Reliance Industries was founded by Dhirubhai Ambani in 1966 and it started with a polyester firm. It’s earlier name was Reliance Commercial Corporation and on 8th May 1973 its name has been changed from Reliance Commercial Corporation to Reliance Industries.
Since then Reliance Industries entered their business in various sectors such as financial services, petroleum refining, power, telecom, Infrastructural etc. Within a span of 3 decades Reliance Industries grown in a rapid manner and it has become a 15 Billion Dollars industry consisting of Reliance Capital, Reliance Infrastructure, Reliance Power, and Reliance Petrochemicals and Reliance Telecom etc.
Just after the death of Dhirubhai Ambani, widespread business rivalry broken out between the Anil Ambani and Mukesh Ambani for the inheritance and control over India’s largest business group of Industry.
Their never ending business feud has finally caused splitting of Reliance Industries in 2005 and the Reliance Industries became two separate company such as Reliance Anil Dhirubhai Ambani Group and Reliance Industries limited.
Their mother Kokilaben was the main instrumental in brokering the truce between the feuding brothers and splitting the company in a successful manner.
After the split Mukesh got the control of the flagship oil refining, petrochemicals and manufacturing. Anil Ambani got the business control of power generation, financial services and the telecom unit.
Just after two years from the date of splitting RIL, Anil Ambani lead Reliance Anil Dhirubhai Ambani Group of company’s net worth was 5.5 billion dollars and Mukesh Ambani lead Reliance Industries net worth was 7 billion dollars.
Mukesh Ambani has a great deal of passion for his business and he remembers each and every person with whom he ever worked with. He is basically a family oriented person and he has always been serious in his business activities. His outstanding business execution technique, implementation capabilities and his guts to take the risk in disrupting the market is highly admirable.
Mukesh Ambani is an excellent wealth creator and he was one who created the world’s largest petroleum refinery at Jamnagar, India. This Refinery is fully a private sector crude oil refinery owned by Reliance Industries Limited. It was commissioned on 14 July 1999 with an installed capacity of 668,000 barrels per day (106,200 m3/d).
Under the able and efficient leadership of Mukesh Ambani, the Reliance Industries has grown in a phenomenal manner and on 10th September 2020 Mukesh Ambani became the 5th richest person in the world as per Forbes Magazine. His net worth has already been crossed 88.4 billion dollars mark for the first time after Reliance Industries became the first Indian company to have a market capitalization of more than 200 billion dollars.
Whereas, Anil Ambani Lead Reliance Anil Dhirubhai Ambani Group of company is now on the verge of Bankruptcy. The value of Ambani’s equity — after excluding pledged shares — had crashed to just Rs 144.60 crores ($20.4 million) in 2019. The total market value of Anil Ambani’s Reliance Group companies crashed to Rs 2,361 crores in 2019, compared to the peak of over Rs 4 lakh crores in 2008.
In 2008, Anil Ambani was the sixth richest person in the world according to Forbes, with a wealth of $42 billion. But in 2020 his RCom itself has over Rs 50,000 crore in debts. It’s assets are now up for sale and his brother Mukesh Ambani is going to purchase most of RCom assets. All other Anil Ambani’s companies are now in a collapsing mode.
Some of the Chinese banks such as Industrial & Commercial Bank of China Ltd (ICBC), China Development Bank and Export-Import Bank of China have reportedly sued Anil Ambani in London for defaulting on $708 million of loans including it’s interest. Apart from the same, few months back a U.K. court directed Reliance Group chairman Anil Ambani to pay 100 million Dolars towards a conditional order granted to three Chinese banks pursuing the recovery of over USD 680 million owed to them as part of a loan agreement.
Earlier Anil Ambani was completely relying on Chinese equipment/parts/materials for its Reliance Communications (RCom) telecom sector.
Whereas, Mukesh Ambani lead Reliance Jio Infocomm Ltd is not at all depending any items from China. That was the reason few months back he proudly told U.S. President Donald Trump that the Jio Infocomm Ltd was perhaps the only company in the World that did not use/depend any Chinese equipment yet.
Mukesh Ambani is a successful businessman and long term visionary. He always thinks about the long term implications and the benefit of his business rather than short term gaining, thereby actually taking less risk in his business. While taking his business decisions, he has been always taking care of his country’s long term interest.
The entire world is now having great deal of confidence on Mukesh Ambani and his business strategy. That is the main reason the ARAMCO of Saudi Arabia is still working on a deal to buy a 15 billion dollars stake in Reliance Industries Ltd.’s refining and chemicals business.
Mukesh Ambani is the real face of modern Indian business that stands to represent a bold image of Indian business sector that is civilized, evolving and revolutionary. He is a real master in business and he became the idol of each and every young Indian people who aspires to match his capabilities in the corporate world.
