The second textile unit to join the Group was established for the manufacturing of spinning yarn in 1962 at Hyderabad, Sindh, by another entrepreneur in the name of Al-Murtaza Textile Mills Limited. Dewan Group acquired the company in April 1975, when the entire workforce of Al-Murtaza was on strike and the losses had accumulated to Rs 9.29 million in the project with total Owner's equity of Rs 9.8 million. The Group was able to achieve a turn around in less than a year and in the very next year of acquisition it earned a gross profit of Rs 14.2 million with exemplary labour management relations. These results were achieved in spite of the fact that after about nine months of operations under the flag of Dewan Group, the blow room caught fire, putting one of the two blow room lines out of commission.

The project size that stood at only Rs 42.5 million at the time of its acquisition in 1975 has now grown to Rs 147 million. Similarly, the sales have gone up from Rs 28.8 million in 1975 to Rs 255 million in 1997. Also in 1975, when the unit was acquired, an average of only 15,042 spindles were operational, whereas now all of the 27,400 installed spindles are running efficiently, thereby productively contributing to the growth of the project. The production figures which stood at 1.85 million kg. in 1975 has grown now to more than 8.0 million kg.

The raw material used is lint cotton both of local origin and of imported origin, Viscose Fibre, Acrylic Staple Fibre and Polyester Staple Fibre. The polyester staple fibre and acrylic staple fibre being used in yarn spinning is produced by the sister concern Dewan Salman Fibre Ltd.

The production technology being used is modern and competitive with other units working in the textile sector of the country. Efficiency consciousness is the hallmark of the company's corporate culture with in-built efficiency appraisals in the operational system.

There is complete weather control inside the plant and the worker's health is protected by using the most modern environment methods. The Quality Assurance System of the unit is known throughout the Textile Industry for its stringent controls.

A well-planned strategy for balancing, modernization and replacement (BMR) is under implementation in the company. In the year 2000, the sales of Dewan Mushtaq Textile Mills Ltd., were over Rs.76 million.