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DHIRAJLAL HIRACHAND AMBANI (1932 2002)

ENTREPRENEUR PAR EXCELLENCE





SUBMITTED BY:

Aman Maloo
Pushpender Yadav
MBA (D)-II
SUBMITTED TO:
Dr. Niharika Maharishi
BROAD OVERVIEW OF PRESENTATION
LIFE & TIME

VISION AND MISSION

ACHIEVEMENT

CRITICAL APPRAISAL
PROFITS WE SHARE AND LOSSES ARE ALL MINE
LIFE AND TIME
DHIRAJLAL HIRACHAND AMBANI COMMONLY KNOWN
AS DHIRUBHAI AMBANI WAS BORN ON 28 DECEMBER
1932 AT JUNAGADH , GUJARAT TO HIRACHAND AND
JAMNABEN .

FATHER , A SCHOOL TEACHER . SIBLINGS INCLUDED TWO SISTERS AND
BROTHERS. DHIRUBHAI WAS THE SECOND SON.

HIGHLY INTELLIGENT, DISLIKED SCHOOL LESSONS AND CHOSE TO DO
PHYSICAL WORK INSTEAD. COULD NOT PURSUE A BACHELOR'S DEGREE
DUE TO FAMILY PROBLEMS.
MARRIED TO KOKILABEN IN 1954.
PASSED AWAY ON 06 JULY 2002. HE WAS SURVIVED BY KOKILABEN
AMBANI, TWO SONS, MUKESH AMBANI & ANIL AMBANI AND TWO
DAUGHTERS, NINA KOTHARI & DEEPTI SALGAONKAR.

BACKGROUND
MOVED TO ADEN, YEMEN AT 16. STARTED HIS CAREER AS A DISPATCH
CLERK WITH A. BESSE & CO. FOR A SALARY OF RS 300

IN DUE COURSE, PROMOTED TO MANAGE THE COMPANYS FILLING
STATION AT ADEN.

THE FIRST SIGN OF AMBITION TO ACHIEVE WAS OBSERVED IN EARLY
1950s WHEN HE MELTED SILVER COINS OF YEMENI RIYAL INTO METAL AND
SOLD IT TO BULLION MARKET IN LONDON. HE KNEW THAT THE INTRINSIC
VALUE OF SILVER WAS MORE THAN THAT OF FACE VALUE OF COIN.

AT ADEN , HE ACCQUIRED SKILLS IN HIGH SEAS PURCHASE & SALES,
MARKETING & DISTRIBUTION, CURRENCY TRADING, ACCOUNTING,
PREPARING SHIPPING DOCUMENTS, DEALING WITH BANKS AND
INSURANCE COMPANIES
WORK INITIAL DAYS
I DONT BELIEVE IN NOT TAKING OPPORTUNITIES
AMBANI RETURNED TO INDIA AND STARTED "MAJIN" IN
PARTNERSHIP WITH CHAMPAKLAL DAMANI IN 1958.

MAJIN WAS TO IMPORT POLYESTER YARN AND EXPORT SPICES TO
YEMEN.

THE FIRST OFFICE OF THE RELIANCE COMMERCIAL
CORPORATION WAS SET UP AT MASJID BANDAR IN MUMBAI.

IN 1965, AT ONE INSTANCE RELIANCE BUILT UP A LARGE HOLDING
OF YARN IN EXPECTATION OF PRICE RISE. DAMANI PRESSURISED
AMBANI TO SELL OFF THE STOCK AT THE EARLIEST. SO DHIRUBHAI
SOLD THE YARN STOCKPILE-TO HIMSELF, IN SECRET. TWO - THREE
WEEKS LATER, THE PRICE OF YARN SHOT UP AND DHIRUBHAI MADE
A WHOPPING PROFIT.

CHAMPAKLAL DAMANI AND AMBANI ENDED THEIR PARTNERSHIP
AND DHIRUBHAI VENTURED ON HIS OWN.
EMERGENCE OF BUSINESS IN INDIA
ONLY WHEN YOU DREAM IT YOU CAN DO IT.
"PURSUE YOUR GOALS EVEN IN THE FACE OF DIFFICULTIES,
AND CONVERT ADVERSITIES INTO OPPORTUNITIES."
AMBANI AND ARYAN MEHRA STARTED THE FIRST
TEXTILE MILL AT NARODA , IN AHMEDABAD IN
1966.

