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Rise of a legend: The Story of Dhirubhai Ambani



The date was 6 July 2002.The place was  Breach Candy Hospital,Mumbai.People started gathering from all around world to meet their friend,partner,mentor and a great entrepreneur in Indian history.

Politicians,Film stars,Businessmen started gathering at hospital to say final good bye. The legend was none other then Dhirubhai Ambani who was suffering due to second stork. He was founder and chairman of Reliance Group of Industries.The company that worth ‎₹2,960 billion (US$44 billion).

The Journey of business tycoon Dhirubhai Ambani is inspirational and very useful for today's generation. So,without wasting time any more let's see the Struggle of polyester prince Dhirubhai.

Dhirajlal Hirachand "Dhirubhai" Ambani was born to Gujarati Modh Vanik family to Hirachand Govardhandas Ambani and Jamanaben in Chorwad,Junagadh.His father was school teacher  who teaches in Goverment school of Chorwad.

Family Condition of Dhirubhai is not so good.He was Raised in frugal living conditions.his family have to suffer insufficiency because of his fathers low income.

Dhirubhai was average on academics. But he always has leadership quality. During his school days he was elected as General secretary(GS) of The Junagadh state union. he was also part of Praja Mandal Movement  that organized rallies to oppose Nawab's(head of the state,Junagadh) decision of joining Pakistan.

In 1949, the new party emerges form Congress takes part in municipal elections.he was also part of that party.he started campaigning his favorite candidate that results in victory of those candidates.he was offered a good place in that party but Dhirubhai declined to choose his beloved way "Business".

Due to ill health of his father and condition of his family.he quit the study and take of a job offered in Aden the city in Yemen.

He started his job at A. Besse & Co as a clark,because of the curiosity to learn tricks of trading he started working on Gujarati trading firm simultaneously where he learns about banking and Accounting.

He came to India at 1958 and started exploring business opportunities in Bombay.since, he couldn't make large investment he started small spice trading business under name  Reliance Commercial Corporations.

Then he shifted to Yarn trading which involves more risk as well as more investment.The trading mantra of Dhirubhai Ambani was "Low Profit,High Volume and Rich Quality" due to his full dedication and sharp mind he made very good deals in yarn market and elected as director of the Bombay Yarn Merchants Association.

With his ability of business and skills soon he cracked two big deals which help him for starting his own text tile mill in Naroda,Ahemdabad in 1966 named As "Vimal".

In January 1967, His mill started manufacturing rich quality nylon but at that days whole sellers refused to buy nylon from newly established companies instead of well established brands.But motto of dhirubhai is clear that he want to be no. 1 businessman in India he started selling and marketing nylon himself on street and started selling to direct retailers.

This unique idea of him worked like charm and "Vimal" became the well established brand of nylon market.Because of increasing in demand he started expanding his mill,machinery and technology.
Soon the Reliance family grew large and prosperous with influx of a whole new gamut of fresh and experienced workers.

Soon Dhirubhai started expanding their business in various fields like Reliance power,Relience Industries,Communication and many more.

According to published Article at Wikipedia. Ambani take control over whole stock exchange of india the details of whole incident are given below:

Extensive marketing of the brand in the interiors of India made it a household name. Franchise retail outlets were started and they used to sell "only Vimal" brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance Textiles' Manufacturing unit.

In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures. It was rumored that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, The Bear Cartel, a group of stock brokers from Calcutta, started to short sell the shares of Reliance.
To counter this, a group of stock brokers until recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange.

The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in the Bombay Stock Exchange. The bulls kept buying and a price of ₹ 152 per share was maintained until the day of settlement. 

On the day of settlement, the Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares. To complete the transaction, the much money was provided to the stock brokers who had bought shares of Reliance, by Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an Unbadla, or penalty sum, of ₹ 35 per share. With this, the demand increased and the shares of Reliance shot above ₹ 180 in minutes. The settlement caused an enormous uproar in the market.[citation needed]
To find a solution to this situation, the Bombay Stock Exchange was closed for three business days.

Authorities from the Bombay Stock Exchange (BSE) intervened in the matter and brought down the "Unbadla" rate to ₹ 2 with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.

After this incident, many questions were raised by his detractors and the press. Not many people were able to understand as to how a yarn trader until a few years ago was able to get in such a huge amount of cash flow during a crisis period. The answer to this was provided by the then finance minister, Pranab Mukherjee in the Parliament. He informed the house that a Non-Resident Indian had invested up to ₹ 220 million in Reliance during 1982–83.

These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in Isle of Man. The interesting factor was that all the promoters or owners of these companies had a common surname Shah. An investigation by the Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters.
 

On 24 june,2002, Dhirubhai Ambani was admitted to the Breach Candy Hospital he suffered a major stroke. It was his second stroke, the first one had occurred in February 1986 and had paralyzed his right hand. He was in a coma for more than a week and a number of doctors were consulted. He died on 6 July 2002.

He always says that:


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