P.O.M.

CASE STUDY
LEADERSHIP AND CHANGE MANAGEMENT

GROUP MEMBERS
GAYATHRI SHIVARAM ZUBAIR SIDDIQUE MINAY MEHTA TANVI NAIK SNEHA MOITRA SNIGDHA MOITRA SAMEERA SANJAY AKSHAY VASAN

DHIRUBHAI AMBANI & RELIANCE

HE BUILT AN EMPIRE THAT IS ROCK SOLID AND HE WILL ALWAYS REMAIN AN ICON

PERFECT COMBINATION OF ENTERPRENEURSHIP & LEADERSHIP

He transformed Reliance from a company with a turnover of 640 million in 1976 to one with 620 billion in 2002. Starting with a small textile mill in Naroda, in 1966, he took Reliance to various areas like - Petrochemicals, polyester filament yarn, oil and gas exploration and production, refining and marketing of petroleum, textiles, power, telecom services, information management and financial services.

NEVER FOLLOWED TEXTBOOK STYLE OF MANAGEMENT

Instead he evolved a unique style which combined the American style of entrepreneurship, with Japanese focus on technology to this he added the innate shrewdness of a Gujarati businessman A perfect manager of time, money and men; exhibited a passion to find solutions to problems.

DHIRUBHAI STARTED RELIACE

When there were most govt. owned companies and they gave private players were given a step motherly treatment in issuing licenses and permits. Most of the companies depended on govt. owned financial institutions for funds, he raised capital from public by offering shares of his companies.

GETTING STARTED: Dhirubhai was born on Dec 28th 1932 to Hirachand Govardhandas Ambani and Jamunaben Ambani. Having done matriculation in in 1949, he left for Aden at the age of 17 His first job fill gas and collect money at Shell petrol station, earning Rs. 300 / month Within a few years he rose to a position of sales manager. Having worked for 8 years there he decided to return to India to start his own business.

BUILDING RELIANCE
On Dec 31, 1958 he retuned to Mumbai and started Reliance Commercial Corporation (RCC) with a borrowed capital of Rs. 15000 RCC mainly involved exporting commodities like ginger, cardamom, turmeric and cashew nut. Using his connections in Aden he exported a wide range of commodities there

BUILDING RELIANCE
How did he switch to textiles? In mid 1960s Govt. of India (GOI) introduced an export promotion scheme The earnings from the export of rayon fabrics could be used for import of nylon fiber This attracted him and he switched from spices to textiles In 1966, he set up spinning mill at Naroda with borrowed funds of Rs.280000 This was registered Reliance Textile Industries as a powerloom unit with paid up capital of Rs.150000

BUILDING RELIANCE
Another program of GOI, HIGH UNIT VALUE SCHEME, gave tremendous boost to the company It allowed import of polyester filament yarn against export of nylon fabrics. RCC benefited most from this scheme and its exports constituted more than 60% of exports under this scheme. There were rumors that this scheme was solely devised for Dhirubhai, but denied all the allegations , saying that he took advantage of the scheme when others kept their eyes shut, and when there was such a large margin of profit they should have taken its advantage

BUILDING RELIANCE
VIMAL THE BRAND The High Unit Value Scheme ended in 1978, so he then focused on domestic market, where Reliance Textiles was not very well known His first priority to create a strong brand image for Vimal under which RTI sold its fabrics in India to win the customers confidence He launched advertising campaigns, and also took steps to develop an efficient distribution system, as he found that existing marketing channels were inadequate.

BUILDING RELIANCE
PROBLEMS Reliance faced a lot of resistance from traditional cloth merchants, in the domestic market Confronted with the situation, Dhirubhai decided to move away from traditional wholesale trade and open his showrooms to tap new markets He appointed several agents from non-textile backgrounds He adopted the concept of company stores from its main competitor, Bombay Dyeing and pursued it on a grand scale

BUILDING RELIANCE
he toured the entire country offering franchises to shareholders. He promised to provide financial and advertising support In search of high volumes he identified a new market segment non-metro urban segment Thus by 1980, Reliance fabrics were available all over India through 20 company owned retail outlets and over 1000 franchised outlets, and over 20000 retail stores

Vertical Integration
It describes a style of ownership and control The degree to which a firm owns its upstream supplies and its downstream buyers determines how vertically integrated it is. These kind of companies are united through a hierarchy and share a common owner. Each member of hierarchy produces different products or service and the products are combined to satisfy a common need. Its is a contrast of horizontal integration One method of avoiding the hold up problem. Monopoly produced through this method is called vertical monopoly. It is more appropriate to call it a cartel

Backward Vertical Integration

The company sets up subsidiaries that produce some of the raw materials used in the production of its products. Control of these subsidiaries is intended to create a stable supply of inputs and ensure a consistent quality in their final product that they make. It is mainly done to minimize costs by centralizing the production of final product and its inputs.