AGGRESSIVE MARKETING OF THE BRAND "VIMAL" IN
THE INTERIORS OF INDIA MADE IT A HOUSEHOLD NAME.

AMBANI BEGAN THE PROCESS OF BACKWARD INTEGRATION, SETTING
UP A PLANT TO MANUFACTURE POLYESTER FILAMENT YARN.

DURING RELIANCE'S IPO IN 1977 MORE THAN 58,000 INVESTORS FROM
VARIOUS PARTS OF INDIA SUBSCRIBED TO IT. DHIRUBHAI AMBANI IS
CONSIDERED A FATHER FIGURE IN PROMOTING THE EQUITY CULT
IN STOCK MARKET STATUS.

LATER DIVERSIFIED INTO CHEMICALS, PETROCHEMICALS, PLASTICS,
POWER.THE FINAL PHASE OF RELIANCES DIVERSIFICATION OCCURRED IN
THE 1990S WHEN THE COMPANY TURNED AGGRESSIVELY TOWARDS
PETROCHEMICALS AND TELECOMMUNICATIONS.
EMERGENCE OF BUSINESS IN INDIA
IF YOU WORK WITH DETERMINATION AND WITH PERFECTION,
SUCCESS WILL FOLLOW."
VISION & MISSION
THROUGH SUSTAINABLE MEASURES, CREATE VALUE FOR THE
NATION ACROSS THE ENTIRE SOCIO-ECONOMIC SPECTRUM
AND HELP SPEARHEAD INDIA AS A GLOBAL LEADER IN THE
DOMAINS WHERE WE OPERATE


CREATE VALUE FOR STAKEHOLDERS

GROWTH THROUGH INNOVATION

LEAD IN GOOD GOVERNANCE PRACTICES

USE SUSTAINABILITY TO DRIVE PRODUCT DEVELOPMENT

ENHANCE OPERATIONAL EFFICIENCIES

ENSURE ENERGY SECURITY OF THE NATION

FOSTER RURAL PROSPERITY
VISION
MISSION
"DON'T GIVE UP, COURAGE IS MY CONVICTION."
MILESTONES
1977

RELIANCE WENT PUBLIC WITH IPO

DHIRUBHAI INTRODUCED AN EQUITY CULT IN INDIA

A NEW MODEL OF BUSINESS LEADERSHIP FROM A BASE OF THE
BROADEST PUBLIC SHAREHOLDERS
1982-88

RELIANCE SUCCESFULLY COMMISSIONED POLYSTER MANUFACTURING
FACILITY AT PATALGANGA.

ANOTHER STEP IN BACKWARD INTEGRATION
"WE BET ON PEOPLE."
1993

PIONEERED THE FIRST EVER EURO CONVERTIBLE BOND ISSUED
BY AN INDIAN COMPANY FOR US$140 MILLION

RELIANCE RAISED RS 2172 CRORES FROM DOMESTIC CAPITAL
FOR SETTING UP WORLD CLASS REFINERY AT JAMNAGAR, GUJARAT.

THE LARGEST EVER PUBLIC OFFERING BY ANY INDIAN
CORPORATE.
1991

RELIANCE COMMISIONED PHASE-1 OF HAZIRA PETROCHEMICALS
COMPLEX.

CONSOLIDATED ITS POSITION IN POLYSTERS
MILESTONES
"MEETING THE DEADLINES IS NOT GOOD ENOUGH, BEATING THE
DEADLINES IS MY EXPECTATION."
1996-97

RELIANCE TAPPED THE US DEBT MARKET WITH YANKEE BOND
ISSUE FOR A TOTAL OF OVER US$ 600 MILLION. THE MATURITIES
FOR THESE ISSUES WERE 10-100 YEARS


1995

RELIANCE BECAME THE FIRST PRIVATE SECTOR COMPANY TO BE
RATED BY INTERNATIONAL CREDIT RATING AGENCIES.

