From Bhajias to Reliance – Dhirubhai Ambani

From Bhajias to Reliance – Dhirubhai Ambani

Basic English

Dhirajlal Hirachand Amban Introduction

 

Dhirajlal Hirachand Ambani, popularly known as Dhirubhai Ambani (28 December 1932 – 6 July 2002) was a successful Indian business tycoon who founded Reliance Industries. Ambani took Reliance public in 1977 and was worth US$ 2.9 Billion in 2002 upon his death. In 2016, he was honoured posthumously (after the death of the originator) with the Padma Vibhushan, India's second-highest civilian honour for his contributions to trade and industry.

 

Born                                    Dhirajlal Hirachand Ambani

                                             28 December 1932

     ChorwadJunagadh StateBritish India
     (present-day Gujarat, India)

 

Died                                     July 6, 2002 (aged 69)

      MumbaiMaharashtra, India

Nationality                         Indian

 

Occupation                        Founder of Reliance Industries (RIL)
     Founder of Reliance CapitalReliance Infrastructure & Reliance Power 

     (Which were later carved out)

Awards                               Padma Vibhushan (2016)

 

From Bhajias to Reliance – Dhirubhai Ambani Theme

 

Dhiru Bhai Ambani the Founder Chairman of Reliance Group India's largest private sector company. Created an equity cult in Indian capital market in late seventies. He is regarded as an icon for enterprise in India. A man far ahead of his times, he epitomized the dauntless (fearless) entrepreneurial (taking of financial risks in the hope of profit) spirit ‘dare to dream and learn to excel’. He dared to dream on a scale unimaginable before in Indian industry.

 

Reliance is the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group.

 

Basic English

From Bhajias to Reliance: Dhirubhai Ambani Summary

Dhirubhai Ambani built India’s largest private sector company worth of sixty billion dollars by 2007 and created the cult of equity subscription in the Indian capital market, harnessing the trust and savings of small investors. The Reliance Group, which he founded, is the Indian company to win international acclaim. In just 25 years, he transformed his company into global corporate group, a wealth creator whose turnover now reportedly weighs in at nearly three percent of India’s GDP. His exemplary life reminds us a classic story “ From rags-to-riches”.

 

Dhirubhai Ambani was born on December 28, 1932 at Chorwad, Gujarat to a school teacher. The young Dhirubhai reportedly began his entrepreneurial career by selling bhajias to pilgrims at the holy place of Mount Girnar in Gujarat on weekends and holidays. After completing his high school education at the age of sixteen, Ambani left his village and family and went to Aden, Yemen, in search of a living.

 

He worked there as a gas station attendant and then a dispatch clerk for A. Besse & Co. Eventually he was promoted to maintain and manage the company’s oil filling station port in Aden. After nearly ten years stay in Yemen Ambani returned to India in 1958 with fifty thousand rupees with the ambition to start business of his own. Initially Ambani founded a company with two assistants to help him that imported and exported spices.

 

Over the time, the company expanded to import and export rayon and nylon, which earned him profits. This venture initiated him to start textile business. He set up his own textile-manufacturing unit in Naroda, Ahmedabad. Later he founded Reliance Industries.

 

Dhirubhai Ambani successfully built Reliance India Limited (RIL) from scratch. He is credited with shaping India’s equity culture, attracting millions of investors into the share- market until then it was dominated by Financial Institutions. He single-handedly revolutionized capital markets. Started from scratch, he generated billions of rupees in wealth for those who put trust in his companies.

 

Under the tenure of Dhirubhai Ambani, Reliance Industries became the first private sector company to hold its annual meetings inside a stadium. He had the ability to convince people to become shareholders and in 1986, as many as 3,50,000 shareholders, who attended the annual General Body Meeting. Over the passage of time, his business diversified from textiles to a core specialization in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail business, infrastructure services, capital markets and logistics.

 

 

 

Reliance became the first Indian company to raise money in global markets, its high credited rating in international markets limited only by India sovereign rating. Reliance also became the first Indian company to feature in the prestigious Forbes 500 list.

The Federation of Indian Chambers of Commerce and Industry (FICCI) honoured Dhirubhai Ambani as the ‘Indian entrepreneur of the 20th century’. A public opinion poll conducted by The Times of India in 2000 voted him ‘the greatest creator of wealth in India in the 20th Century’. He said of his entrepreneurship, “Think big, think fast, and think ahead. Ideas are no one’s monopoly.” He died on July 6th, 2002 at Mumbai.

 

Basic English

From Bhajias to Reliance – Dhirubhai Ambani Explanation

One of the greatest Industrialists as well greatest Indian tycoons in Indian history, Dhirajlal Hirachand Dhirubhai Ambani’s success story will continue to inspire the coming generations. He was born on December 28, in the year 1932. at Chorwad, Gujarat, into a Modh family. His father was a school teacher.