Start of Integration
To setup a polyester filament yarn (PFY) at Patalganga(1981) To make it a world class plant equipped with the best machinery and having best facilities

Technology was sourced from USAs Du Pont De Nemours Dhirubhai had no intentions of making it an equity partner. He thought that since the tech was easy available in the international market there was no need for it. Even though the demand being 6000tpa, he built a 10,000 tpa plant that too with a built in expansion capacity of 15000tpa.

Problem
The govt. took a decision to reserve PFY for small scale weavers.

There was a considerable decline in demand. Cauz of which the bigger mills were compelled to use cotton.

Solution
Dhirubhai announced a buyback scheme.
According to it," Reliance will sell its Recron brand of yarn to powerlooms. These powerlooms would then sell the grey cloth back to the company for finishing and eventual sale under the VIMAL brand name.

Sideways integration
Manufacture of linear alkyl - Detergent manufacturers benzene (LAB) - Plastic processors Thermoplastics like poly vinyl chloride (PVC), high density poly ethylene (HDPE), low density poly ethylene (LDPE)

Petrochemical intermediaries like paraxylene, n-paraffin and mono ethylene glycol (MEG) and ethylene which are the basic raw materials for all petro products and intermediaries. And finally it entered in to production and extraction of oil

Most cherished project

At Hazira in 1991 To build the largest multi-feed ethylene cracker plant in the world.

Largest refinery-Jamnagar
Commissioned in 1999.
Capacity of 27 million tpa. Single largest investment ever mad at a single location in India

Besides the refinery , the plant included: -India's largest port terminal -fully automated rail-road loading -Product dispatch terminal -3.5 million tank farm -500 MW power plant -12 mgd sea water desalination plant -10 GB IT network connecting 50 servers and 2500 terminals with 200 km long optic fibre cables. This plant accounts for 25% of Indias total refining capacity.

Characteristics:Continuous vertical integration

Consolidation of internal capabilities generated through horizontal diversification Efforts to compete this integration through investment in NGL/naphtha cracker and in oil extraction itself.

STOCK MARKET ADVENTURE

THOROUGH REVOLUTIONIST

Having understood the psychology of Indian capital markets & mindset of Indian investors he introduced the Equity Culture in India He gave importance to middle class investors and by doing so he involved millions of middle class investors Reliance went public in 1977, and had its first AGM in the same year, it had 58000 investors Its investor base was so large that at times executives had to go to small cities with share certificates and such other correspondence and post them locally

STOCK MARKET ADVENTURE

Reliance holds record for bringing out the single largest domestic issue of more than Rs.21 billion in convertible bonds for Reliance Petroleum in 1993. Marketing capitalization of Reliance 1980 1.2 billion 1990 9.96 billion 1995 96.2 billion

STOCK MARKET ADVENTURE

The end of High Unit Value Scheme of 1978 brought a dip in profits of Reliance; in spite of this Dhiru declared a dividend of 27%. Whenever in need of money, Dhirubhai opted for public issue From 1979-1982 it brought out issues for different purposes like financing a worsted spinning mill, modernizing its already existing textile mill, etc. and to overcome bear syndicate prices respectively.

STOCK MARKET ADVENTURE

IN 1979 Reliance introduced an innovative the partially convertible debentures. In spite of it being difficult to gain permission from controller of special issues, due to his constant lobbying he gained acceptance for the same This issue was over subscribed 6 times and soon convertible debentures (partial and whole) became instruments of choice The 1982 issue generated Rs. 500 million, the biggest in those days

STOCK MARKET ADVENTURE

On march 18, 1982 a bear syndicate from Calcutta sold 1.1 million Reliance shares worth Rs.160 million in bulk This was all a part of a planned shortselling strategy to buy the same shares at a cheaper rate making considerable profits Then Dhirubhais loyal brokers bought back all the shares, which led to an increase in share price A company could not buy its share, so a co. in the name of friends of Reliance Association was registered, it bought 8,57,000 shares out of the total 1.1 million shares sold by Reliance.

