AN

ASSIGNMENT ON

STRATEGIC LEADER:

DHIRUBHAI AMBANI

Prepared By: Kunal Panchal M.B.A semester III

Under the Guidance Of Miss: Krishna Gor Faculty: AIM

Submitted to Anand Institute of Management Opp.town hall, Anand

Introduction

Dhirajlal Hirachand Ambani Born Died 28 December 1932, Chorwad, British Raj (now Gujarat, India) Mumbai, Maharashtra 6 July 2002 (aged 69) India Nationality Indian Occupation Business

Magnate Nationality Indian Occupation Business Magnate; Chairman of Reliance Industries Net worth US$ 6.10 billion Religion Hinduism Spouse Kokilaben Ambani Children Mukesh Ambani, Anil Ambani.

Reliance History Dhirubhai Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. Dhirubhai Ambani was born to Hirachand Gordhandhas Ambani and

Jamnaben in a Gujarati family of modest means. Hirachand Gordhandhas Ambani was a village school teacher with little income. Hirachand and Jamanaben had two daughters Trilochanaben and Jasuben and three sons Ramnikbhai, Dhirubhai and Natubhai. Dhirubhai was the second son. Dhirubhai was precocious and highly intelligent. He was also highly impatient of the oppressive grinding mill of the school classroom. He chose work which used his physical ability to the maximum rather than cramming school lessons. When Jamnaben once asked Dhirubhai and Ramnikbhai to help his father by earning money, he angrily replied, Why do you keep screaming for money? I will make heaps of money one day. On weekends, he began setting up onion/potato fries stall at village fairs and made extra money which he gave to his mother. After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company in Ahmedabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes. Sensing a good opportunity in the textile business, Dhirubhai started his first textile mill at Naroda, in Ahmedabad in the year 1966. Textiles were manufactured using polyester fiber yarn. Dhirubhai started the brand "Vimal", which was named after his elder brother Ramaniklal Ambani's son, Vimal Ambani. Extensive marketing of the brand "Vimal" 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. This unit has the rare distinction of being certified as "excellent even by developed country standards" during that period. Dhirubhai Ambani is awarded with starting the equity cult in India. More than 58,000 investors from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to convince large number of small investors from rural Gujarat that being shareholders of his company would be profitable. Reliance Industries was the first private sector company whose Annual General Meetings were held in stadiums. In 1986, The Annual General Meeting of Reliance Industries number of first-time retail investors to invest in Reliance. Ambani's net worth was estimated at about Rs.1 billion by early 1980s.

In 1982 Ambani began the process of backward integration, setting up a plant to manufacture polyester filament yarn. He subsequently diversified into chemicals, petrochemicals, plastics, power. The company as a whole was described by the BBC as "a business empire with an estimated annual turnover of $12bn, and an 85,000-strong workforce". The final phase of Reliances diversification occurred in the 1990s when the company turned aggressively towards petrochemicals and telecommunications. Assisted by his two sons, Mukesh and Anil, Dhirubhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionized capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian company to raise money in global markets, its high credit-taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century". Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June 24, 2002 after he suffered a major stroke. This was his second stroke; the first one had occurred in February 1986 and had kept his right hand paralyzed. He was in a state of coma for more than a week. A battery of doctors were unable to save his life. He died on July 6, 2002, at around 11:50 P.M. (Indian Standard Time).

His funeral procession was not only attended by business people, politicians and celebrities but also by thousands of ordinary people. His elder son, Mukesh Ambani, performed the last rites as per Hindu traditions. He was cremated at the Chandanwadi Crematorium in Mumbai at around 4:30 PM (Indian Standard Time) on July 7, 2002.

Information

Dhirubhai Ambani mastered the secret of gathering information. He had an uncanny knack of knowing exactly how the market is going to behave and stayed ahead of times. He used to gather information, whatever it may be and at whatever cost. He used to gather information about Governments whether they were local, state, central or international. Whenever he went for approval of license from government he used to have all the information about the market capacity, market share, competitors etc. he used to gather information about products, companies, consumers, markets, people, services, politics and practically anything and everything that mattered for that matter. He used to keep up to date information of competitors. He used to gather information, analyzed and process the same. He was also able to identify opportunities out of those news and information. He was also quick to disburse that information to the relevant people.

Intelligence Jamnadas, a friend of Dhirubhai helped him by giving some money to invest in share market when both of them left the job in Aden. Dhirubhai came to India after some years and established his own business. When Jamnadas came to India Dhirubhai gave him job in his company. Even though Jamnadas stopped working after sometime, Dhirubhai insisted that he be paid his salary till his demise. It shows his social intelligence. He was able to understand others emotions and feelings. He never forgot people who helped him. Dhirubhai was very shrewd in his business transactions as well. He had a knack of getting the right information appropriate to the situation and used it to his advantage whenever necessary. He had the ability to solve any problem or deal with any kind of situation at the right time and in the right perspective.

