Articles
The Journey Of Dhirubhai Ambani
Reliance is a household name in India with various sectors under its umbrella like power, retail, textiles, telecommunications, renewable energy, construction and many other ventures. However, Reliance was not always at the top. The credit for the meteoric rise of the Reliance Group goes to the founder, Dhirubhai Ambani.
On the occasion of his of his birthday, let us take a look at his journey and the shaping of Reliance Industries.
Beginnings
Dhirubhai Ambani was the son of a school teacher and was born on December 28th, 1932 in British India. Having grown up in a family of modest means he migrated to Aden, Yemen at the age of seventeen to work as a clerk in A. Besse & Co., a transcontinental trading firm. It was here Dhirubhai, learnt about accounting, finances, trading and business skills. Having earned enough savings he returned back to India and started a company called ‘Majin’ with his cousin Champaklal Damani, which traded in spices and yarn with Yemen. During this time Dhirubhai Ambani and his cousin stayed in a small two bedroom apartment and operated out of a single room with three chairs.
Founding of Reliance Industries
After parting ways with his cousin, due to conflicting business temperaments, Dhirubhai then founded a textile trading company called Reliance Commercial Corporation which later came to be known as Reliance Industries. After some extensive marketing of the brand it slowly became a household name in India leading to the beginning of franchise outlets under the brand name ‘Only Vimal’. This brand became so famous that a team from the World Bank visited the manufacturing unit of Reliance Textiles.
IPO and expansion
Due to the reluctance of banks to lend him money, he decided to file for an IPO in 1977. He was also able to convince traders in Gujarat to become shareholders in his company by explaining that it would be profitable for them as well. The slow economy and government regulations did not affect the share value of Reliance Industries, owing to investor confidence. The company became so profitable their Annual General Meetings (AGM,) were held in stadiums, which was a first in India. Dhirubhai’s sons Mukesh and Anil Ambani also joined his company and started infusing new technology to offer scalability. They gradually expanded into petrochemicals, plastics and power generation and added them to their portfolio.
Awards and recognitions
Dhirubhai Ambani was posthumously awarded the Padma Vibhushan in 2016 which is India’s second highest civilian honour. He was also the first Indian to receive the Dean’s medal by the Wharton School for setting an outstanding example of leadership. The Indian Post released a stamp featuring Dhirubhai Ambani on 28th December, 2002.
Dhirubhai Ambani is a shining example of what an ordinary Indian can achieve if they have the mind for it and the ability to take risks. He is an example that strikes a chord with everyone because of his rags to riches story and will continue to inspire many generations to come.
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