Dhirubhai Ambani

Dhirajlal Hirachand "Dhirubhai" Ambani was a prominent Indian businessman. He founded Reliance Industries in 1958. This company eventually became one of the largest in the world. In 2012, Reliance was ranked among the top 100 companies in the Fortune 500 list. This list tracks the world's largest companies by revenue. By 2017, the company employed more than 250,000 people. Ambani's work had a massive impact on Indian trade and industry.

Ambani's early life began in Chorwad, Gujarat. He was born on 28 December 1932. His father, Hirachand Gordhanbhai Ambani, was a village school teacher. Ambani studied at Bahadur Khanji school. Before starting his own business, he worked in Aden. He held a job as a petrol vendor at a gas station. In 1958, he returned to India to enter the textile market. He initially started a business called "Majin" with his cousin, Champaklal Damani.

The early days of his business were very modest. The first office for the Reliance Commercial Corporation was a single room. It was located on Narsinatha Street in Masjid Bunder. The office contained only one table, three chairs, and a telephone. Ambani and his family lived in a two-bedroom apartment in Mumbai. Majin focused on importing polyester yarn and exporting spices to Yemen. In 1965, Ambani and Damani ended their partnership. They reportedly had different temperaments and views on business. Ambani then began working entirely on his own.

Ambani grew Reliance into a massive enterprise. He took the company public in 1977. This allowed the general public to buy shares in the company. However, his success was often accompanied by controversy. In 1988, Reliance faced a crisis regarding a rights issue. This involved partly convertible debentures, which are a type of financial instrument. A group of brokers called "The Bear Cartel" tried to short sell the shares. Short selling is a way to bet that a stock price will fall. To counter this, a group known as the "Friends of Reliance" bought the shares. The Bombay Stock Exchange even closed for three business days to resolve the situation.

There were many questions about how Ambani managed such large cash flows. In 1982 and 1983, a Non-Resident Indian invested up to 220 million in Reliance. The Finance Minister, Pranab Mukherjee, informed Parliament that these funds were routed through companies like Crocodile, Lota, and Fiasco. These companies were registered in the Isle of Man. While many critics raised concerns about market manipulation and cronyism, an investigation by the Reserve Bank of India found no illegal acts. This shows how complex and debated his business methods were.

Ambani's health declined in his later years. He suffered a stroke in February 1986. This event paralyzed his right hand. He passed away on 6 July 2002, at the age of 69. He had been in a coma for over a week following a major stroke. After his 1986 stroke, he had already begun handing control to his sons, Mukesh and Anil. Following his death, the business group was split. Mukesh Ambani led Reliance Industries Limited as the CEO. Anil Ambani led the Reliance Anil Dhirubhai Ambani Group as the chairperson.

Despite the controversies, Ambani received several high honors. He was the first Indian to receive the Dean's Medal from the Wharton School. This award recognizes outstanding leadership. In 2016, he was posthumously awarded the Padma Vibhushan. This is India's second-highest civilian honor. It was presented to his widow, Kokilaben Ambani, at Rashtrapati Bhavan. His life has also been reflected in popular culture. An unauthorized biography titled "The Polyester Prince" was written by Hamish McDonald. Additionally, the Bollywood movie "Guru" is said to draw its essence from his life story.