STOCK MARKET ADVENTURE

After this incident he was waiting to take revenge on the bear syndicate. The Association which bought the shares, sought delivery on 30th April 82, a Friday, which the bear syndicate did not have So it asked for more time which the association refused and demanded Rs.50 a Badla charge Exchange parties tried in vain to bring about a compromise between the 2 parties Then began the panic of buying Reliance shares, and the prices were at an all time high By May 10th crises ended, and Dhirubhai finally succeeded in taming the bull

CORPORATE BATTLES
CRITICISMS Dhirubhai was considered to be a manipulator Accused for using more than the usual ways of obtaining licenses, getting quick approvals for public issues and capital goods imports, and for getting policies formulated in favor of Reliance Reliance was known to engage politicians, journalists and others to increase the sphere of influence Some businessmen described Reliance as an out of control monster, a bubble that would burst any moment

CORPORATE BATTLES
ANSWERS TO THEM

Not all analysts agree to all that; they felt Dhirubhai was quick to recognize and exploit opportunities, who believed that business is nothing but a web of relationships and obligations Keeping this in mind he created favorable centers among the most important areas where power vested Bureaucrats, Ruling Politicians, Media His amazing ability to make the best use of the state and its policies was responsible for expansion of Reliance He believed that business was not all about ethics and morality; it was about expansion and success

CORPORATE BATTLES
THE FIGHT (DHIRUBHAI V/S NUSLI WADIA)

Both were known to use their business and political connections to suit their ends During Janata Party rule (1977 1979), Nusli Wadia got permission to build a 60000 tpa (DMT) plant. But before the intent letter was converted into license, Congress came into rule and his license was delayed to 1981 At the same time Dhirubhai obtained license to build a PTA plant. This infuriated Nusli Wadia and marked the beginning of one of the major battles in history of Indian business which lasted for years

CORPORATE BATTLES
THE FIGHT (DHIRUBHAI V/S GOENKA) IN 1980s Ramnath Goenka, proprietor of Indian Express Group tried often to act as a mediator to solve conflict between Nusli and Dhirubhai, but in vain He considered him his son and urged Dhirubhai to end their rivalry; Dhirubhai made promises that were false and continued his fight Goenka felt betrayed and then he started a series of press campaigns and assaults against Dhiru, amidst which he had his first stroke in 1986

CORPORATE BATTLES
Goenka then formulated a fresh assault issuing statement that Reliance had smuggled extra machines in the country which lead to his excess built capacity Result notice from customs, duty and penalty claim of 1.19 billion on Reliance But Dhirubhai retained public confidence and slowly turned tables against Goenka Result nationwide raid against Express group and number of cases filed against it Dhirubhai was victorious

POLITICAL BATTLES
Dhirubhais good relations with the then PM Indira Gandhi, gained him several licenses and permissions But after her assassination in 1984, in Rajiv Gandhi's rule, a series of problems surfaced V. P Singh, finance minister of his cabinet, decided to shift PTA imports from the open general category to the limited permissible list. Since this could be of problem to Reliance, Dhirubhai sniffed the problem and moved very fast. He between may 27th & 29th like Standard Chartered, societe Generale and the State Bank of India to issue letters of credit for almost a years supply of PTA app. 60,000 tonnes and the banks issued LC worth Rs. 1.1 billion

POLITICAL BATTLES
the last LC was opened just a few hours before the govt. announced the changed policy Finance minister, not very happy with this; result 50% import duty on PTA. In 1986 Reliance also thought of converting nonconvertible debentures into convertible ones, but F.m. was against this But once he was transferred to the defence ministry the conversion was permitted and pending licenses were also cleared

POLITICAL BATTLES
October 1986 turned out to be quite favorable for Reliance The debenture conversion was highly beneficial A secret meeting between Dhirubhai and Rajiv Gandhi seemed to trigger of decisions in favor of Reliance Some more pending licenses were cleared, customs levy of Rs.3 per Kg of PTA was abolished, Patalganga complex granted refinery status.

