IIPM Press Release :- It’s all about value

15. Dec 2006 23:42, sonu42

IIPM PUBLICATION

Even after the split, Reliance continues to shine
Dhirubhai Anil Ambani

Ambani built Reliance Industries from scratch when he founded the Reliance Commercial Corporation with a capital of mere Rs.15,000 and an office of not more that 350 square feet. Dhirubhai structured the company with a number of holding companies and subdivisions. Although his philosophies and strategies to run the company were rock solid, Dhirubhai Ambani left a cloudy succession plan for his two sons, Mukesh & Anil.

Mukesh being the eldest, took his father’s chair after Dhirubhai’s death for a while. Anil became the Vice Chairman & MD of Reliance Industries. But it was only matter of time before both siblings realised that they would eventually have to look after their own individual interests. The first signs of an Dhirubhai Ambani

ugly rift between the duo became visible when Anil refused to sign on the balance sheets. And eventually, Reliance Industries was split between the brothers after a truce brokered by their mother Kokilaben. Despite the split, the stocks of both companies regained their positions on the bourses.

While Mukesh got control of the flagship Reliance Industries, younger brother Anil took over Reliance Energy, Reliance Capital & Reliance Infocomm. Though these companies are not in one boat anymore, the legacy of Dhirubhai Ambani stays on. The brothers are on a massive drive to expand, just like their father, who had once famously stated, “Think big, think fast, think ahead. Ideas are no one’s monopoly.”

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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