by Tarun » Wed Jun 26, 2002 12:30 am
Dhirubhai Ambani: A brief profile
TIMES NEWS NETWORK [ TUESDAY, JUNE 25, 2002 10:40:46 AM ]
\"I am not a loser,\" said Dhirajlal Hirachand Ambani, the man behind the success of the Reliance group.
Ambani, who founded the petrochemicals giant Reliance group, was born in 1932 in Chorwad village in Gujarat. He started out as a labourer, graduated to becoming a spice trader, and then set up his first cloth mill in Ahmedabad; finally building one of India\'s largest companies. The story of the small-time trader who within just four decades created a globocorp is part of Indian market folklore.
Dhirubhai has many firsts to his credit - from building the Rs 90 billion Hazira project to the GDR by an Indian company reporting a whopping net profit of Rs 10 billion. But one of his greatest achievements lies in catalysing shareholders\' spirit in India through bonuses and dividends.
Reliance Industries, which went public in 1977 with one of the largest public offerings of its time, has the largest number of shareholders at over 3.5 million. Ambani is credited with shaping India\'s equity culture, attracting retail investors in a market dominated by state-run financial institutions.
And today, Dhirubhai is easily the most popular businessman in India. The group, which began life as a tiny trading outfit in the narrow by-lanes of Mumbai\'s textile market, is now India\'s second-largest company, with sales of Rs 58,000 crore and annual net profit of Rs 4,110 crore.
Reliance is only the second Indian entry in the Fortune 500 list; at number 425, it is ahead of giants such as Marks & Spencer, Christian Dior and Northwest Airlines.
Reliance Industries is now spread across the textile value-chain - from petrochemicals to fabrics. Its massive economies of scale make it the biggest player of its kind by both Indian and global standards. The essence of Reliance\'s strategy: presence across the value chain to offset any downturn in individual businesses.
Interestingly, Ambani\'s success has dwarfed the controversies that surround him, notably his spat with Bombay Dyeing\'s Nusli Wadia.
Ambani lives in Mumbai with his wife, two sons - Mukesh and Anil - and their wives. He does not believe in retirement and continues to create ripples in the corporate world.