The Jashanmal Group emerged from the 2009 economic crisis in better shape than many of its rival GCC retailers. The company has focused on store management rather than roll out endless new outlets.
Management analysts see the group as a text-book example of well-ordered succession planning. In 1973, when the eldest Jashanmal son died, the family decided to turn the venture into a shareholding company.
Since then, the company has evolved into a Dubai-headquartered private corporation. The descendents of the Jashanmal family receive dividend payments, but only receive a salary if they work for the group. Young family members may join the business, but start at entry level and advance only on merit. Many prefer instead to use their dividend income to launch ventures of their own.
Few Gulf family conglomerates agree succession without conflict. However, Jashanmal Group has tackled issues of succession and change management with minimal fallout.
The four key executive board posts are barred to family members, who form a parallel board. However, the family retains a seat on the executive board.
Jashanmal Group is a slowly evolving company, averse to speculative or risk investments. It prefers to cement strategic partnerships in familiar market segments rather than blaze a trail into untapped markets or untested niches.
The strategy has worked well for the family for more than 90 years.