24/04/2016
Inspiring Biography Of Dhirubhai Ambani For Young EntrepreneursAugust 6, 2015/ SUCCESS STORY
Dhirubhai H. Ambani, the Founder Chairman of Reliance Group, is credited to have brought about the equity cult in India in the late seventies. He is regarded as an icon for enterprise in India. A man far ahead of his times, he epitomized the dauntless entrepreneurial spirit ‘dare to dream and learn to excel’. He dared to dream on a scale unimaginable before in Indian industry.
Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling bhajias to pilgrims in Mount Girnar over the weekends. He moved to Aden, Yemen after completing his matriculation at the age of 16. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.
He started his first textile mill at Naroda, near Ahmedabad in 1966 and started the brand ‘Vimal’. He built India’s largest private sector company, Reliance India Limited, from a scratch. Over time he diversified his business into a core specialization in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.
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The story of Reliance Industries (RIL) is almost folklore in India. It was founded in the late 1950s by the late Dhirubhai Ambani, a former petrol-pump attendant, who even in the 1960s lived in a one-room chawl in Mumbai with his wife and children.
The group’s interests now include the manufacture of synthetic fibres, textiles and petrochemical products, oil and gas exploration, petroleum refining, besides telecommunications, media, retail and financial services.
Dhirubhai showed he had that street smarts and a nose for profit early. While working in Aden, he spotted that local coins had a face value less than the value of the silver from which they were made. So he bought every coin he could, melted them down and pocketed the difference. “I don’t believe in not taking opportunities,” he said, according to his unofficial biographer, Hamish McDonald.
Published in 1998, the book is still not available in Indian bookshops because the Ambanis have threatened legal action for anything they perceive as defamatory in the book.
But, truth to be told, it took a lot more than just opportunity to turn Reliance into a Rs 75,000-crore (Rs 750-billion) colossus by the time Dhirubhai passed away in 2002. It took a rare kind of genius to succeed where so many others have tried and failed.
Humble Beginnings
Dhirubhai, born on 28 December, 1932, was the the third son of a school teacher in Gujarat. No one could have imagined then that the student of Junagadh’s Bahadur Kanji High School – who stopped studying after the tenth standard to join his elder brother, Ramniklal in Aden – would one day claim a rightful place among the richest men in the world.
In 1957, Dhirubhai arrived in Mumbai after spending 8 years in Aden (Yemen), he had only Rs 500 in his pocket. Now Rs 500 wasn’t a pricely sum even back then but it had value and it allowed Dhirubhai to take his first steps in the world of business.
By 1958, when he started his first small trading venture, his family used to reside in a one room apartment at Jaihind Estate in Bhuleshwar. After trading in a range of products, primarily spices and fabrics, for eight years, Dhirubhai managed to become the owner of a small spinning mill at Naroda, near Ahmedabad. This was a turning point for him.
Blast Off
TRIVIA
By 1976-77, Reliance had an annual turnover of Rs 70 crore (Rs 700 million). For many that would have been enough. But Dhirubhai was just getting started.
In 1977, Reliance Industries went public and raised equity capital from 58,000 investors, many of them located in small towns. From then onwards, Dhirubhai started extensively promoting his company’s textile brand name, Vimal. The story goes that on one particular day, the Reliance group chairman inaugurated the retail outlets of as many as 100 franchises.
But the deal-breaker in the eyes of his critics was how he managed to cultivate favours among the politicians. Indira Gandhi returned to power in the 1980 general elections and Dhirubhai shared a platform with the then prime minister of India at a victory rally. He had also allegedly become very close to the then finance minister Pranab Mukherjee, not to mention the prime minister’s principal aide R.K. Dhawan.
Negotiating Success
If you want to succeed in business, especially in India, your networking skills need to be simply superb. You need to have the right contacts to push your projects through and Dhirubhai had them.
His admirers say that Ambani’s success came down to his financial acumen, innovations in marketing and technology, and project ex*****on skills. But his critics will say that the consummate skills with which he could win friends and influence people were just as criticial. They say, that is what allowed him to bend and twist the license-permit system to his advantage.
As Dhirubhai once said: “We cannot change our rulers, but we can change the way they rule us.”