Chenab Group
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| Public | |
| Traded as | KSE: CLCPS |
| Industry | Textile Fashion Retailing |
| Founded | 1974 |
| Founder | Haji Muhammad Saleem and Mian Muhammad Latif |
| Headquarters | Faisalabad, Pakistan |
|
Area served
|
Worldwide |
|
Key people
|
Mian Muhammad Latif - Chairman, Mian Muhammad Naeem - Director Marketing and CEO Chen One, Mian Javaid Iqbal - Director Operations |
|
Number of employees
|
12,000 |
| Divisions | Chenab Limited, Chen One and CGI Limited UAE |
| Website | www.chenabgroup.com |
Chenab Group is a Pakistani conglomerate.[1] It is one of the largest exporters of home textile products from Pakistan. It was set up in 1974 as Chenab Fabrics & Processing Mills Limited and later converted to Chenab Limited. It was founded by Mian Muhammad Latif and his father Haji Muhammad Saleem who was a cotton industrialist in Toba Tek Singh District.
Contents
History
Mian Muhammad Latif, the group's chairman, laid the foundation by setting up a processing unit in Faisalabad later joined by his younger brothers Mian Muhammad Naeem and Mian Javed Iqbal. Chenab Group soon started exporting its products worldwide and by the 1990s it started exporting to 35 countries worldwide. Chenab is a vertically integrated unit with having complete operation range from ginning to retailing. The Group's textile mills division was listed on Karachi Stock Exchange in 2004. The Group's downfall began in 2007-8 when it sustained 4 billion PKR in losses.[2] As per last annual report (ending June 2014) it has negative equity of PKR 4.7 Billion and the auditors state "in our opinion, because of the significance of the matters discussed ...the balance sheet, profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof do not conform with approved accounting standards as applicable in Pakistan and do not give the information required by the Companies Ordinance 1984 in a manner so required and do not give a true and fair view of the state of the Companies affairs...".[3] The last annual report also confirms that the company in violation of the Pakistani Code of Corporate Governance has no independent directors on its board.[4] Its 2013 Annual report includes a statement from the company auditors that the company violates the Pakistan Code of Corporate Governance as none of the directors had attended a directors training course.[5]
Equipments
Chenab's textile unit used to process and converts more than 70 million meters of fabric every years into made ups and garment products. Chenab is capable of producing multiple products. Chenab has 19,200 spindles at its Spinning unit with house space of 520,000 square feet (48,000 m2). Chenab's weaving unit is equipped with 250 airjet looms and 380 auto looms. Chenab's processing unit is the largest in the country with a complete processing range from dying to finishing. Chenab is also equipped with a stitching unit for ready mades and garments. However current utilization of the units is now at 25% of their capacity.[6]
Associated companies
Chenab Group introduced concept of ChenOne Stores in Pakistan and Middle East. ChenOne is Pakistan's first home textile brand having total 29 branches in Pakistan and abroad. Chenab Group also owns or manages several other companies such as CGI Limited UAE, InterFab in Australia, Chenab Fibres Ltd, ChenSoft, Chenab USA, ChenOne Worldwide, House of Chenab and ChenOne Foundation. Some of these associate companies along with the owners have been implicated by the Pakistani Securities and Exchange Commission in insider trading/market manipulation of Chenab Shares.[7] Criminal prosecution of Chenab owners and companies is ongoing due to their alleged role in the matter[8]
Management team
Mian Latif's family commonly referred as Chenab Family owns more than 90% stock of Chenab Limited and has control over the management. However there are cases pending which would dilute the family holding to a minority as per note 4.3 of the annual report 2014.[9] The group's chairman Mian Muhammad Latif was awarded with Tamgha-e-Imtiaz by the former President of Pakistan Pervez Musharraf. Mian Muhammad Naeem and Mian Javaid Iqbal the group's core directors also won businessman of the year award on several occasions from several Head of State of Pakistan. Mian Latif's brother Chaudhry Muhammad Ashfaq (Director Procurement) was also awarded by WWF for producing most organic cotton bales in the world in 2009, Chaudhry Ashfaq is an ex-MNA, former District Nazim of Toba Tek Singh and was Senior Vice President of PML-Q. He is currently affiliated with PTI and serves as Vice President Punjab. The family has enjoyed close relationships with Benazir Bhutto, Shaukat Aziz and Yousaf Raza Gillani. Mian Latif's son Mian Farhan Latif is an ex-MNA(youngest member of 2002-2008 National Assembly) and now looks after processing unit of the business. Chaudhary Muhammad Ashfaq's son Mian kashif Ashfaq is CEO of ChenOne. Mian Latif and his family were considered 14 richest family of Pakistan with net worth of more than $700 million according to a report issued by CBR in 2009 before the downfall of Chenab Group. Now Mian Muhammed Latif, Mian Javed Iqbal and Mian Farhan Latif are all under criminal prosecution[10] and currently out on bail[11]
References
- ↑ http://www.chenabgroup.com/Finance/pdf_files/FSYEJun302013.pdf
- ↑ http://tribune.com.pk/story/762213/business-stories-the-rise-and-fall-of-the-chenab-group/
- ↑ http://www.chenabgroup.com/Finance/pdf_files/FSYEJun302014.pdf
- ↑ http://www.chenabgroup.com/Finance/pdf_files/FSYEJun302014.pdf
- ↑ http://www.chenabgroup.com/Finance/pdf_files/FSYEJun302013.pdf
- ↑ http://tribune.com.pk/story/762213/business-stories-the-rise-and-fall-of-the-chenab-group/
- ↑ http://www.secp.gov.pk/Reports/2013/3_Investigation-Report_ChenabLtd.pdf
- ↑ http://www.secp.gov.pk/Reports/2013/3_Criminal-Complaint_ChenabLtd.pdf
- ↑ http://www.chenabgroup.com/Finance/pdf_files/FSYEJun302014.pdf
- ↑ http://www.secp.gov.pk/Reports/2013/3_Criminal-Complaint_ChenabLtd.pdf
- ↑ http://www.secp.gov.pk/Reports/2013/3_Court-Order_ChenabLtd.pdf
