One Family Textiles: Stepping Back to Move Forward?

This case explores how a family business builds a board that includes independent directors that helps to professionalize and strengthen governance in the company. The case relates to One Family Textiles, an Abu Dhabi-headquartered manufacturer of garments. The company was founded in 1975 by Adnan Kalam and his elder brother Ali Kalam; two Kenyan nationals with Indian roots. The company enjoyed impressive growth, and by the early 1980s had several factories in the South-Asian sub-continent and sold to businesses in Asia, the Middle East, North America, and Europe. By the mid-1990s, members of the second generation joined the family business and pushed Adnan to further professionalize the company and strengthen its governance practices. Accordingly, the family sought the help of consultants and hired experienced senior executives, two of whom (first in 2014, and then in 2018) were appointed as the first independent directors of the advisory board. Over the next two years, the board focused on helping revamp operations and instilling sound governance measures. By January 2020, Adnan had stepped back from day-to-day operations and bought out his brother’s stake in the company, making him the sole owner of the business. His eldest son was the group CEO and felt it was time for an IPO. The board was divided on this decision; significant improvements in professionalization and governance had been made, but the independent directors foresaw more work to be done. What should Adnan do?