Mentor To Two Generations Of Galadaris
Indian professionals have established their credentials throughout the Arabian Gulf, their talents and skills instrumental in the success of many major business organizations in the region. S.M. Syed Khalil is one such individual with an illustrious career behind the scenes of one of the Gulf’s most prominent business families.
by: Frank Raj
How would you describe an individual who is a philanthropist, a well qualified professional in his field, highly successful and respected among his peers, and yet clichéd portrayals of achievement do not interest him? Rumi, the great Middle Eastern poet makes a piercing observation connecting selfhood and service to mankind: “If you are here unfaithfully with us, you’re causing terrible damage.” The point being if we are unfaithful even to ourselves, we will extract a price from others by making promises we cannot keep.
At the age of 70, S.M. Syed Khalil Group Executive Director, Ilyas & Mustafa Galadari Group is someone who has kept his promises. Still, if you want to appraise him, of all the accolades you might come up with, the one he would probably accept is “God fearing.” Most folks would find that quaint, and you couldn’t say that of too many individuals in today’s marketplace where it is human potential that is literally worshipped. In our supposedly self-made generation few will admit they turn to the Creator every moment of the day as an anchor to weather the great storms of life. That’s why meeting people like Syed Khalil makes you reconsider the definition of success - should we seek happiness merely through the acquisition of wealth or is there something more? Whatever it is, Khalil has found time honored principles to live by that radically differ from the value systems most people adopt.
Young men usually start to dream in school or college, when it’s time to decide on what to achieve in life. Khalil started with a bit of a jolt when he nearly botched his freshman year at college. “I gained admission to the noted Madras Christian College, but personal circumstances led to my joining the lesser known New College in Chennai for my Pre-University degree. I expected to finish my PUC with distinction but I was shocked when I ended up with a mere ‘pass’ class because I failed in Hindi. In all the other subjects I scored over 95 percent, so the University gave me a passing grade, they didn’t allow me to fail.” Be that as it may, Khalil in any case was not the type to be overwhelmed by the minor failures of life, he had his heart set on moving ahead.
Subsequently he did join Loyola College one of the most prestigious colleges in Chennai where he bagged a 1st class in his Bachelor of Commerce degree. Observing his deep interest in law his professor advised him to study for the legal profession while relatives wanted him in the Indian Administrative Service (IAS). It was the typical dilemma of many a college graduate wondering what future course to take. “I also tried to get into engineering but I didn’t get an opportunity," remembers Khalil,  finally on his Uncle’s recommendation he  switched to Chartered Accountancy, starting his articleship with a firm in Chennai. “The articleship was a four year course but after I had finished my Intermediate studies the previous year, a new rule reduced the articleship to only three years. I took up the challenge and cleared both my exams within two and a half years, completing my articleship in three years. It was a very big exam in those days, and there were only two people who passed the three year articleship,” he recalls with obvious satisfaction.
It was December 1965 when the newly qualified Chartered Accountant proceeded to Mumbai, the opportunity capital of India. Picking up a telephone directory the enterprising Khalil zeroed in on prominent firms like Fergusons, Coopers, Billimoria etc. Fergusons was the first to interview and select him, launching his career the same day. “It was my first job and all my subsequent jobs were by invitation, I never applied again for any job,” says a confident Khalil.  After three years with Fergusons he was invited by India’s well known Mahindra Group to be the finance manager of Mahindra Ugine. “I worked there for ten years under the able leadership of Harish Mahindra who was my chairman. They were like family to me, I never felt like I was an employee,” reminisces Khalil.
So how did he end up in the Middle East? “I visited Dubai in 1974 for just a short visit because like most Indians at the time I too had a craze for foreign goods. I came on a shopping trip with my wife Tahira and we toured UAE, Qatar, Kuwait, Bahrain and Saudi Arabia. While I was here in 1974 I got good job offers but I felt Dubai was not the place for me so I went back to my job in Mumbai.” Dubai however was now was plugged into his network and more offers started coming.
In 1977 he was invited by major UAE business houses like the Al Ghurair and the Galadari Brothers to join them. “I saw this as another opportunity to buy more foreign goods so I came to Dubai not really inclined to take up a job! When I went to meet the Galadaris they were about to launch the Khaleej Times newspaper with Mahmoud Haroon the owner of Dawn in Pakistan and a cabinet minister. Haroon urged me to join them, telling me to write my own appointment letter and sign up. ‘Put whatever salary you want,’ he said, so I figured out my own salary, I really didn’t know how much to ask for, and I could have asked for more but I just put down what I considered was a worthwhile salary,“ reveals a bemused Khalil.
When he returned to India the Mahindra’s admitted they could not match Khalil’s Dubai offer since salaries in India back then were only about Rs. 5,000 maximum as per the law. “One AED in those days was worth about two rupees and although I can’t disclose my starting salary with the Galadaris, it was a very good income and included housing etc. Job satisfaction also was high because I was running the Khaleej Times as General Manager. Subsequently some problems arose with the late Mahmoud Haroon and I decided to leave, but the Galadaris wouldn’t let me go. They shifted me to their head office and made me the GM Audit & Systems in 1979. I kept that position till 1983 when the Galadaris encountered severe business problems in 1984 - 85. “At that crucial time Khalil was promoted as Finance Director to manage Abdul Latif Galadari’s half a billion dollar project in Singapore, which he took over from his brother Abdul Wahab. It was a time of much upheaval that required all of Khalil’s financial management skills to put the company back on track. “I returned to Dubai after setting things right, but after this the Galadari Brothers went through a major financial crisis when their bank was taken over and we lost the Singapore project.” Khalil restructured the entire group and continued to be incharge till 1987 when he took over as the Group Chief Executive.
The successful restructuring of one of the leading conglomerates in the Gulf was a task that Khalil handled deftly and the turnaround undoubtedly enhanced his reputation among the movers and shakers of Gulf business. Galadari Brothers had more than 260 people in their corporate office and Khalil reduced it to about 70 people. He was with them from 1978 to 1995 and later continued as Abdul Latif Galadari’s representative for another decade or so till 2002. Summarizing those turbulent times when the company fought for its survival he reveals, “The Galadari  empire of Abdul Rahim and Abdul Latif consisted of about 50 companies which I reduced to about 15 companies that are still very healthy. They include well known firms like Khaleej Times, Mazda Motors, Intercontinental Hotel, Bandag, Galadari Engineering, etc. The companies are now owned by the Abdul Rahim and Abdul Latif Galadari family and the Dubai government.”

