DHIRAJLAL HIRACHAND AMBANI (1932 – 2002) ENTREPRENEUR PAR EXCELLENCE

GROUP MEMBERS

1.SACHIN NIKAM2.K VIJAYKRISHNA3.SHODHAN K4.P CHAND5.CYRIL SIMON6.CN SUBHASH

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 ANDBROTHERS. 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 COMPANY’S FILLING STATION AT ADEN.

• THE FIRST SIGN OF AMBITION TO ACHIEVE WAS OBSERVED IN EARLY 1950’s 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 DON’T 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 ISCONSIDERED A FATHER FIGURE IN PROMOTING THE EQUITY CULTIN STOCK MARKET STATUS.

•LATER DIVERSIFIED INTO CHEMICALS, PETROCHEMICALS, PLASTICS,POWER.THE FINAL PHASE OF RELIANCE’S DIVERSIFICATION OCCURRED INTHE 1990S WHEN THE COMPANY TURNED AGGRESSIVELY TOWARDSPETROCHEMICALS 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.

• INDIA’S 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 INDIA’S 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 INDIA’S FIRST PRIVATE SECTOR COMPANY, IN THE INTERNATIONALLY RATED, FORTUNE GLOBAL 500 LIST OF THE WORLDS LARGEST CORPORATIONS

• RELIANCE RATED AS “INDIA’S 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 20TH CENTURY” AWARD” BY FICCI - 2000

ENTREPRENEUR TRAITS

• LEAD BY EXAMPLE

• 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 WAS ENDOWNED WITH PHOTOGRAPHICMEMORY FOR FACES & NAMES AND MAINTAINED EXCELLENT INTER PERSONALRELATIONSHIP 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 ACTIVITIESWITHOUT 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 INDIA’S 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

An ordinary man with Extraordinary Talent……