunning, ruthlessness and determination. ;he entrepreneur needs, in addition to all these

/ualities, intelligence, foresight, commitment and patience.

B& producing goods he creates )alue and adds something to the ross $omestic. He pro)ided

much needed emplo&ment and directl& or indirectl& he participates in impro)ing the

infrastructure.

A. K. Khan is remar'able because he was a real entrepreneur in land dominated b& traders and

smugglers. He is a shinning e?ample to all those who do not want to enrich themsel)es at the

countr&Cs e?pense and who belie)e that mone& should be earned b& gi)ing )alue for )alue.

Holida& $eepl& mourns his death and pra&s for the sal)ation of its departed soul.

'ntrepreneurs in $ndia and an)ladesh by Na)"ya *ni+ersity

;he aim of this chapter is to anal&ze the formati)e principles and processes of business groups in

*outh Asia b& comparison of business groups in 2ndia 6-uslim dominant societ&9 and

Bangladesh 6-uslim dominant societ&9. Howe)er, this anal&sis is as &et incomplete. ;herefore,

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in this paper, the author could not but present the data researched and, based on them, some

tentati)e arguments.

;he business groups researched here are the ;ata group 62ndia9, the A. K. Khan group

6Bangladesh9, and the 2slam group 6Bangladesh9. 2n *outh Asia, 2t is )er& difficult to collect

detailed materials on business group because there are, in each group, so man& companies whichta'e the form of pri)ate "ompan& #td. speciall& in the A. K. Khan group and the 2slam roup,

almost all companies are of this t&pe. 2n the case of the pri)ate compan& #td. the companies are

not under an& obligation to open data such as balance sheets, profit and loss statements, etc.;herefore, this time, the author could not but deal mainl& with materials such as the famil& trees

of entrepreneurs, the organization of each business group, and the methods of here control.

;he A. K. Khan business group and 2slam Business roup in BangladeshD 2n tracing the growthof the bourgeoisie in Bangladesh, the focus will be on -uslim bourgeoisie in the Bengali

 population of the region, at the partition of ntrepreneurs in 2ndia and Bangladesh.

Bengali bourgeoisie to further their buildup as a class 6refer to ;able9. 2n the initial phase, themain beneficiaries of this polic& were a small class of Bengali contractors.

A. arou' points out that entrepreneur who are now engaged in the tin& pri)ate sector of modern

industries of Bangladesh can be di)ide into three groupsD

• ;hose families who ha)e been in business or industr& b& tradition and whose children are

now engaged in entrepreneurial acti)ities. ;his group includes a few families li'e the

2spahanies, the 2smailies, the *awadagar, the *ahas. ;heir number at present is small.

• :etried 6or dismissed9 ci)il ser)ants or former politicians and their famil& members. ;his

is a new group who ac/uired mone& and power with which the& procured the necessar& permission, licenses, and loans to start industries during the last three decades. Although

their number is large, their contribution to the domestic econom& is not &et clear.• ;hose who began small but achie)ed considerable success b& their personal efforts within

their own lifetime and ha)e records of successful enterprise.

A. K. Khan and 2slam belong to the third group, though the number of persons belonging to this

group is not large.

Table : The -eadin) en)ali usiness H"uses in 1/0

usiness r"up N". 34 C"5panies 'sti5ated assets ($n 6s. 7illi"n!

A.K. Khan 12 0#

ul Ba'sh Bhui&an 5 45

8ahurul $sla5 1

9akir Chand 1

7abulur 6ah5an ; 8ahurul <ayyu5 #

Al/Ha= 7usli5uddin #

Al/Ha= Sha5su>>"ha # #

Khan ahadur 7u=ibar 6ah5an #

A4il 0

Sattar # ?

Ashra4 ?

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handari ?

Sa4dar Ali 0 ?

$brahi5 7ia 0 ?

Sera=ul $sla5 Ch"&dhury 2#

7"ha55ad Abdus Sa5ad (Delta r"up! # 2#

6*ourceD *obhan, :. Bangladesh Bourgeoisie.9

Ene of the oldest and largest pri)ate sector organizations in the :epublic of Bangladesh and the

group emplo&ed about 4,15! people in 175. ;he inancial profile of the group is shown in ;able5. ;he group is organized into man& di)isions and the manufacturing sector is di)ided into fi)e

di)isions to rationalize production acti)ities and consolidate management A . K. Khan F "o. #td.

 pla&s an important role in the control of the group. As the Holding compan&, it is based in

"hittagong. ;he principal acti)ities of this compan& ha)e been the promotion and acting asmanagingagent for the di)erse units of the group.