He was a mature and intelligent boy. He would prefer to work rather than attend school lessons. Once when his mother asked him if would help his father earn money he replied to her saying “Why do you keep screaming for money? I will make heaps of money one day.

 

Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends and in his village fairs to make ends meet at home. Ambani completed his matriculation at the age of 16 and moved to Aden now it is Yemen. At the age of 17 to hunt for some jobs and soon, he started working as a gas-station attendant for a salary of Rs 200 per month. And he also worked as a clerk in an oil company.

 

This was the time period which brought about an idea in his mind to set up an oil refinery in India. Certainly, he had no idea that he was going to change the face of Indian oil refinery. He once bought a tin of groundnut oil on credit from a local wholesaler and sold the oil in retail on the roadside. The little profit he received after selling that oil in retail gave him great elation he started doing many little things to earn a living for his family. The way he’s risen against all the odds and a ttained immortality in his field is something everybody should take notice and stand up and applaud (app/laud).

He had nothing when he started off his trip to Yemen, but by the time he came back, he had an idea in his mind, which he materialised with great amount of hard work. With a net worth of around $60 Billion, He returned to India in 1958 with Rs 50,000 and set up a textile trading company in Ahmednagar, along with his cousin, Champaklal Damani Though his businesses were a huge success, there were also issues regarding Ambani’s control over stock exchange.

The founder of Reliance Industries started with Rs 50,000 and two assistants. In just three decades, the combined fortune of the family was over 60 billion USD. He passed away on July 6, 2002 in Mumbai. The first office of the Reliance group was set up in a 350-square-foot room with one table, three chairs and a telephone initially; Ambani had only two assistants to help him

It is said that Ambani used to export goods like spices and rayon at a loss, but also used to import nylon, earning a profit of approximately 300 per cent Under the tenure of Dhirubhai Ambani, Reliance Industries became the first private sector company to hold its annual meetings inside stadiums. He had the ability to convince people to become shareholders and in 1986, as many as 350,000 shareholders attended the Annual General Meeting in Cross Maidan. Dhirubhai later expanded his business into petrochemicals, telecommunications, information technology, energy, retail, capital markets, power, textiles, etc

 

A Hindi film Guru, directed by Mani Ratnam, is said to be inspired by his life

His awards include the ABLF Global Asian Award, Man of the Century award by Chemtech Foundation and Chemical Engineering World, the most powerful people in Asia by Asiaweek magazine, the "Dean's Medal" by Wharton School, Economic Times Awards for Corporate Excellence for Lifetime Achievement, the "Man of 20th Century" title by the Federation of Indian Chambers of Commerce and Industry (FICCI) and "Greatest Creator of Wealth in the Centuries" by the Times of India.

What happened later after he set up Reliance industries is something we all know, but his humble beginnings are something all aspiring entrepreneurs should know. He under stud that business is nothing but the job of networking with people and considered it as web of relationships and obligations. In addition to that he was a simple man who made simple ideas into big business ventures. His named his first textile brand “VIMAL” which was the name of his brother’s son and converted it into a household name for clothes (Dhirubhai Ambani – End of an era, 2009).

He always believed in ‘actions speak louder than words’ and during his life he responded to all sorts of sniping criticism with silence (Krishnamurthy, 2006). He believed that if one had the determination and willingness to work, one could do wonders in business as long as the integrity and honesty was maintained. He never cared for what the world or society had to say so long as he was convinced that the idea would work.

Now we know the Ambanis as the richest family in this beautiful country and they all owe a huge debt of gratitude to Dhirubhai Ambani.  Today Reliance Group of Industries has assets valuing over 60 billion dollars with annual profits of over 45 billion dollars (Thakurta, 2003). It has now actively expanded into exploration and production of oil and gas, to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals, synthetic textiles, fabrics, communication, energy, infrastructure entertainment, media and telecommunication (Tripathi, 2004).

After the death of Dhirubhai in 2002, the company is being effectively managed by his two sons, Mukesh and Anil Ambani.

Conclusion

Dhirubhai Ambani, was an Indian Entrepreneur who reformed the thought process of doing business in India. He inspired people to beat the system rather than be in the system if one's dreams asked for it. Dhirubhai believed said “Only when you dream it you can do it” and to “Think big, think fast, think ahead.

He always believed in ‘actions speak louder than words’ and during his life he responded to all sorts of sniping criticism with silence (Krishnamurthy, 2006). He believed that if one had the determination and willingness to work, one could do wonders in business as long as the integrity and honesty was maintained.

 

 

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