Reliance without Dhirubhai

In 2002, Reliance Group turnover of Rs. 620 billion, assets worth Rs. 564.85 billion and a work force of 85000 people accounted for 5% of the Central govt.s total revenue It contributed 3% of Indias GDP, 5% of the total exports, 9% of the GOIs indirect taxes an nearly 10% of the profits of the entire corporate sector One out of every 4 investors was a shareholder of Reliance

Reliance without Dhirubhai

Reliance acquired IPCL, Indian Petrochemical giant which gave it a sound footing in the global petrochemical market In 2004 it took over more than 35% of the global market which made it the 11th largest polymer producer in the world With amalgamation of RPL with RIL, it became the only company in the world to have fully integrated world scale operations in oil an gas exploration and production, refining and marketing, petrochemicals, power and textiles

Reliance without Dhirubhai

Presently reliance enjoys global ranking in all other business and its shares lead the domestic market According to the global Fortune 500 rankings, Reliance ranks among top 200 companies in terms of net profit, amongst top 300 in terms of net worth, amongst top 425 in terms of total assets and amongst top 500 in terms of sales Reliance Mobile provides cellular telephony in 13 states and thousands of villages across the country Reliance Power intends to attain the objective to achieve 10,000 MW in the next decade The group has also entered into insurance sector with Reliance General Insurance and Reliance life insurance

Reliance without Dhirubhai

CRITICISMS Some sceptics believe that Reliance would no longer be the same after Dhirubhai Because its extraordinary growth was based on vision, energy and lobbying power of Dhirubhai as well as the willingness of the govt. to promote its expansion Whereas the competition now is with major multinational players whose ability to influence govt. in various ways is well known

Management Mantras
GROWTH has no limit keep revising your vision LEAP, LOOK, LEAP If you make a plan stick to it & keep updating it GROWTH = LIFE Think BIG, project with clear vision and move ahead with great speed to achieve your goal Each one has an infinite source of energy support them to explore

NURTURE & MOTIVATE THE YOUTH

BUILD It is more productive to COMPETENCIES create competencies around people & process to create value

Management Mantras
BREAK OUT OF YOUR ORBIT BET ON PEOPLE TRUST IS A 5 LETTER WORD FOR SUCCESS Break your hierarchy orbit and rise one level higher Trust is the foundation of growth. Trust is never partial.

REJECT INCREMENTAL THINKING BE HUMBLE

Ideas are no ones monopoly. Encourage all to think out of the box Success is a matter of teamwork of employees, shareholders. Never let them down in turn they will not let you down

Management Mantras
Do as much to acquire SHUN PRETENCE knowledge and

DETAIL, DETAIL, DETAIL ACHEIVEM ENT IS HISTORY LOOK AHEAD

delegate the best to the rest Pay attention to detail

Any achievement is an instant history, it becomes past as soon as it is achieved

DEATH OF AN ICON
ON JLY 6TH 20 02, The Founder of Reliance Mr. Dhirajlal Ambani died after a 13 day battle for survival. This day is still remembered as Black Day in Indian corporate history It is said that all good things come to an end, but not in the case of this revolutionist this fact is proven from one of his famous quotes 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.

His funeral saw thousands of people attending. Mukesh and Anil Ambani can be seen carrying their fathers body as per tradition

The Family Tree

ANALYSIS
THOROUGH DETERMINATION: It is seen in the stage when he decides to go to Aden, having done only his matriculation and even though he came from humble backgrounds. STRONG POSITIVE VISION: When he decides to come back to India in spite of being offered a high post that too in a foreign country, and also takes up the huge challenge to start his own business EXPLORING OPPUTUNITIES: when he makes the best use of govt. schemes to boost his sales

ANALYSIS
IMPORTANCE TO CUSTOMERS: marketing of Vimal CONVERTING PROBLEMS INTO OPPURTUNITIES: when he decides to leave traditional wholesaling and open showrooms OUT OF THE BOX THINKING: when he decides to offer franchises to his shareholders, thus ultimately handing the showrooms in the hands of the owners and keeping the shareholders intact and increasing the goodwill.