Table: # State5ent Sh"&in) 9inan@ial %r"4ile "4 A.K. Khan r"up

9is@al year%aid/up @apital (Tk.$n

7illi"ns!

T"tal turn "+er (Tk.$n

7illi"ns!

Annul turn "+er (Tk.$n

7illi"ns!N"."4 e5pl"yees

1# #

1## .2# 1?. 2,1#

1# 1?.02 #.2 ,?#

10# 1?.02 0.02 ,#

1# ?.?2 2?.21 #. ,1#

 NoteD Number at the end of each iscal &ear are shown.

-eanwhile, A. K. Khan is the "hairman of all companies and the directors of all companies arecontrolled b& him and his sons 6refer to igure 3 and ;able 49. A. K. Khan roup seems to be

still a big famil& firm. 2t is also )er& interesting to point out that at present -orshed Khan is a

relati)e of A. K. Khan.

1. A. K. Khan usiness r"up

Abul Kasem Khan was born to a respectable famil& in "hittagong. His ather was a

distinguished go)ernment officer. He recei)ed his education first at o)ernment "ollege,"hittagong and then %residenc& "ollege, "alcutta from which he graduated with honors in

nglish in 18. He then +oined the (ni)ersit& #aw "ollege and stood second in order of merit

in the final B.#. ?amination in 100. He then +oined the "alcutta High "ourt as a ad)ocate in103. He married a daughter of the late A. Bari "howdhur&, a great business magnet of :angoon.

hen the *econd orld ar bro'e out, he resigned from the +udicial ser)ice and started doing

 business at "hittagong with his fatherinlaw. He started his business life as a "onstruction"ontractor and *uccess immediatel& began to come to him. After the British e)acuation from

2ndia, he felt the need of industrial de)elopment to create as economic infrastructure andemplo&ment. He as pioneer industries of his own with a )iew to pro)iding emplo&ment and

helping the de)elopment of ast %a'istan. At present the A.K. Khan group is

;he "hittagong ;e?tile -ills #td. 61539

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A. K. Khan %l&wood "o. #imited 6159A. K. Khan -atch "o. #imited 6159

A. K. $oc'ing F ng. "o. #td. 6159

A.K. Khan F "o.#td Khanlin "orporation #imited 614896Holding "ompan& A. K. Khan Jute -ills #imited 61459

"um managingagent. Bangatari shipping "o. #td. 61!9established in 1519 *.;.-. #imited 619

Bengal isheries #imited 619A. K. "old, ish *torage, fish processing pro+ect 61759A. K. Knitware 61759

A. K. arments 61759

N"te:

1. "hittagong ;e?tile mills limited was nationalized b& the go)t. Bangladesh in the &ear 18 and return to t he group in 170.

8. A. K. Khan Jute mills limited was also nationalized in 18 and returned in 170.

0. Khanlin "orporation limited is +oint )enture "ompan& with lin (nion of Austria.

3. Bengal isheries limited is the #argest +oin )enture compan& in the pri)ate sector in deepsea fishing with renowned Japanese companies )izD -itsui F "o. and ;ai&o isheries "o.

#imited.

Tentati+e C"n@lusi"n

;hrough the comparison of business groups in 2ndia and Bangladesh, we can roughl& indicate

the following two obser)ations as 'e& points.

irst, in either case, famil& members pla& )er& important roles in the ownership and top

management of the group companies. urthermore, in the case of ;ata business group, the parsicommunit& pla&s an especiall& important role in the decisionma'ing of the top management.

*econd, in order to point out the distinctions between the 2ndian business group 6;ata9 and theBangladesh ones 6A.K. Khan and 2slam9, we must pa& more attention to their scale and histories.

2n Bangladesh, both the A. K. Khan group and the 2slam group are e)en now in the era of their

founders. ;he& are still literall& famil& firms, based upon a smaller scale and shorter businessorganization histor& than ;ata. 2t appears that, for them, the problems of modernization in

management will be from this time forth.

ither wa&, it is considered that more in)estigations of these points are necessar&.

6e4eren@es 

1. *obhan,:.617!9DBangladesh Bourgeoisie,;he Journal of social studies, No , Jul&.

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8. arou',A.61709D#essons from a Biographical *ur)e& of Bangladesh ntreprent. ;he

$ha'a (ni)ersit& *tudies, %art", Gol.3 No.8 $ecember 170.

0. According to pamphlets of A. K. Khan roup, biodata of A. K. Khan and inter)iew A.

K. Khan and director if A. K. Khan roup F "o. #td.

3. According to inter)iews with A.arou' and *enior ?ecuti)e of 2slam roup.

According to inter)iews with *enior ?ecuti)e of 2slam roup