TII met Syed Khalil at the offices of City of Arabia, the spectacular multi-billion dollar retail, residential, commercial and entertainment urban community in new Dubai being developed by the Ilyas & Mustafa Galadari Group where Khalil is  Group Executive Director. The skilled business veteran has been a mentor to the Galadari family for nearly three decades.

SYED KHALIL INTERVIEW

TII: Yours is basically the story of a small town boy from Bhatkal, Karnataka who had big dreams. 

SK: I always say, ‘Inspiration, Aspiration and a Road Map’, which is only a milestone –there’s no end to aspirations.

TII: So the Galadari story didn’t end – you are now involved with the next generation. How did that happen?

SK: I was running the Galadari business till 1995 when the senior partner Abdul Rahim Galadari died. Because of some differences with his son I resigned after a year but Abdul Latif Galadari wanted me as his advisor and he gave me the power of attorney to run the company on his behalf. I essentially became his partner - legally I had the same powers and I ran the company till 2004, when Abdul Latif died. 

TII: What happened after that?

SK: Ilyas and Mustafa the highly enterprising sons of Abdul Wahab Galadari would often come to my office and I would advise them on running their business, the Metro Taxi company. They started from scratch with no money from their father and I helped them to establish Metro, get financing etc. They would often tell me, “You should join us!” and I would respond, “I’m too expensive for you and I don’t think you can utilize me properly, your business is too small.” However they didn’t give up and early one morning they came to see me. Carrying a huge presentation board they declared, “Now you can’t refuse, we have a dream project and you will love it!” They showed me the model of an amazing city they had brilliantly conceived – a garden city they wanted to build. The master plan, included a university, a shopping mall, offices, residences etc. – a complete all-inclusive blueprint for a fascinating city. I immediately saw the potential and especially the scope for promoting education through such an investment and I said, “Yes this is a great project and I will join you.”

TII: As easy as that? Did they have the resources to pull it off? 

SK: It was just a dream at this stage, they didn’t have the land we required - about 11 million sq ft. We developed a superb master plan complete with animation, walk-through etc. and presented it to the authorities who were delighted with it and said, ”Done!” But then we waited, and waited for six months, and I began to think I’ve wasted my time. Finally the authorities came back to us and said we will give you something even better and they announced Dubailand where they gave us a big portion of the allocated space. Ilyas and Mustafa refined their concept, fine tuned it even more than what they had thought of earlier, and that’s how the idea for City of Arabia was born.

