In the often volatile landscape of South Asian business, Summit Group stands out not only for its impressive infrastructure projects but also for its distinctive governance model that successfully balances family leadership with professional management. This approach, championed by founder Muhammed Aziz Khan, has created a corporate structure that appeals to international investors while maintaining the entrepreneurial spirit that drove the company’s initial success.
How Aziz Khan Built A Professional Framework Within Family Enterprise
When Muhammed Aziz Khan founded Summit Group in 1985, Bangladesh was in the early stages of development with few established entrepreneurs. “Bangladesh was newly born and there were no entrepreneurs. So I found a niche,” Khan explains, describing the company’s origins. What began as a trading enterprise evolved into the country’s largest infrastructure conglomerate.
Unlike many family businesses in emerging markets that resist outside involvement, Khan has deliberately structured Summit to incorporate professional management and independent oversight. This approach reached a significant milestone in 2016 when Summit Power International (SPI) was established in Singapore, bringing the company’s power-related operations under a governance structure that meets international standards.
“The business is not run as a family-run sole proprietorship. The business is run as a very well-governed, well-structured, well-reported business,” emphasizes Ayesha Khan, Managing Director and CEO of SPI. This distinction is crucial for understanding how Summit has evolved beyond the limitations that often constrain family-owned enterprises in developing markets.
Summit Group Management Structure Combines Family Values with Professional Expertise
Summit’s board composition reflects its balanced approach to governance. Despite being primarily family-owned, the company maintains a professional board structure with independent directors providing external oversight and expertise. “Our board rules such that there’s always two independent directors, two directors from Jera and six directors from the family,” explains Ayesha Khan, detailing the carefully constructed balance of interests.
This governance model extends beyond the boardroom into the company’s day-to-day operations. “The senior management, apart from a few of us who come from the family, are all professionals with experience, with understanding, with wisdom,” Ayesha Khan notes, highlighting how family leadership is complemented by professional expertise throughout the organization.
The company’s approach to governance includes formal structures such as an audit committee and a strategy and investment committee. These mechanisms ensure that decisions are made with proper oversight and strategic consideration, rather than being driven solely by family interests.
Wu Yan Bin, SPI’s Chief Financial Officer, points out that the company’s transactions undergo rigorous scrutiny from international partners and financiers. “If you look at the construction process, to be able to even pay an invoice to a contractor, this has to be certified by the lenders technical advisor that indeed those milestones have been met before lenders are even willing to disperse funds to pay those contractors,” he explains.
Aziz Khan Vision Creates Long Term Stability Through International Standards
One of the most distinctive aspects of Summit’s approach has been its decision to incorporate in Singapore, providing access to mature financial markets and robust governance frameworks. This structure has allowed the company to attract significant foreign direct investment, including a 22% stake acquisition by Japan’s Jera Co. in 2019 for $330 million.
The Singapore incorporation represents a strategic vision focused on long-term stability rather than short-term gains. “We are not the typical private equity or financial investor who will just be looking to bank on,” says Wu Yan Bin, emphasizing Summit’s commitment to sustainable, long-term growth rather than quick profits.
This approach has positioned Summit as a bridge between Bangladesh’s growth opportunities and international capital markets. “We have the best of both worlds—the growth opportunities of Bangladesh, the close understanding of a Bangladeshi market by being company that is originally from Bangladesh, but also being an international company having access to a matured financial market,” Ayesha Khan explains.
Summit Group Combines Entrepreneurial Spirit with Corporate Discipline
Throughout its evolution, Summit has maintained the entrepreneurial spirit that characterized its founding while adding layers of corporate discipline. This balance allows the company to remain agile in responding to opportunities while maintaining the rigor necessary to manage large infrastructure projects and satisfy international investors.
The company’s approach to expansion reflects this balance. Rather than pursuing aggressive growth at any cost, Summit carefully evaluates potential investments with a long-term perspective. “We look at it on a holistic and long term basis because we do not want it to be really just a one off acquisition,” explains Wu Yan Bin, describing the company’s thoughtful approach to growth.
This methodology has proven particularly valuable in navigating the complex political and economic landscapes of South Asia. By maintaining high standards of governance and transparency, Summit has positioned itself as a stable partner regardless of political changes in its operating environments.
The company’s focus on trust and goodwill demonstrates how family values continue to influence its corporate culture despite its increasingly sophisticated governance structures. “Trust is a major tool, a major connector for businesses all over the world. Infrastructure, long-term businesses, it is especially important,” notes Ayesha Khan, highlighting how relational values remain central to Summit’s identity.
For other family-owned businesses in emerging markets looking to attract international investment while preserving their foundational values, Summit Group offers a compelling model of how professional governance can complement rather than compromise family leadership. By embracing international standards while maintaining the vision and values established by its founder, Summit has created a sustainable framework for long-term growth that benefits both the company and the communities it serves.
