Mukesh Ambani – Chairman of Reliance Industries Limited: Exploring the Key Areas of His Success
Mukesh Ambani’s name is often synonymous with success and greatness in India. With a net worth of USD 66.5 billion according to the Bloomberg Billionaires Index, Ambani has been relentlessly transforming his conglomerate, Reliance Industries Limited (RIL) in the last couple of decades into a global conglomerate that has been written about in many books and studies and has become an example of Indian business excellence. In this article we explore some of the key areas that have enabled Mukesh Ambani to become one of the most successful businessmen in India and globally.
Biography and Early Years
Mukesh Ambani was born in 1957 in Aden, Yemen, and was the oldest son of the late Dhirubhai Ambani, a famous Gujarati entrepreneur who founded and created the Reliance empire. Mukesh’s grandfather, Chimanbhai, was a teacher and his grandmother, Jamnaben, was a homemaker. His siblings include two brothers, Anil, Nina, and Deepti. During his childhood, Mukesh lived in the sprawling capital city of Bombay (now known as Mumbai).
When Dhirubhai founded RIL in 1966, he made sure that his sons, Mukesh and Anil, were given responsible positions and associated closely with the company’s operations. After a formal education in chemical engineering from the prestigious Indian Institute of Technology Bombay, Mukesh started working at RIL in 1981. He then rose quickly to upper management and was made a full-fledged Partner in the enterprise. It can be said that even before becoming Chairman of the company, Mukesh had begun contributing to its growth, consequently playing a major role in the exponential increase in its growth trajectory post the death of Dhirubhai in 2002.
Focus on Technology and Digitalization
Mukesh Ambani is often credited with leading RIL’s foray into data technology and digital business. Under his leadership, RIL has been aggressive in its acquisitions of data technology and equipment. This has enabled the company to become a key player in the nation’s budding digital economy. In 2014, RIL made history when it acquired a majority stake in Network18 Media, a news media and entertainment firm, for INR 4,000 crores.
Under Mukesh’s watch, RIL also established Jio, India’s first and largest 4G LTE mobile network. It thus became the second-largest mobile operator worldwide with a customer base of over 360 million. This has enabled the company to capture a significant share of the Indian mobile market and position itself as the leader in digital and technology-driven businesses.
Diversification of Products
Mukesh Ambani firmly believes that a company’s business portfolio needs to be diversified in order to maintain its growth and stay ahead of the competition. This is why he has aggressively invested in areas of energy, petrochemicals and retail.
In order to maintain its leadership in the energy sector, Mukesh Ambani also focused on organic growth, spearheading major projects such as KG-D6, the Jamnagar oil refinery, and the Jamnagar petrochemicals complex. In 2014, RIL made a major step forward when it announced its intention to invest USD 12 billion in the petrochemicals sector. This was followed by an additional USD 8.5 billion announced in 2018, making RIL the leader of India’s petrochemicals market.
In retail, Ambani led the launch of Reliance Retail in 2006. This has enabled the company to become a key player in India’s retail sector with 1,780 stores and 500 outlets as of December 2020. This has made RIL India’s largest and fastest-growing retail chain.
In addition to retail and petrochemicals, RIL under the leadership of Mukesh Ambani also ventured into new areas, such as financial services and media. In 2019, RIL acquired a majority stake in Future Group companies, a diversified group of companies involved in the FMCG business.
Philanthropic Activities
Involved in several philanthropic activities along with his wife Nita Ambani, Mukesh Ambani has contributed significantly to the development of India. As part of their philanthropic activities, the Ambani’s have donated large amounts of money to fund medical, education and other charitable initiatives. In 2012, the Ambani family donated ₹45 crores to the relief efforts of the Uttarakhand floods. In 2018, they also committed to donate ₹500 crores to help build a library in memory of Dhirubhai.
The Rockefeller Foundation and Reliance Foundation both have partnered to provide better healthcare access to over 1 Billion people living in India. Mukesh also serves as an advisor to the Eisenhower Fellowship Programme, in which 30 high-potential leaders are chosen annually to receive cutting-edge leadership training.
Mukesh Ambani epitomizes success and is an inspiration to many. His vision and leadership have enabled RIL to become a highly diversified and successful company, engaging in new areas of business such as digital and technology, media, retail, and petrochemicals. His philanthropic endeavours have touched millions of lives in India and serve as a reminder of his commitment to social good. It is highly likely that he will lead and expand the vast Reliance empire for years to come.