Imagination He always was ahead of the times and was able to predict or forecast future developments correctly. For example, he made the plant capacity of polyester production mill higher than the current market demand at that point of time because he knew that in near future, the demand for polyester would increase. Once he also reserved some stock of yarn in view of expected increase in the market price and this happened, resulting in huge profits. Inspiration He was a very inspirational leader. He inspired a good deal of young entrepreneurs in India. To his employees, he was their messiah whom they could fall back to in any hour of need. For example, when the action of one of his employees resulted in a huge loss, he was magnanimous in condoning the same, for he was very sure that the employee worked for the benefit of his company in the said situation. Insight He had an uncanny insight to the future of his business. His choice of moving on to polyester, especially, at a time when cotton was the more popular fabric was based on his perception that the demand for polyester would pick up very soon and his prophecy was proved right. Converting debt into equity using debentures only highlights his deep insight about his business because by this move, he could clear the companys debts and achieve profits for all the shareholders. Dhirubhai gave importance to the small investor and his contributions, and by doing so, he involved millions of middle class investors Intensity Dhirubhai was intensely attached to his company, its people and its business. All his moves were directed ultimately for the good of his company. His intensity was

that infectious that it spread to all his employees. He was so intensely attached to his company that was prepared to forego his integrity for the sake of getting things done by hook or by crook for the sake of his company. Integrity Dhirubhai seems to stand low in terms of integrity. Dhirubhai manipulated the laws and customs rules to his companys advantage. He exploited the Indian government, their rules and tax system to the best of his ability which is very clear from the fact that Reliance is the only company which never paid taxes even after three decades of listing and went on giving bonuses and dividends to shareholders. It was government and the system which was at loss. Billions of rupees which should have gone to the coffers of government allegedly went into building Reliance Empire and also went for paying bribes to the government babus. Critics accused him of using "more than the usual" ways of obtaining licenses, getting quick approvals for public issues and capital goods imports, and of getting policies formulated in favor of Reliance Industries. However, Dhirubhai used to say that these were baseless allegations made against him by his jealous competitors. Influence Dhirubhai Ambani was known for his influence in political circles and had the ability to acquire most difficult licenses during the license raj. Ambanis influence on New Delhi was so strong that everything worked the way he wanted it to be, whether it was getting a license or taking action against his competitors. Interdependence Dhirubhai depended on the Reliance family consisting of professionals and technocrats drawn by him from all possible quarters who were able to convert his expectations to fruitful results. By depending on them and looking after them simultaneously, he was able to achieve superlative results. This shows that

Dhirubhai believed in team work though, of course, he was always the team leader.

Impact Dhirubhai had a great impact on stock exchanges and on government. He had such an impact that when Govt. and stock exchange experts opposed his idea of converting debentures to shares, he threatened them that if they take any legal action he will withdraw all shares from the stock exchange. Fearing this SEBI never took any action against him, and he forced the government to change the law.

Dhirubhai Management Style

Dhirubhai Management Style

Theory Z

Indian Style (Gujrati)

American Management Style

Japanese Management Style

Indian Management Style (Gujrati)

HIG H

HUMAN TOUCH

L3 SAAM Management By ASSOCOATION L4 BHED Management By DELEGATION

L2 DAAM Management By ATTRACTION L1 DAND Management By DIRECTION

HIG H

LOW

JOB INSECURITY
SATVIC
MOST CAPABLE

RAJASIC

RAJASIC

TAMASI C
LOWEST CAPABLE

FOLLOWERS TYPES GYAN YOGI KARMA YOGI

BHAKTI YOGI BLIN D

VISIONA RY

FOLLOWERSHIP

ACHIEVEMENTS

Title The Economic Times Lifetime Achievement Award

Date 10.08.2001

TNS-Mode Survey - India's Most Admired CEO

26.07.1999

Chemtech Foundation - Man of the Century Award

08.11.2000

FICCI - Indian Entrepreneur of the 20th Century Award

24.03.2000

The Times of India - Dhirubhai Ambani voted "Creator of Wealth" of the Century

08.01.2000

Conclusion He may have died nine years ago, but (Reliance Industries founder) Dhirubhai Ambani is the biggest role model for the Indian youth.

His journey from rags to untold riches has fired millions of dreams. The common man thinks of him as 'one of us' -- a homegrown genius who became a legend in his own lifetime. "If Ambani could do it," ask any young, dreamy-eyed man on the street and he will say, "why can't I?" Businessmen are no longer ashamed to say that Ambani is their idol. His faith in large-scale operations, his ability to spot opportunities in situations that look impossible, makes him the most daring Indian businessman of all times. What others took ages to build, Ambani accomplished in a few short years. There was more to Ambani than just manipulation. He could think out of the box and was generally ahead of the curve.