India is a land that has produced several heroes, including warriors, soldiers, leaders, actors, martyrs, sportsmen and business tycoons. One such person who changed the face of India and reached the stars is Dhirubhai Ambani. Born in a small Gujarati family with modest means, Ambani’s rise to fame and his constant endeavours to reach the top are nothing less than a narrative, rags to riches story!
1. Who is Dhirubhai Ambani?
You may have heard about Mukesh and Anil Ambani. But do you know that these two business tycoons are actually sons of magnate Dhirubhai Ambani? Well, it was Dhirubhai who founded the current enterprises Reliance Industries, a conglomerate that operates in several segments such as exploration, refining, retail stores, telecommunications and petrochemicals. But Dhirubhai Ambani wasn’t a born rich man with a silver spoon in his mouth. In fact, as a third son of a school teacher, he didn’t even have enough money to fulfil his basic necessities. So, how did he manage to grow and thrive?
Early Life and Humble Beginnings
Born on December 28, 1932, in Chorwad, Gujarat, Dhirubhai Ambani grew up in a modest family. His father was a school teacher, and financial constraints were a constant challenge. Despite these hardships, Ambani exhibited an entrepreneurial spirit from a young age, selling snacks to pilgrims and showcasing a knack for business.
2. From Gujarat to Yemen
It is true that Ambani lived in moderate means, but that didn’t hinder him from dreaming high. At the tender age of 16, Dhirubhai went to Aden in Yemen to earn. The boy with dreamy eyes began his career as a dispatch clerk and soon, with his hard work and skills managed to become a distributor for Shell Products. But he wasn’t just a hard worker, he was a smart worker!
This experience provided him with valuable insights into international trade and commerce.
3. Melting coins to silver
While working at Yemen he realized that the London Stock Exchange had high demand for Rial, the Yemen coins that had high content of silver during those days. Therefore, Ambani acted smartly and purchased those coins in bulk. Later he melted them in silver and sold it to gold traders. And guess what, even though he did this for a few months, he ended up with lakhs of rupees, which was and still quite a big amount for an average Indian. But he wasn’t content. His dreams weren’t yet fulfilled.
4. Founding of Reliance Commercial Corporation
The young boy, who started with rags and little means, had a few lakhs in his pocket when he came back to India after 10 years.
Return to India
In 1958, Ambani returned to India and established Reliance Commercial Corporation in Mumbai, focusing on importing polyester yarn and exporting spices. He used 15000 INR as capital to establish Reliance Commercial Company in Mumbai. Operating from a small office, he emphasized high-quality products and customer satisfaction, laying the foundation for Reliance’s future success.
Expansion into Textiles
Then in 1964, he started with Reliance Textiles, produced and sold polyester cloth under brand name ‘Vimal’, named after his nephew. Because of his constant urge to maintain high quality standards, Vimal was applauded as the best polyester clothing brand. Dhirubhai Ambani had begun to fly high!
5. Public Offering and Capital Market Revolution
In 1977, Reliance Textile Industries went public, attracting over 58,000 investors. Ambani’s transparent business practices and focus on shareholder value earned him the title of the ‘father of India’s capital markets.’
6. Diversification and Backward Integration
Ambani pursued a strategy of backward integration, expanding Reliance’s operations into petrochemicals, refining, and oil exploration. This approach ensured control over the entire supply chain, enhancing efficiency and profitability.
7. Legacy and Recognition
Dhirubhai Ambani’s contributions were recognized with numerous accolades, including the Padma Vibhushan in 2016. His legacy continues through Reliance Industries, a conglomerate with interests in telecommunications, retail, and energy, under the leadership of his sons, Mukesh Ambani and Anil Ambani.
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