Reliance group of companies

RELIANCE INDUSTRIES LTD RELIANCE CAPITAL LTD. RELIANCE PETROLEUM LTD. RELIANCE INDUSTRIAL INFRASTRUCTURE LTD. RELIANCE POWER RELIANCE RELECOM LTD. RELIANCE INFOCOM RELIANCE GENERAL INSURANCE CO. LTD. RELIANCE LIFE SCIENCES PRIVATE LTD.

MUKESH AND ANIL

Right from the time he suffered his first stroke he groomed his sons to take care of day-today operations of Reliance He imbibed in them the quality to think BIG Despite their education the major training came from Dhirubhai After his demise Mukesh was appointed Managing director of the company and Anil became the Vice Chairman It remains to be seen whether Reliance will maintain its lead and growth over multinationals in years to come

CURRENT SITUATION
The Ambani brothers split; and own and manage their separate business entities as of today: -

THE DIVISION

1.

2.

3.

Reliance Energy (Rs.4593 crs.) Power generation. Power distribution. Reliance Infocomm (Rs.5307 crs.) Mobile services. Basic telephony. Reliance Capital (Rs.298 crs.) Non-Banking financial company.

1.

2.

Reliance Industries (Rs.73,184 crs) Oil refineries. Petrochemicals. Oil retailing. Oil Exploitation. IPCL (Rs.9386 crs.) Petrochemicals.

If it is not the biggest its not worthwhile was the motto of the Reliance patriarch late Dhirubhai Ambani His sons Anil and Mukesh seemed to stick to it to the maximum level even in their ownership battle of 99000 crore empire
It is believed that even the spirit of Dhirubhai would not have envisaged a corporate battle like this one

Their father Dhirubhai, who died in 2002, left no clear will for heirs of the family The split was fashioned like a soap opera with new twists and turns unraveling everyday in this sibling rivalry In fact it bettered the reel soap operas in its drama and action A lot of colorful reasons were attributed to the discord, ranging from Anils foray into politics to gossipy ones like the wives not getting along But industry observers say that at the heart of the dispute were the divergent views of the brothers on certain key initiatives

Both in business and family the Ambani brothers moved so far away that it took their mother Kokilaben Ambani and few well wishers to bring them together for an agreement If Dhirubhai who founded Reliance Empire and took it on the path of prosperity, would have been proud of the biggest private sector entity it would have posed as much difficulty for his wife to rip off the seams and divide the joint fabric of the business group

International and domestic media alike played up the events in the Ambani gharana much to the delight of the public and agony of the investors. This whole war episode extended to a period of seven months and finally on June 18 2005 they legally split as per the settlement made by Kokilaben In the longest and fiercest battle of corporate India, the feud between the brothers kept 3 million shareholders waiting for the settlement

In the end the episode can be concluded saying that - what is more important than who got what here is that the three million investors have not been affected

If there is one part of Dhirubhais legacy that the sons are taking forward - it is to keep Reliance in the news and not always for the right reasons

RELIANCE IS NO STRANGER TO CONTROVERSY

The only difference this time was that the storm was within the family and closely knit Reliance was in news since 1968 when Dhirubhai started his textile trade to the recent telecom scam, Reliance was quite often in news for the wrong reasons In late 1980s the famous Ambani vs. Nusli Wadia war 1991 RIL faced serious charges of share switching & was hauled up by SEBI

1996 the BSE suspended trading in Reliance because of negligence in duplicate shares and share-switching End of 1990s RIL faced an inquiry by SEBI into allegations of price manipulation & insider trading with regard to the sale of its stake in Larson & Toubro to Grasim Industries 1998 two of Reliance's senior executives have been accused of violating the Official Secrets Act IT IS SAID THAT DHIRUBHAI THRIVED ON CONTROVERSY`

THE TRUE STORY OF

THE RELIANCE SPLIT

HOW IT STARTED
The fight between the two siblings started becoming public as early as July 2004, at a board meeting Various e-mails and documents circulated within Reliance, conveniently made their way to the media They showed that the board had introduced a supplementary agenda, which sought to redefine the role of managing directors Subsequently, the resolution was passed by the board which gave Mukesh the power to reduce Anil's role in the company

