DEL Engineering Domestic (Private) Limited (DEDL), incorporated on July 11, 2013, is a key holding company of the Descon Group, a leading Pakistani multinational headquartered in Lahore. Established in 1977, the Descon Group has evolved into a diversified engineering and industrial services conglomerate with expertise across Engineering, Procurement and Construction (EPC), construction, maintenance and industrial services, infrastructure development, manufacturing, and automation and control. The Group operates across multiple sectors, including Oil & Gas, Power, Hydro Power, Fertilizer, Chemicals, Cement, and Industrial Services, with a strong international footprint spanning the GCC region, Iraq, Pakistan, and South Africa. DEDL’s primary role is to manage the Group’s foreign portfolio and oversee investments in its subsidiaries, while also providing consultancy and support services across various industrial segments.

DEDL's organizational structure revolves around the management of its diverse portfolio of subsidiaries and associates. As of FY25, the Company holds a long-term investment portfolio of approximately ~PKR 46bln, which consists of equity stakes in subsidiaries and associates across industries like engineering, construction, and power generation. The holding company structure ensures centralized oversight of these investments, providing strategic direction and ensuring operational efficiency across all subsidiaries. The Company’s business model revolves around acquiring technological knowledge and providing comprehensive services such as plant design, construction, commissioning, and ongoing operations.

DEDL’s ownership remains predominantly concentrated within the Dawood family, which controls approximately 94.27% of the company. The principal shareholder, Abdul Razak Dawood, maintains significant control with other family members, including Taimur Dawood, Faisal Dawood, Bilquis Dawood, and Mehreen Dawood, holding the remainder of the shares. This family-driven ownership structure ensures strategic stability and centralized decision-making, aligning with the long-term vision of the company and the Descon Group as a whole.

The stability of ownership within DEDL is assured due to the high level of control maintained by the Dawood family, who have been actively involved in the management of the company and the Descon Group for several decades. With the ownership structure firmly in the hands of the family, the company benefits from a stable governance model that ensures the continuity of the strategic direction and operational priorities across generations. This stable ownership also strengthens DEDL’s ability to weather market fluctuations and sustain long-term growth.

The Descon Group, under the leadership of Abdul Razak Dawood, has demonstrated remarkable business acumen by expanding its operations across the engineering, chemical, and infrastructure sectors. Over the years, the group has made timely investments in key growth markets, particularly in the GCC region, which has allowed it to diversify its revenue streams and reduce reliance on any single market. The group’s leadership is known for its deep industry knowledge, ability to adapt to technological advancements, and expertise in risk assessment, which has greatly contributed to its ongoing success in competitive markets.

The Descon Group’s financial strength is evidenced by its solid asset base and equity position. As of FY25, the group reported ~46bln long term investments. This strong financial position provides the group, and by extension DEDL, with the flexibility to pursue strategic investments, expand its operational footprint, and support subsidiaries in times of financial need. The financial soundness ensures that the company is well-equipped to navigate challenges in the global business environment.

DEDL’s governance structure is anchored by a three-member board from the Dawood family, including Taimur Dawood as Chairman and Faisal Dawood as Vice Chairman. The family members’ involvement in strategic decision-making ensures that the Company stays aligned with the Descon Group's long-term goals, while independent directors offer fresh perspectives and contribute to effective governance.

The board is chaired by Taimur Dawood, who has over 30 years of diversified experience in engineering, project finance, and strategic management. His leadership has been pivotal in expanding the Descon Group’s operations globally. The other directors possess extensive experience in engineering, finance, and business management, ensuring that DEDL’s strategic decisions are well-informed and grounded in industry expertise. The board’s collective experience strengthens the Company’s governance practices and ensures sound decision-making at the highest level.

The effectiveness of DEDL’s board is supported by the establishment of four key committees: Audit, Human Resource and Remuneration, Corporate Risk Management, and Whistle Blowing. These committees provide structured oversight of the company’s operations and ensure that corporate governance standards are adhered to. The board holds regular meetings, with key performance indicators and strategic reports shared in advance, allowing for well-informed decision-making. This commitment to transparency and accountability enhances the board’s ability to govern the company effectively.

Financial transparency is a cornerstone of DEDL’s governance practices. Crowe Hussain Chaudhury & Co., the Company’s external auditors, have consistently issued unqualified opinions on DEDL’s financial statements. This reflects the company's commitment to maintaining high standards of financial reporting, ensuring that stakeholders have access to accurate and reliable financial information.

