history:
’’I see myself as a pathfinder. I love to be the first in whatever I’ve findeth to do. Money doesn’t impress me, though I’ve to make it for my shareholders; what impresses me is achievement. In this room, extra-ordinary things must happen!’’-Words of the legendary entreprenuer, Dhirajlal Hirachand Ambani, who revolutionised the way India Inc. works!
Borned in 1932 to Jamnaben and Hirachand Govardhandas Ambani, he was from a poor middle-class family of Chorwad, a town of the Saurashtra territory of Gujarat (India). Could not attend even junior college and knew not a bit about the field of which later on he was to be called ’Badshah’.
Dhirubhai, as he was known to his 5 million shareholders, moved to Aden as a teenager in order to seek his fortune. He started work as a petrol station attendant before taking up a clerical position for an oil company that was the sole distributor of Shell products there. While in Aden, home to many Gujarati expatriates, he realised that a discrepancy between the rial-sterling exchange rate and the intrinsic value of the silver content in Aden?s coinage afforded an excellent opportunity to make money. This arbitrage generated some $3, 000 in seed money for the modest trading enterprise that Ambani set up when he returned to Bombay in 1958.
The trading house Reliance Commercial Corporation began by importing polyester yarn and exporting spices. This was the era of India?s infamous ?licence-permit raj?, when businessmen with political connections could corner export, import and manufacturing licences and accumulate huge fortunes.
Sensing an opportunity in textiles, he opened his first textile mill in Naroda, near Ahmedabad, in 1966 and then concentrated on quietly building up his business. Vimal, the textile brand he established, flourished and remains a household name in India today. He named this brand after the name of his elder brother’s elder son, Vimal.
Reliance, the company which was set up with an initial investment of 15, 000 Rs. (approx. $ 375), went public in 1977, but the final phase of Reliance’s diversification occurred in the 1990s when the company turned aggressively towards petrochemicals and telecommunications.
Dhirubhai Ambani died in Bombay on July 6, 2002, aged 69, but Reliance still continues to grow even better and further fulfilling the dreams which he saw while working in that petrol-pump of Aden. his two American educated sons, Mukesh and Anil, have been in-charge of the company from the days Dhirubhai was suffering from heart strokes. His legendary quote ’Where there is growth, there’s life!’ has become company’s punch line today.
Reliance as it is today:
India’s largest private sector company and the only to be listed in Fortune 500 Global Best Companies.
The Reliance group is India’s largest business group, in terms of all major financial parameters, including sales, exports, profits, net worth, assets, and market capitalisation. The Reliance group’s financial highlights are:
Sales of Rs. 59, 548 crores (US$ 12.8 billion)
Exports of Rs. 9, 370 crores (US$ 2 billion)
Operating Profit (PBDIT) of Rs. 9, 377 crores (US$ 2 billion)
Cash Profit of Rs. 6, 552 crores (US$ 1.4 billion)
Net Profit of Rs. 4, 222 crores (US$ 0.9 billion)
Net Worth of Rs. 25, 682 crores (US$ 5.5 billion)
Total Assets of Rs. 54, 896 crores (US$ 11.8 billion)
Market Capitalisation of Rs. 64, 912 crores (US$ 13.8 billion)
Reliance’s contribution to the Indian economy:
The Reliance group’s leadership position in India is reflected in its all round contribution to the Indian economy.
Reliance contributes:
over 3% of India’s GDP
approximately 5% of India’s total exports
nearly 10% of the central government’s indirect tax revenues
Work Culture:
I can’t comment much on it as I’ve not worked with Reliance myself, but as some people whom I know quoted over different time:
’They will pay you 20, 000 and will get the work done back from you which worths 2 lakh Rs.!’
’I once saw a senior executive been slapped by his senior.....!’
’It’s a nice environment here, good brand name, worth working.’
’I like working here, but they don’t pay you just like that. You’ll have to work like nobody.’
Conclude:
’’Think big, think fast, think ahead!’’, thus spoke the late Dhirubhai Ambani, founder of the Reliance Group.
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