ALSO BECAME THE FIRST PRIVATE SECTOR COMPANY FROM INDIA
TO RAISE US$ 300 MILLION IN THE INTERNATIONAL DEBT MARKET
MILESTONES
OUR DREAMS HAVE TO BE BIGGER. OUR AMBITIONS HIGHER. OUR
COMMITMENT DEEPER. AND OUR EFFORTS GREATER. THIS IS MY
DREAM FOR RELIANCE AND FOR INDIA."
MILESTONES
2000-02

RELIANCE CONSOLIDATED ITS POSITION AS THE SINGLE LARGEST
SHAREHOLDER IN BSE.

INDIAS LEADING POWER UTILITY COMPANY RELIANCE ANNOUNCED
ITS INFOCOM FORAY WITH A CAPITAL OUTLAY OF UPTO RS 25000
CRORES( US$ 5 BILLION) ADDRESING ENTIRE TELECOM MARKET IN
INDIA WITH A NATIONAL FOOT PRINT


1996-98

RELIANCE COMPLETED PHASE-II EXPANSION OF HAZARIA PETRO
CHEMICALS COMPLEX WITH AN INVESTMENT OF OVER RS 9000
CRORES. THIS INCREASED RELIANCE PRODUCTION CAPACITY
FOURFOLDS TO MORE THAN 6 MILLION TONNES PER ANNUM
2000-02

RIL AND RPL BECOME INDIAS TWO LARGEST COMPANIES IN TERMS
OF ALL FINANCIAL PARAMETERS

RPL MERGES WITH RIL, THE LARGEST EVER MERGER IN INDIA.
THE MERGER GAVE RIL THE DISTINCTION OF BECOMING INDIAS
FIRST PRIVATE SECTOR COMPANY, IN THE INTERNATIONALLY RATED,
FORTUNE GLOBAL 500 LIST OF THE WORLDS LARGEST
CORPORATIONS

RELIANCE RATED AS INDIAS MOST
ADMIRED BUSINESS HOUSE
MILESTONES
THE PROBLEM WITH INDIANS IS THAT WE HAVE LOST THE
HABIT OF THINKING BIG .
"I AM DEAF TO THE WORD "NO".
AWARDS
'BUSINESSMAN OF THE YEAR 1993', BUSINESS INDIA - 1994

AWARDED THE COMPANION MEMBERSHIP OF THE TEXTILE
INSTITUTE, UK, AN AWARD WHICH IS LIMITED TO 50 LIVING
MEMBERS (WHO HAVE "SUBSTANTIALLY ADVANCED THE GENERAL
INTERESTS OF THE INDUSTRIES BASED ON FIBRES) - 1994

'STAR OF ASIA' BY BUSINESS WEEK, USA - 1998.

AWARDED THE DEAN'S MEDAL BY THE WHARTON SCHOOL,
UNIVERSITY OF PENNSYLVANIA, FOR SETTING AN OUTSTANDING
EXAMPLE OF LEADERSHIP - 1998.

THE ONLY INDIAN INDUSTRIALIST IN 'BUSINESS HALL OF FAME' IN
ASIA WEEK - 1998.

CONFERRED THE INDIAN ENTREPRENEUR OF THE 20
TH

CENTURY AWARD BY FICCI - 2000
ENTREPRENEUR TRAITS

ABILITY TO CONVINCE

OPPORTUNIST

MANIPULATOR

STRONG CONVICTION AND AGGRESSIVE APPROACH

EXCELLENT INTERPERSONAL SKILLS

BELIEVED IN CHANGE, UPGRADATION AND INNOVATION

HIGHLY CALCULATIVE RISK TAKER
"YOU DO NOT REQUIRE AN INVITATION TO MAKE PROFITS."
"GIVE THE YOUTH A PROPER ENVIRONMENT. MOTIVATE THEM.
EXTEND THEM THE SUPPORT THEY NEED. EACH ONE OF THEM HAS
INFINITE SOURCE OF ENERGY. THEY WILL DELIVER."

