Dhirubhai Ambani

Dhirajlal Hirachand "Dhirubhai" Ambani
Dhirajlal Hirachand "Dhirubhai" Ambani
Born	Template:Birth date; Chorwad, Gujarat, India
Died	July 6, 2002 (aged 69)
Occupation(s)	Entrepreneur, Industrialist
Known for	Founder of Reliance Industries

Dhirajlal Hirachand "Dhirubhai" Ambani (28 December 1932 – 6 July 2002) was a prominent Indian entrepreneur who established Reliance Industries in 1958 and took it public in 1977. In recognition of his impact on trade and industry, he received the Padma Vibhushan, India's second-highest civilian award, posthumously in 2016. Throughout his career, Ambani was instrumental in expanding Reliance into a leading conglomerate, despite facing allegations related to market manipulation, tax evasion, and cronyism.

Early career

Born on 28 December 1932 in Chorwad, Gujarat, Dhirubhai Ambani was the son of Hirachand Gordhanbhai Ambani, a village schoolteacher belonging to the Modh vaniya community. He attended Bahadur Khanji school before returning from Aden in 1958 to venture into the Indian textile industry. It is reported that he initially earned a living as a petrol vendor.

Founding of Reliance Industries

Upon his return to India, Ambani partnered with his second cousin Champaklal Damani to launch "Majin," a business focused on importing polyester yarn and exporting spices to Yemen. The first office of Reliance Commercial Corporation was situated in a modest 350 square foot space in Masjid Bunder, Mumbai, staffed initially by only two assistants.

During this time, Ambani resided with his family in a two-bedroom apartment located in Bhuleshwar, Mumbai. The partnership with Damani ended in 1965 due to conflicting business strategies, after which Ambani continued the enterprise independently.

Allegation of market manipulation

In 1988, Reliance came under investigation during a rights issue involving partly convertible debentures amid suspicions of stock price manipulation. The Bear Cartel, comprising brokers based in Calcutta, engaged in short selling Reliance shares. In retaliation, a group known as "Friends of Reliance" purchased these shares on the Bombay Stock Exchange (BSE).

To address the situation, the BSE halted trading for three days and intervened by reducing the "Unbadla" rate to ₹2, compelling the Bear Cartel to promptly deliver shares. Consequently, the cartel repurchased shares at elevated prices; sources suggest that Dhirubhai Ambani supplied these shares and profited from this transaction.

This incident prompted scrutiny regarding Reliance’s financial position during the episode. Finance Minister Pranab Mukherjee disclosed that Non-Resident Indians had invested ₹220 million in Reliance during 1982–83 via companies registered in the Isle of Man. An inquiry conducted by the Reserve Bank of India found no unlawful conduct by Reliance or its promoters.

Death

On 24 June 2002, Ambani was admitted to Breach Candy Hospital in Mumbai following a severe stroke—his second since 1986, which had previously caused paralysis of his right hand. He remained unconscious for over a week before passing away on 6 July 2002 at the age of 69.

Post death

After suffering his initial stroke in 1986, Ambani delegated control of Reliance to his sons, Mukesh and Anil. In 2004, Mukesh acknowledged ownership disputes with Anil but characterized them as private matters.

Following Dhirubhai Ambani’s demise, the conglomerate divided into Reliance Industries Limited, led by Mukesh as CEO, and Reliance Anil Dhirubhai Ambani Group, chaired by Anil.

By 2017, Reliance had grown to employ more than 250,000 individuals. In 2012, Reliance Industries was among only two Indian firms included in the Fortune 500 list ranked by revenue.

In popular media

In 1988, Hamish McDonald authored an unauthorized biography of Dhirubhai Ambani, titled The Polyester Prince, which chronicled his political influence and entrepreneurial milestones. Due to legal pressure from the Ambani family, the book was not released in India. Nevertheless, a revised edition named Ambani and Sons was published in 2010 without facing legal obstacles.

The 2007 Bollywood movie Guru, directed by Mani Ratnam, draws loose inspiration from Ambani's life story. Although Ratnam has denied that the film is a direct portrayal, he mentioned that it reflects the "spirit of the character."

Accolades

On 15 June 1998, Dhirubhai Ambani became the first Indian to receive the Dean's Medal from the Wharton School of the University of Pennsylvania, honoring exceptional leadership.
In January 2016, he was posthumously honored with the Padma Vibhushan, India's second-highest civilian award.

Bibliography

External links

Founder Chairman, Reliance
McDonald, Hamish (July 15, 2002). "Remembering the Prince of Polyester". Time.