Dhirubhai Ambani Story
India’s late Business tycoon and Reliance Industries founder Dhirubhai Ambani was a person with vision, enthusiasm and risk-taker ability. Today on 6th June 2021 is the death anniversary of Dhirubhai Ambani so let’s share Dhirubhai Ambani story and life experiences.
The early grind
Dhirubhai Ambani was the son of a school teacher and was born on December 28th, 1932 (British India). Having grown up in a family of modest means, he migrated to Aden, Yemen at the age of 17. He left to Port of Aden, Yemen, in the year 1948, to work for “A. Besse and Co.” along with his brother Ramnikbhai. It was a transcontinental trading firm situated in Yemen.
Here Dhirubhai learned his foundation like about accounting, finances, trading and business skills. After some years of his working there, he earned enough savings and back to India. Then he started a company called ‘Majin’ with his cousin Champaklal Damani. Champakla Damani was Dhirubhai’s cousin who lived in Yemen with him. Majin was made up to import polyester yarn and export spices to Yemen.
Reliance Commercial Company’s first office was located at Narsinatha Street in Masjid Bunder. The office was a 350 sq ft space with a telephone, a table and 3 chairs. Initially, Dhirubhai had two assistants to help them to do their business.
The spar between Dhirubhai and champaklal Damani contributes to Reliance Industries.
It is assumed that both of them had different temperaments and different perspectives on how to do business. There were like ice and fire. The one was a conservative trader where the other was a proven risk-taker. One believes in building yarn inventories, and the second beliefs in building inventories to maximize profits. The clash terminated their relationship and as a result, Dhirubhai set out his own business.
The Start of Reliance
In 1966, Dhirubhai founded the Reliance Commercial Company, and on 8 May 1973, it officially announced Reliance Industries.
During this time, Ambani introduced the first brand ‘Vimal,’ which offered polyester fabrics for saris, shawls, suits, and dresses. Then after years, he diversified into petrochemicals and sectors like Telecommunications, Information Technology, Energy, Power, Retail, Textiles, Capital Markets, and Logistics.
He rose from nothing to build India’s biggest manufacturing kingdom and thus became one of the wealthiest men in the country. He wrote India’s corporate history with his risk-taking and enthusiastic vision. And hence he was included in the list of Forbes billionaires. Dhirubhai is also listed in the top 50 businesses in Asia from Sunday Times.
After some widespread marketing of Reliance, it slowly became a well-known name in India. This leade to the beginning of contract outlet under the brand name of ‘Only Vimal’. At some time brand name became so well-known that a team from the World Bank visited the manufacturing site of Reliance Textiles.
The IPO and expansion
Due to the unwillingness of banks to lend him money, Dhirubhai decided to file for an IPO in the year 1977. He made convince traders from Gujarat to become shareholders in his company by amplifying that it would be money-making for them as well.
These results Reliance Industry, the growth thereafter never slowed. The slow economy and government regulations/policies did not affect the share value of Reliance Industries because of owing investor confidence.
Then the rising sun arrived and the company became so profitable that their Annual General Meetings (AGM,) were held in stadiums. This huge step in the corporate industry was a first in India.
As per the business expansion, Dhirubhai’s sons Mukesh and Anil Ambani also joined hands with Dhirubhai in his company. They both started offering scalability by introducing new technology in business. Then the family gradually expanded their business into petrochemicals, plastics, and power generation.
Dhirubhai’s involvement in the stock market
Dhirubhai is always credited for launching an equity cult in the Indian stock market. Dhirubhai was a pioneer for his important role in transforming India’s stock market culture. Dhirubhai did this by portraying crowds from institutional investors to a market monopolized by state-run financial institutions.
He suffered a major second stroke on 24 June 2002. The first of which happened in February 1986. Following his first stroke in 1986, Dhirubhai handed over charge of Reliance Industries to both of his sons, Mukesh and Anil. In November 2004, in an interview, Mukesh Ambani unlocks that he had disagreements over ownership problems with brother Anil Ambani. After the death of Dhirubhai Ambani, the group was split into Reliance Industries Limited which is now headed by Mukesh. And “The Reliance Anil Dhirubhai Ambani” is driven by Anil Ambani.
So that’s it about Dhirubhai Ambani Story from rages to rich chasing vision and running toward enthusiasm.
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We will catch you in the next one till then take care of yourself and your family.