A furious Anil shot off several communiqus to Mukesh and board members questioning them - on why the resolution had not been pre-circulated, a procedure that had to be followed before a resolution was passed On Nov. 18 2004 Mukesh Ambani admitted differences with the younger brother Anil Ambani to a television channel Initially Anil Ambani remained silent for a few days but later admitted differences with his brother From then on, there seemed to be no stopping the brothers and their confidantes

The row between the siblings had its origins in the redefinition of roles of CMD, Vice Chairman and MD in the Reliance Industries board, which raised heckles in the Anil camp Anil claimed that he was kept in dark about most of the decisions of the board Anil raised doubts over the equity pattern of Reliance Infocomm and abstained from voting a buyback resolution tabled in the Reliance Industries board meet Anil was so angry that he told the media that it "is me against the Reliance XI" SEBI kept a close look at RIL scrip as a whole

Claiming that the board has chosen to ignore all my communication Anil leveled a series of charges against Indias largest private sector In January 2005, Anil Ambani resigned from the board of the group company IPCL However, the IPCL board kept his resignation in abeyance Things remained low till March end when news trickled of a possible settlement between the brothers Meanwhile, Reliance Infocomm got embroiled in a controversy with BSNL over illegal routing of international calls The dispute ended with the former having to cough up a huge compensation to BSNL

In April, Anil Ambani refused to ratify the annual report of Reliance Industries Things cooled down in the month of May, as the Finance Minister P Chidambaram hinted at an early settlement between the brothers And finally the brothers smoked the peace pipe on the midnight of June 18 and June 19 as per the settlement letter formulated by their mother Kokilaben Ambani Aided by trusted family friend K V Kamath and valuer Nimesh Kampani, Kokilaben's formula for truce envisaged carving out a separate holding company

KOKILABENS SETTLEMENT LETTER

Kokilaben Ambani, mother of Anil and Mukesh Ambani and widow of Reliance founder Dhirubhai Ambani, in a statement said that she was amicably resolved the issues between her sons, which was presented to the media In a signed statement on her personal letterhead, Kokilaben wrote that she was confident that her 2 sons will uphold the values of their father and work towards the goodwill of the 3million shareholders of the company Details of the division of companies of Anil and Mukesh Ambani were also given

AMBANI WAR A LOST OPPURTUNITY

During the battle the investors were worried, they wanted their investments to be unaffected by the fight or any asset split The way in which they behaved is understandable but what defied logic was the way in which the Manmohan Singh govt. behaved Serious charges of misgovernance were leveled against the company The government was supplied with enough documents to justify a proper probe into the manner in which the investors' interests were compromised

Forgotten were the key issues the dispute threw up Nor did the commentator consider it his responsibility to examine the serious charges were and whether the ordinary investors in the group were taken for a ride The ministry of company affairs moved very slowly on the issue The Securities and Exchange Board of India also displayed no desire to take proper action on the many instances of misgovernance in Reliance

And when the brothers have smoked the peace pipe, the few investigations that were launched seem to have been dropped No one got to hear any progress in them Why didnt Company Affairs Minister Prem Chand Gupta not come out with a clear answer on the progress of the investigations? This is not surprising during the war every one wished the brothers patched up to keep alive the legacy of their great father Even Finance Minister P Chidambaram said he was sad to see them fighting and hoped that they would sort out their problems through consultations

There is no problem in ministers wishing the two brothers well But what about their responsibilities? Shouldn't they have taken note of the several instances of violation of the governance norms, cited by the younger Ambani? And why didnt these unresolved governance issues in the country's largest corporate entity not become a subject of heated debate in Parliament? Aren't our members of Parliament interested in the observance of governance norms in Indian companies?

It may not be fair to point fingers only at ministers and parliamentarians, even a few commentators did the same One commentator even complimented the Manmohan Singh govt. for staying out of the issue, and called it its neutrality Should such neutrality be complimented which is nothing but inaction? On the contrary, such neutrality should be criticised for not having taken the necessary action against those found guilty of violating governance norms

The point that seems to have been missed is that the Ambani dispute had given the media and the investing community the first real opportunity to examine and analyse the way India's largest corporate entity was operating over the years. This was a rare opportunity. And several sections of the media grabbed it Every investor had benefited from this. There is now greater transparency in the way Reliance is held and is run. It is a pity that the government did not act on the complaints If it had, we could have expected even more transparency and better governance