DEDL operates with a well-structured management framework that enables efficient oversight of its subsidiaries and affiliates. Key functional departments such as Finance, Strategy, Legal, and HR are centralized, while subsidiary operations retain a level of autonomy to ensure flexibility and responsiveness in their respective markets. The organizational structure is designed to facilitate collaboration and streamline decision-making across various business units, ensuring alignment with the Company’s overall strategic goals.

The management team is led by CEO Taimur Dawood, who has over 30 years of experience in engineering, finance, and business strategy. He is supported by a team of experienced professionals, including Abdul Sohail (Company Secretary) and Junaid Asghar (CFO), each of whom brings a wealth of knowledge and expertise in their respective domains. This management team has been instrumental in driving DEDL’s growth and ensuring the successful execution of projects across diverse markets.

DEDL’s management team has proven to be highly effective, with a track record of successfully executing numerous large-scale projects for blue-chip clients in various international markets. The Company’s ability to provide turnkey solutions, like an Engineering, Procurement, Construction, and Commissioning (EPCC) service provider, highlights the team’s operational competence. Their effective management of both technical and financial aspects of projects ensures that DEDL remains competitive and capable of meeting the evolving needs of its clients.

The Control Environment at DEL Engineering Domestic (Private) Limited (DEDL) plays a critical role in ensuring the Company operates within established legal, regulatory, and internal compliance frameworks. The control environment refers to the policies, procedures, and organizational structure in place to ensure efficient operations, reliable financial reporting, and adherence to regulations.

DEDL employs a two-pronged approach to investment decision-making, with the Strategy team focused on long-term growth opportunities and the Treasury team managing short-term investments. The Strategy team evaluates new ventures and oversees capital allocation, ensuring that investments align with the company’s long-term goals. The Treasury team manages liquid assets, focusing on low-risk, stable investments such as TDRs and optimizer funds.

DEDL’s investment policy is conservative, prioritizing stability and low-risk investments. The company’s long-term investment portfolio is concentrated in subsidiaries within the engineering sector, with significant exposure to markets in the GCC, particularly Saudi Arabia, UAE, and Qatar. Short-term investments provide liquidity and flexibility, enabling the company to manage cash flow efficiently.

The investment team works closely with the Board to assess the performance of existing investments and identify new opportunities. The quarterly reviews conducted by the team ensure that investment decisions remain aligned with the company’s strategic objectives. The Board’s active involvement in investment discussions enhances the overall effectiveness of DEDL’s investment strategy.

DEDL’s investment strategy is characterized by geographical diversification, with operations spread across several key markets in the Middle East and South Asia. This diversification reduces the company’s exposure to any single market and mitigates region-specific risks. By maintaining a global portfolio, DEDL can take advantage of growth opportunities in emerging markets while minimizing the impact of local economic downturns.

The company’s portfolio includes both core investments in subsidiaries and non-strategic short-term investments. This balance allows DEDL to maintain liquidity while also supporting long-term growth through its subsidiary operations. The investment in high-growth sectors like engineering and construction provides stability and supports sustained profitability.

DEDL’s income profile in FY25 remained primarily investment-driven, supported by dividend income and returns on short-term investments. During FY25, the Company reported total investment income of PKR ~709 mln, reflecting a recovery from the loss position recorded in the previous year. Dividend income of PKR 109 million and profit on term deposit receipts contributed to earnings, while operating expenses remained contained. Income visibility at the holding-company level continues to depend on dividend remittances from subsidiaries, which remain opportunistic rather than structurally predictable

DEDL’s financial risk profile is characterized by its zero debt and minimal reliance on external financing. The Company’s lack of financial liabilities reduces its exposure to interest rate risk and ensures that it is not burdened by debt repayments. The absence of debt provides the Company with significant financial flexibility and allows it to focus on long-term value creation without the constraints of leverage.

DEDL operates with a robust equity base and zero debt, ensuring financial stability and flexibility. The company’s minimal leverage allows it to retain full control over its financial resources and ensures that it is not exposed to the risks associated with high levels of borrowing. This conservative approach to capital structure supports the company’s long-term growth objectives and reduces financial risk.It is noted that certain portfolio companies operate with leverage at the operating level to support project execution and growth requirements. While this leverage is ring-fenced within subsidiaries and does not translate into direct financial obligations for the holding company, it introduces an indirect exposure to operating and sectoral cycles, which continues to be monitored from a group-risk perspective.

While DEDL itself does not engage in operational activities, its subsidiaries generate substantial revenue, contributing significantly to the company’s consolidated financial position. For FY25, consolidated revenue stood at ~PKR 139 bln, a 56% increase from the previous year, with net profit rising by ~23%.Based on entity-level data shared by management, key subsidiaries continue to generate substantial revenues and profits during FY25, supporting the overall economic strength of the group.