When we speak of billionaires in India, the first name that comes into our mind is Ambani. Mukesh Dhirubhai Ambani is the torchbearer of evolving India and is often listed among the likes of Jeff Bezos and Elon Musk. In this blog, we will narrate the Mukesh Ambani Success story—a story that continues to inspire many entrepreneurs to date.
Mukesh Dhirubhai Ambani is the chairman and managing director (CMD) of Reliance Industries. He is the eldest son of Dhirubhai Ambani. Reliance is a Fortune 500 company and one of the world’s largest private-sector conglomerates and Mukesh owns 48% of its stake. In this blog, we have divided our narration of the ‘Mukesh Ambani success story’ as per 3 crucial phases of his life.
Pre-Reliance: Early life and Education (1957-1981)
Mukesh was born in the Colony of Aden, on April 19, 1957. His father Dhirubhai Ambani, a well-known Indian icon, then worked as a petrol station attendant. In 1975, Dhirubhai Ambani successfully launched his textile firm under the Vimal name after relocating to India.
Meanwhile, Mukesh graduated from Mumbai’s Institute of Chemical Technology as a Chemical Engineer. He further enrolled in Stanford University’s MBA program, however, dropped out in 1980.
Establishment of Reliance (1981-2007)
In 1981, Mukesh dropped out of college to help his father develop the PFY business. Reliance’s backward integration from textiles to polyester fibers, petrochemicals, petroleum refining, and upstream to oil and gas exploration and production emerged as a result of this. In 1986, he founded the current Reliance Communications constrained.
Mukesh took over the reins and duties of Reliance Industries Limited and also played a key role in expanding the company globally. He developed one of the world’s largest and most complicated information and communications technology endeavors, Reliance Infocomm Limited, which is currently known as Reliance Communications Limited.
In Jamnagar, India, he supervised and oversaw the development of the world’s largest grassroots petroleum refinery, with a current capacity of 660,000 barrels per day (33 million tonnes per year) and integrated petrochemicals, power generation, port, and related infrastructure. Instead of investing in offshore acquisitions, Mukesh Ambani constructed greenfield assets that generate 20% returns on investment rather than succumbing to corporate fads or political pressure.
Rift between Brothers
In (2002), Dhirubhai Ambani died without leaving a will which complicated the relationship between the brothers. Therefore, their mother decided that it was time for the company’s assets to be divided equally between the two brothers.
In the split, Mukesh received companies in the oil and gas, refining, and petrochemical industries. Anil was given the rising sun companies, which included the electricity, telecommunications, and financial services sectors. Anil Ambani, after his split with Mukesh in 2006, founded the Reliance Anil Dhirubhai Ambani Group (ADAG), which competed with Mukesh.
Anil received certain companies that Mukesh had worked hard to build and which had a better growth rate, which was a blow to Mukesh. Mukesh couldn’t even work in these fields because the split agreement included a non-compete clause. Mukesh saw the 2008 financial crisis as an opportunity to get rid of the clause.
Mukesh Ambani Success Story: The Jio Era (2007)
The turning point of Mukesh Ambani’s success story was in 2007, when a fast surge in the Indian stock market and the strengthening of the Indian rupee raised the market capitalization of Reliance group companies, briefly making him the richest man on the planet. He became the first Indian to visit US President Barack Obama less than a month after taking office.
In 2016, Mukesh eventually launched Jio with 4G which offered the industry’s lowest prices. Mukesh took advantage of the industry by offering competitive and beneficial offers. Meanwhile, other players have had to provide their products at reduced margins because of Jio’s success.
Due to the pricing battle which ensued, Anil’s Reliance Communication was quickly wiped out. He was not the only one who was affected as Bharti, Airtel, and other giants quickly realized that Jio conquers. Jio also had vast finances, unlike others in the market, thanks to Reliance’s petrol business. Vodafone and Idea narrowly scraped by, and their fortunes haven’t improved since. It took 25 years for the telecom sectors to construct a 2G network across India while Jio did it in just three years because of Mukesh’s determination and execution.
Restructuring of Reliance (2020)
Mukesh Ambani built Reliance into a conglomerate with operations across India in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Currently, he is experimenting in retail and e-commerce through a collaboration of Jio with Mark Zuckerberg’s WhatsApp. In April 2020, Facebook invested $5.7 billion in Reliance Jio, obtaining a 9.99 percent stake for a $65.95 billion pre-money valuation.
Under Mukesh’s leadership, Reliance became the first Indian company to reach a market capitalization of $100 billion. It is also the most profitable company in India at the moment. For the Indian government, the company manages around 5% of the money produced by Customs and Excise tax. As a result of his growth, Mukesh became Asia’s richest man.
Mukesh Ambani Success Story: His Laurels and Achievements
As of 2022, Mukesh Ambani’s net worth is estimated to be $90.20 Billion and despite being India’s richest man for many years, he has never rested on his laurels and continues to do so. He is also advocating for making Reliance a carbon-free company, although petrochemicals are one of Reliance’s key pillars. Mukesh often quotes: “Data is the new oil,” which shows a shift in his concentration to the tech industry.
Being one of the world’s most revered corporate executives, Mukesh Ambani has garnered many accolades for his leadership talents.
- Dean’s Medal from the University of Pennsylvania’s School of Engineering and Applied Science (2010)
- The United States-India Business Council Leadership Award by the US-India Business Council (2007)
- Chitralekha Person of the Year Award by the Gujarat government (2007)
- World Communication Prize by Total Telecom (2004)
Besides being the president of the multinational empire, Mukesh is also involved in other ventures, including:
- Member of the board of directors of Bank of America Corporation and the international advisory board of the Council on Foreign Relations (2011-2013)
- Chairman of the Indian Institute of Management in Bangalore earlier (IIM-B)(2007-2015)
- Member of the Institute of Chemical Engineers (IChemE) (Institute of Chemical Engineers) as an Honorary Fellow (2010)
Besides his ventures, Mukesh Ambani is also popular for his 27-story Antilia. Located in Mumbai, India, with a building cost of nearly $1 billion, it is considered to be the most expensive residence ever built. Moreover, he also owns the ‘Mumbai Indians team, one of the popular teams in the Indian Premier League (IPL).
Mukesh Ambani is the face of modern Indian industry, offering a vivid picture of a rising, innovative, and urbane Indian commercial sector. He will remain the business guru and hero. of every young Indian who strives to mimic his successes and establish a name for himself in the corporate world. Mukesh Ambani has been recognized as one of the world’s most influential business leaders and has received several awards for his foresight.
In a research conducted by Pricewaterhouse Coopers and published in the Financial Times, he was ranked 42nd among the World’s Most Respected Business Leaders and second among the four Indian CEOs. Besides, he is also a current member of the Council on Foreign Relations’ worldwide warning leading group, as well as a member of the Bank of America Corporation’s governing council.
Mukesh Ambani Success Story: What did we learn?
So, this is how the ‘Mukesh Ambani Success Story’ unfolds. Mukesh Ambani is the face of modern Indian business, and he represents an urbane, developing, and powerful image of the Indian commercial sector.
Despite several setbacks and hardships along the way, Mukesh Ambani remained relentless in his pursuit of achievement. Every aspiring entrepreneur who wants to make it big can learn a lot from Mukesh Ambani’s success story. He is the personality to follow.