ALLS WELL THAT ENDS WELL

When you see restructuring or separations in a family (firm), value has almost always been destroyed. This is the first case where value has been enhanced. In that way it has been a win-win ending This is evident from the fact that years after legendary industrialist Dhirubhai Ambani died after a stroke, the companies founded by him continue to be investors' favorites, even though the group was split between his two sons Mukesh and Anil

MUKESH AMBANI

MUKESH AMBANI
BIRTH AND EDUCATION Mukesh Ambani was born on 19th April 1957 in Aden, Yemen

Began the MBA program at Stanford Business School but dropped out of his first year in order to assist his fathers ongoing efforts to built the Patalganga petrochemical plant

MUKESH AMBANI
EDUCATION A brilliant student, Mukesh holds a Bachelor of Chemical Engineering from the University of Mumbai Department of Chemical Technology (UDCT) He began the MBA program at Stanford Business School, but dropped out of his first year in order to assist his fathers ongoing efforts to built the Patalganga petrochemical plant.

MUKESH AMBANI
CAREER Joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibers and further into petrochemicals He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India, with a present capacity of 6,60,000 barrels per day at 10,000 crores

MUKESH AMBANI
CAREER Set up the largest and most complex information and communications technology initiative in the world in the form of Reliance Infocomm Limited He is also steering Reliance's initiatives in a world scale, offshore, deep water oil and gas exploration and production program And also a pan-India petroleum retail network involving 5,800 outlets and a research-led life sciences initiative covering medical, plant and industrial biotechnology

MUKESH AMBANI
ACHIEVEMENTS Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006 Had the distinction and honour of being the co-chair at the World Economic Forum Annual Meeting 2006 in Davos, Switzerland Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, November 2004 Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom, October, 2004

MUKESH AMBANI
ACHIEVEMENTS Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine, September, 2004

Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine, August, 2004
Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, May, 2004 Ranked No.1 for the second consecutive year, in The Power List 2004 published by India Today, March, 2004

ROSTER OF THE RICHEST IN THE WORLD

MUKESHS MANTRA OF WORK

Think Big. Challenge conventional wisdom. Think long-term. Dont get distracted by short-term objectives. Always aim for the best. Not just best in India, but in the whole world. Demand excellence. Never compromise. Embrace the information technology revolution. Make the fullest use of technology. Create leadership qualities and above all, trust in you people. Work Hard. There is no substitute for determination and perseverance.

ANIL AMBANI

ANIL AMBANI
BIRTH AND EDUCATION Born on June 4, 1959 in Aden, Yemen Did his Bachelors in Science from University of Bombay Masters in Business Administration The Wharton School at the University of Pennsylvania

ANIL AMBANI
CAREER Joined Reliance in 1983 as Co-Chief Executive Officer He pioneered India Inc's forays into overseas capital markets with international public offerings of global depository receipts, convertibles and bonds Starting from 1991, he led Reliance in its efforts to raise, around US$2 billion from overseas financial markets. In January 1997, the 100-year Yankee bond issue was launched under his stewardship

ANIL AMBANI
ACHIEVEMENTS Elected as an independent member Rajya Sabha MP in June 2004. But he resigned voluntarily on March 25, 2006 'CEO of the Year 2004' in the Platts Global Energy Awards Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat

ANIL AMBANI
ACHIEVEMENTS 'The Entrepreneur of the Decade Award' by the Bombay Management Association
'Businessman of the Year Award' by leading Business Magazine, Business India in 1997 'MTV Youth Icon of the Year' in September 2003

ANILS MANTRA OF WORK

It is often said, people, who are crazy enough to think that they can change the world, are the only ones that actually do!

ANILS MANTRA OF WORK

Relationship and Trust these are the foundations of success Work with determination and with perfection, success will follow Meeting deadlines is not good enough. Beating deadlines is what is required. Pursue your goals even in the face of difficulties In every adversity, there is opportunity Do not accept defeat Challenge negative forces. The past will give in You will certainly succeed. Never give up.

ANILS MANTRA OF WORK

Do not accept defeat Challenge negative forces. The past will give in. You will certainly succeed. Never give up Hope is your most powerful weapon. Selfconfidence is your greatest asset Ordinary people, when motivated, achieve extraordinary things Recognition is your greatest reward. Work till your last breath. Work is worship.