TII: You obviously believed in Ilyas and Mustafa and their ability to deliver. 

SK: I joined them in 2004 when all they had was Metro Taxi, Workshop and Cold Store. Later on  Galadari Motor Driving Centre (GMDC), Kitchens & Beyond, Sunseeker, Boat Factory and numerous other businesses were started. In investment terms, City of Arabia is a multi- billion dollar project, we launched it after we bought land from the government.

TII: When you left India did you see yourself running an organization like the Galadaris?

SK: I was not overawed at being incharge of the Galadari empire because the Mahindra Group is one of India’s largest companies. Mahindra Ugene was the first alloy steel plant in India, and even as Finance Manager I was looking after the entire operation with the full authority of the Mahindras. I would have risen to be Group Director of the entire Mahindra Group had I stayed in India. Here in the Gulf the advantage was money with no taxes and in those days India couldn’t match Gulf salaries.
TII: Lots of people joined and left the Galadaris how come you stayed?

SK: Many people have asked me that question. Once I’ve committed to something I can’t quit even if I want to; whenever I want to leave a job I can’t –this is my weakness. Even at City of Arabia I want to retire now because I’ve reached a stage of superannuation but Ilyas and Mustafa don’t want me to leave. They are very fine and committed business persons and when you work for them it is a life journey. Galadaris do not treat you as an employee but treat you as a part of their family.

TII: Nonetheless, don’t your qualifications, experience and people skills also matter?

SK: Commitment is the main thing. To lead and succeed in any area of life you must have commitment. That’s what genuine leadership is all about –you don’t quit you persevere…with such commitment, no boss would like you to leave. My work ethic does not allow me to leave my office during duty hours for personal work. To this day I have a habit of telling my boss where I am if I have a meeting, or if I’m late in coming for any reason. Discipline and commitment create loyalty, but loyalty cannot be one sided, it has to be on both sides, the company too must show it cares about you.

TII: Does that explain why you still have      ties to the Mahindra Group in India? 

SK: I worked with Mahindra’s for 10 years, I would never have left them if it was possible. When Anand Mahindra came to Dubai to sign a deal for ‘Jeep’ he told Abdul Rahim Galadari,  “I want Khalil back, I’ll take him back with your permission.” Mahindra’s is still like a family for me.

TII: Tell us about the turnaround you achieved for the Galadari Brothers. 

SK: In 1984 the Galadari Group was almost insolvent when I turned it around –they had more bank borrowings than total assets. I restructured the entire group converting it into a viable operation. We earned a reputation as the only group which never defaulted on bank loan payments after the restructuring. Galadari Brothers became a no-debt company within eight years having only equity, no borrowings. Today it is one of the soundest companies in UAE. A company that has no borrowings will always be sound, and very few can claim such stability. Even at Ilyas and Mustafa Galadari we have no borrowings - that’s why we are sound even at a time like this.

TII: Philanthrophy is your passion – did it start after you achieved financial success?

SK: Not really, from my school days I have been involved in social work and I even started an interest-free bank when I was in Mumbai. I have three main areas where I focus: education,  poverty alleviation  and healthcare. I don’t get involved in music or cultural events, I only concentrate on these three fields-healthcare especially is my focus. I’m a member of several charitable trusts and educational institutions in India, with hospitals etc. I have my own foundation in India which is involved in many charitable works.

TII: At what point in your life did you feel you were in a position to make a difference in society? 

SK: Homer wrote that, “Adversity has the effect of eliciting talents which in prosperous circumstances would have lain dormant.” Problems unlock your creativity, my own life taught me much because my father died before I was born and I was helped by my Uncle who educated me and friends who played a role in my education. So I always had this desire to give back because of what I received. I was born in Bhatkal, Karnataka, went to Calicut and Thiroor where I studied, and then I went to Chennai. I used to work here and there, doing odd jobs, giving tuitions to send some money home from my part-time work. It was a good struggle –those were golden days when I look back.

TII: Was it success and a bank balance that put you in a position to make an impact?