CRITICAL APPRAISAL
HE WAS A BUSINESS MESSIAH FOR HIS
INVESTORS

HE MAINTAINED EXCELLENT INTER PERSONAL
RELATIONSHIP WITH EMPLOYEES & PARTNERS

THE WHOLE IDEA OF CREATING VALUE FOR SHAREHOLDERS WAS
PIONEERED BY DHIRUBHAI AMBANI IN THE INDIAN STOCK MARKETS

HIS DREAMS & STEADFAST VISIONS LED TO THE UNIMAGINABLE
EXPANSION OF RELIANCE EMPIRE
POSITIVE ASPECTS
PURSUE YOUR GOALS EVEN IN THE FACE OF DIFFICULTIES AND
CONVERT ADVERSITIES INTO OPPORTUNITIES.


AMBANI WAS A PERSON WITH LOT OF HUMILITY. IT IS EXTREMELY
DIFFICULT TO ACHIEVE SO MUCH IN LIFE AND STILL BE CONNECTED TO
YOUR ROOTS AND REMAIN HUMBLE. SUCH WAS HIS CONNECTION WITH
SHARE HOLDERS AND PUBLIC.

HE WAS COMPASSIONATE FOR THE SOCIETY AND WAS
INVOLVED IN A LOT OF PHILANTHROPIC ACTIVITIES
WITHOUT BEING BOASTFUL ABOUT IT.

IT INCLUDED ADOPTION OF PUBLIC HEALTH CARE,
BUILDING HOSPITAL, ECO FRIENDLY INITIATIVES, RURAL
DEVELOPMENT SCHEME, EMPOWERMENT OF WOMWEN ETC
CRITICAL APPRAISAL
PERSONALITY AS PERCEIVED BY PEOPLE
"BETWEEN MY PAST, THE PRESENT AND THE FUTURE, THERE IS ONE
COMMON FACTOR: RELATIONSHIP & TRUST. THIS IS THE
FOUNDATION OF OUR GROWTH
CRITICAL APPRAISAL
AS PER ONE WRITER, THERE ARE THREE PERSONALITIES OF
DHIRUBHAI AMBANI
- FIRST, IS A UNIQUE, LARGER THAN LIFE, A BRAND NAME. AND FOR
GUJARATI PEOPLE. HE HAS TREMENDOUS EMOTIONAL AND
SENTIMENTAL APPEAL. HE IS THEIR ULTIMATE MAN.
- SECOND , IS A SCHEMER, A LIAR, WHO REGRETS NOTHING AND
HAS NO VALUES IN LIFE.
- THIRD, WHO HAS A MORE SOPHISTICATED POLITICAL BRAIN, A
DREAMER AND A VISIONARY.

PEOPLE ARE ALWAYS GETTING THE THREE PERSONALITIES
MISTAKEN.
PERSONALITY AS PERCEIVED BY PEOPLE
TO ANOTHER WRITER, HE WAS A 'FRANKENSTEIN'S MONSTER
CREATED BY THE EXPERIMENT OF CLOSED INDIAN ECONOMY WHO
COULD MAKE OR BREAK PRIME MINISTERS BY EXERCISING A
CONTROL OVER MEDIA, STOCK MARKET & POLITICIANS.

A SENIOR LAWYER ALSO HAD AN EQUALLY STARK VIEW WHO SAID
'TODAY THE FACT IS THAT DHIRUBHAI AMBANI IS BIGGER THAN
GOVERNMENT.

WHATEVER SAID & DONE DHIRUBHAI AMBANI IS ARGUABLY INDIAS
MOST SUCCESSFUL ENTREPRENEUR OF THE CENTURY.


CRITICAL APPRAISAL
DHIRUBHAI WILL GO ONE DAY. BUT RELIANCE'S EMPLOYEES AND
SHAREHOLDERS WILL KEEP IT AFLOAT. RELIANCE IS NOW A
CONCEPT IN WHICH THE AMBANIS HAVE BECOME IRRELEVANT.
PERSONALITY AS PERCEIVED BY PEOPLE
Ambani's great achievement was that he showed Indians
what was possible. With no Oxford or Yale degree and no
family capital, he achieved what the Elite "brown sahibs"
of New Delhi could not: he built an ultramodern,
profitable, global enterprise in India itself. What's more,
he enlisted four million Indians, a generation weaned on
nanny-state socialism, in an adventure in can-do
capitalism, convincing them to load up on Reliance stock.
Still, Ambani seems destined to be remembered as a folk
heroan example of what a man from one of India's
poor villages can accomplish with non-shrink ambition.
An ordinary man with Extraordinary Talent

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