DHIRUBHAI AMBANI INTERNATIONAL SCHOOL

"The actions of a great man provide inspiration to others. Whatever he does becomes a standard for them to follow." -The Bhagavad-Gita

The Dhirubhai Ambani International School is an elite school in Mumbai built by the RIL, named after the late patriarch of the conglomerate, Dhirubhai Ambani Currently under the chairpersonship of Nita Ambani The school was built in 2003, and is one of the few in India that offer the International Baccalaureate Program

Unlike most school programmes in India that focus on rote learning, schooling is done through projects, drawing, story-telling and role-play. The school has a current strength of 1,000 with a faculty of more than 100 members.

DAIS

ANIL & MUKESH AS INDIVIDUAL ENTERPRENUERS

Brothers or rivals?? It is left to be seen But the two of them control our lives.

Right from the current in your bulbs to the tinker in your telephone to what you eat, wear, cook and entertain upon it all touches either of the Ambani brothers

The country breathes Ambani day-in and day-out in all its chores In the process the Ambani wealth goes on burgeoning many fold though the two take different stances

Furthermore
Fertilizers, oil n gas explorations apart the brothers have spread their tentacles in the media and entertainment industry with and alacrity that is astounding, indeed!!

STEPPING INTO THE ENTERTAINMENT INDUSTRY

Mukesh True to his wont, Mukesh has moved in silently, RIL is on the threshold of launching 3 channels, including one for business and one for general news There is a buzz about him doing much more than a few news channels The show industry is agog with expectation and with apprehension

A SNEAK PEAK
While trilling the trillions and buzzing the billions 24/7 Mukeshbhai still has time to think of himself and his family For them he is building Antilla which is a 27 floor residence

4532 sq. km. house Costing 120 crore 6 floors for parking their 167 cars 4 for open air balcony gardens 2 for spa 3 for maintenance to count a few. Phew!! 4 floors for the family and a HELIPORT at rooftop RDX Explosion safe and can withstand an earthquake measuring 8 on the Richter scale

STEPPING INTO THE ENTERTAINMENT INDUSTRY

ANIL While Mukesh is playing his cards totally close to his chest, Anil has no such suspense to create and is all set to unleash both the big and small screens There he goes to buy 23 screens on Rave Entertainment and gets hold of Bangalore based animation co. Anright Infomedia The tinsel towns biggest icon the Big B himself has already gathered in his kitty

STEPPING INTO THE ENTERTAINMENT INDUSTRY

Anil has carved out a big niche for himself by acquiring the Adlabs chain Also has big time plans of barging into feature film production with deep, deep pockets to rope in the biggest of stars and technicians ADAG has also made financial investment in channels like TV TODAY, NDTV, besides hobnobbing with BBC He pushes the envelope with his social networking site, BigAdda.com to give Orkuts and the Myspace.com a run for their money

STEPPING INTO THE ENTERTAINMENT INDUSTRY

Then also there is this rolling out of the Big FM radio channels in 45 cities making it the bigger than the existing biggest radio channels Sun, and Radio Mirchi This year end will see the company bulldozing into DTH services with a target of 2-3 million households under its canopy that too in the first year itself Furthermore, the success of Zapak.com 1 million registered within a few months of its launch is the stuff true champions are made of

AND HE HAS NEVER STOPPED RUNNING

And thats how the show world is Ambaniised!!!!!! On the face of it is one buy here and one holding there what people dont see is the picture ahead which the brothers are aiming It is the power of x raying that make the brothers one (or shall we say, two) of a kind!!!!!

TO CONCLUDE:
IS THE LEGECY OF THE RELIANCE PATRIARCH DHIRUBHAI RIGHTLY CONTINUED?? Isnt the answer obvious??? His sons have parted ways but it has been to good effect in the final analysis Even Kokilaben settled the issue keeping in mind the proud legacy of her husband which was is, and always will be Karlo Dunia Mutthi Mein

Thus, the legacy indeed continued with a double impact!! Instead of ONE trillionaire company, there are TWO trillionaire Ambani conglomerates
So there you are It is DOUBLE the DUNIA in DOUBLE the MUTTHI