BOMBAY, 15 July — It is very difficult to imagine Indian corporate life without Dhirubhai Ambani. The guiding star of the Rs. 68,000 crores Reliance group, he was an incredible man. A man like Dhirubhai Ambani happens just once in a lifetime.
His rags-to-riches story inspires one into believing that nothing is impossible. Whatever Dhirubhai did, he wanted to be the best. Today Reliance is the biggest private sector company, and is India’s only private sector company to figure in the Fortune 500. Dhirubhai was also the first to inculcate the equity culture in the layman with Reliance having the largest number of shareholders of over four million and is the only company which holds its Annual General Meeting in a stadium.
Dhirubhai’s life has proven that it is performance that matters and not pedigree. As a 17-year-old petrol pump attendant in Aden, Dhirubhai dreamt of creating a world class empire. He has indeed managed to do that! He has left behind a well run organization for his children but more than that, he also left for scores of Indians that no dream is impossible if tone is determined to achieve it.
With his passing away, people in Reliance have started talking in terms of AD (After Dhirubhai) and BD (Before Dhirubhai). Undoubtedly he has left a void that will never be filled, but for the Reliance group life in AD will not come to a standstill. His two sons, Mukesh and Anil Ambani are more than capable and, have in fact been running the show for the past few years. It is this assurance which saw the stock price of Reliance Industries and Reliance Petroleum perking up even after the demise of Dhirubhai.
There is no weighing concern over succession or concern over who would fit the shoes of Dhirubhai as this issue was taken care of by Dhirubhai himself. When Dhirubhai suffered a stroke in 1986, his two sons shouldered the responsibilities and their roles have since then been very well defined.
The elder son, Mukesh (44) assumed charge as vice-chairman and managing director of Reliance Industries Limited (RIL). Only a high-school matriculate himself, Dhirubhai made sure his sons had the best professional training to cope with a growing empire. Mukesh is an engineer from Stanford University and has focused on manufacturing, engineering and issues related to implementation of projects. He was responsible for getting the Patalganga petrochemicals project started, and managed expansions at Hazira and Jamnagar. He is now looking after the group’s infocom and biotechnology ventures.
On the other hand, Anil Ambani (42), is a management graduate from Wharton School. He has always been in the limelight and is more accessible. He is more of a finance man and manages the group’s finance, marketing, investor and public relations.
Dhirubhai, the chairman of the group, since the attack in 1986 has been involved in broad policy directions, laying down the broad guidelines. And the long-standing speculation that the two group companies Reliance Industries and Reliance Petroleum may go to the two brothers was snuffed out earlier this year when the two companies were merged. And now the division of responsibilities remains in tact.
The two daughters of Dhirubhai — Dipti and Nina — and their husbands — Raj Salgaocar of Goa and Shyam Kothari of the famed Pan Parag — do not interfere in the operations.
There are others also who are involved in running the group. Nikhil and Hital Meswani, sons of Dhirubhai’s sister are executive directors of RIL and RPL respectively and both have independent responsibilities. His other sister, Jashumatiben’s son is a manager in the Reliance Industries.
Of Dhirubhai’s two brothers, Natwarlal Ambani who passed away a few years back and Ramnikbhai, the latter is on the company board. Natwarlal’s two sons and Ramnikbhai’s son Vimal — after whom the group’s superbrand Vimal is named — are not involved in the running of the group’s businesses.
The group also has a strong team of hands-on professionals like Alok Agarwal, Manoj Modi and Amitabh Jhunjhunwala who look after specific functions like finance or head a group business like mutual funds.
For the first time ever, on July 31, 2002, Reliance Industries will announce its first quarter results for the current fiscal, without the presence of Dhirubhai. There is no threat to this largest petrochem company of India in the AD era. Reliance has a huge cash reserves position and the group is expected to stay focused in areas of power, oil and gas, telecom, infocom and biotechnology. The sons of Dhirubhai will carry this mammoth group from the old economy to the new economy.
Dhirubhai Ambani’s philosophy was think big. Think differently. Think fast. Think ahead. Aim for the best. All eyes are now on the sons, watching if they are able to adhere to the philosophy of their father, to surpass his feats.
