Hi
friend, in this blog we are going to discuss about Dhirubhai Ambani. Dhirubhai Ambani was born in Gujarat
in 1932. He was never interested in formal education and left after passing the
tenth standard. He moved to Yemen for work in 1948. Here, he put his entrepreneurial
skills to the test when he realised that the intrinsic value of the silver
coins used in those days was much higher than the monetary value of the coin.
He made a lot of money by melting down silver coins and selling it as pure
silver.
In 1958, he moved back
to India to try his hand at the textile business. Here, he started the Reliance
Commercial Corporation in a small 350 square feet room with one table, three
chairs and one telephone. Initially, the company was focussed on the trade of polyester
and spices. Later on, he started focussing more on textiles. It was during this
time that he launched the brand Only Vimal which sold materials for sarees,
shawls, suits, etc.
Dhirubhai was a gifted
businessman and he grew the Only Vimal brand immensely. His main superpower was
the ability to convince people. He was passionate, committed and had a solid
business plan. To top it off, he was a gifted speaker. Using this ability, he
launched a successful IPO for Reliance in 1977-78. In fact, the IPO was so
successful that it was oversubscribed sevenfold.
Once he gained success
in the textile industry, Dhirubhai set his sights onwards and upwards. In 1985,
he changed the name of the company from Reliance Textiles Industries to
Reliance Industries. From here on, he started expanding the business and
entering into other sectors.
In 1991-92, Reliance
entered the petrochemical and refinery business. It soon established itself as
a major player in this field not just in India, but also globally. It was the first
private sector company in India to be rated by international credit rating
agencies. In 1995-96, Reliance entered the telecom business with the launch of
Reliance Telecom Private Limited.
One of the main reasons
why Dhirubhai was so successful was the fact that he focused on quality and
gave it more important than profit. He wanted to honour the promise he made to
his shareholders and ensured that the businesses he built were all based on
strong and stable foundations. In fact, his son Mukesh Ambani subscribes to the
same principle.
Dhirubhai knew that he
wanted his company to be trustworthy and honourable. In order to reward his
shareholders, he ensured that the company declared regular dividends. Not only
that, but he also held annual meetings for all his shareholders so that they
may create a closer and a more personal relationship with the company.
In fact, when the
Reliance IPO was launched, the annual revenue of the company was in the region
of Rs. 70 crores. In 2002, when Dhirubhai passed away, the annual revenue of
the company was over Rs. 75 thousand crores. Reliance was the first Indian
company to be included in the Fortune 500 companies list.
After his death, the company was divided between his two sons, Mukesh and Anil.