SK: Social responsibility is not a matter of your bank balance –it’s a matter of your commitment. I can’t remember how much I had, but right from the beginning when I came to Dubai, I was financially quite secure. I always gave a part of my income for charitable causes and as my income increased so did my commitment. If you have two meals it is better to share one meal with somebody and have only one meal. Real sharing is not a matter of surplus – even when you have nothing you must share.
To my charitable and educational foundation, I have taken up major work such as construction of a girl’s college, two school buildings, a foundation to take care of over 300  families, arranged scholarships for higher education and medical help for major and minor treatment. Charity is done to please the Creator not to please people. Two people in this regard –Bill Gates and Warren Buffet have influenced me. I always tell my fellow Muslims these men may not know Islam, but they are better than Muslims. There are exemplary people like this for whom money means nothing.

TII: Why have you have chosen to follow the very few people like Gates and Buffet when there are others equally famous who are different? Somebody asked Rockefeller how much money do you need and his answer was one more dollar!

SK: Such people are wrong - we know that God has fixed our time, how much money I will make is already fixed. Whether I gamble or do something else, he will give me that specific pot of gold. Beyond that I’m not going to get anything more – why should I struggle? I can be responsible and use it wisely or I can spend it all, but my allocation will not change.

TII: Do you restrict your giving only to where you came from?

SK: I give to other countries also where there is distress like Bosnia, Nepal, Pakistan etc., I don’t believe in national boundaries. In India I’m involved in various charities but a sizable portion goes to my native place in Bhatkal.
TII: Do you have a hobby you are passionate about? 

SK: I have one of the world’s largest collections of miniature perfumes –about 1500 different fragrances. Also a big collection of stamps and pens.
TII: At 70, what are your ongoing dominant thoughts?
SK: How to improve the living standards of people and how to educate them is my main concern. I love to help people who are determined to improve their lives through sheer determination, when you meet such people you realize how small you are compared to them. There are many poor people needing serious and expensive operations, if you do not help them financially it becomes life threatening. I feel for such serious cases and try to give these individuals a life of dignity and contentment.

TII: Tell us about your family, what do they think about your philanthropy?

SK: I have three daughters and one son. Farhana (40) a doctor has done her MRCP in Pediatric Cardiology and lives in London; Rafia (35) is a Fellow in Rheumatology, in Detroit, Michigan; Khadija (25) is a Computer Engineer & religious scholar, and my son Raees (39) is a CPA, both of them are in Dubai. My family is very happy with my philanthropy and they have generous hearts themselves.  
TII: Do you believe in a religion or do you believe in God?

SK: God has established a system of believing in him through an interaction with religion, which has been the same from Adam till the Prophet Mohammed.  The Creator is in-built in everyone’s mind. When people are in trouble they look up and call upon God as Allah or Ishwar or Bhagwan –it’s a universal cry for help to the real God.

CITY OF ARABIA
City of Arabia is the spectacular US$5 billion retail, residential, commercial and entertainment destination located at the gateway to Dubailand.
With business and administrative offices, schools and clinics, supported by luxury apartments, shops, galleries, restaurants and unique attractions, City of Arabia is poised to be a key destination and urban community within the new Dubai. The project will have a phased opening starting towards the end of 2010.
Its four key elements are Mall of Arabia, one of the world’s largest malls; Restless Planet, a US$300 million theme park and earth science museum; Wadi Walk, a water front community with stylish apartments, outdoor cafes and attractive retail outlets; and Elite Towers, a collection of impressive commercial and residential buildings.
A self-contained community designed to minimize the use of cars, City of Arabia will be served by its own monorail system which will transport residents and visitors to and from a designated Dubai Metro station and around the site. With a total of 8,200 residential components, City of Arabia will, on completion, have approximately 40,000 residents and a catchment area containing 1.87 million people.
In 2002 Syed  Khalil joined the venture as “Group Executive Director” of the Ilyas & Mustafa Galadari Group; a newly formed organization started by Ilyas A.W. Galadari and Mustafa A.W. Galadari, nephews of the partners of Galadari Brothers. The company has become one of the fastest growing businesses in the UAE, earning widespread respect and recognition across the region.
In addition to his role with the Ilyas and Mustafa Galadari Group, Khalil is a Director of the Jashanmal Group of Companies, Chairman of Maadhyama Communications in Mangalore, India, Chairman of Anjuman Education Society in Bhatkal, which also runs a number of institutions in India, Chairman of Sahil Online, a web-based news channel and Chairman of Global Broadcasting Corporation FZ-LLC, Dubai. He is a Director and Trustee of several other media companies and charitable foundations, both in Dubai and India, and remains a Fellow Member of the Institute of Chartered Accountants of India.
Khalil’s generosity and commitment to community work in India was recognised in 2003 when he received the prestigious Rajotsav Prashisti Award from the Government of Karnataka.