Anil Ambani – A Riches To Rags Story Of A Series Of Wrong Business Decisions1

1. Anil Ambani – A Riches To Rags Story Of A Series Of Wrong Business Decisions INSIGHTS: • Anil’s dependence on debt as a source of capital was the main reason for his downfall. • A discussion of his plans with other important people on board his company would have saved Anil from taking wrong decisions. • Anil’s impatient behavior and not being able to stick to any business for a longer period was one of the reasons for not being able to continue in the billionaires club. • The services provided to him became unviable as he uses to over-leverage himself by taking loans from his connections. • A lack of focus in one business and unrelated diversification led to a series of failures.• Anil was being aggressive about business expansion which required huge capital and yet he did not plan and was not focused. • An investment in the sector about which

2. he had no prior knowledge, lead to Anil’s failures. The Background of Anil Ambani Anil Ambani is the younger son of Late Dhirubhai Ambani, the founder of the Reliance Industry. He is the chairman of Reliance Group and the owner of many companies which include Reliance Communication and Reliance Power. In 2008, the Reliance power unit of Anil was the fastest subscribed IPO in the Indian capital market. Anil joined the business earlier than his elder brother Mukesh Ambani. After graduating from Wharton School, Anil joined his father’s business as a Co CEO. He took his father’s company to a new height by raising $2 Billion from the global market and acing in the petrochemical, power, communication, and textile industry. Anil was also elected as an independent member of the Rajya Sabha in the year 2004. He married Tina Ambani, who was a famous actress in the Bollywood industry back in the ’90s. The Split of the Reliance Industries Dhirubhai Ambani, the father of Mukesh and Anil, passed in 2002 due to a massive stroke without leaving a will for his sons. Mukesh became the chairman while Anil, the managing director. The brother continued to handle their father’s legacy for three years and made Reliance, The largest manufacturer in India of raw materials for the textile industry. In 2005, the brother fought for power in their Firm due to which Kokilaben, Mother of Mukesh, and Anil stepped in and made an agreement according to which Mukesh got the oil and gas, petrochemicals, refining, and manufacturing industries whereas the junior Ambani became the chairman of Reliance ADA Group and owned the stock listed companies comprising Reliance Infrastructure, Reliance Capital, Reliance Communications and Reliance Power.There was an agreement in which the two brothers decided that they would not compete with each other and will not enter as a rival to their brother’s respective industries. Related Article: 4 Things You Didn’t Know About The Ambani Successor – Anant Ambani The Presumptuous Ambitions of Junior Ambani • Anil was considered to be more ostentatious and media-savvy than his elder brother, Mukesh Ambani. He used to telecast every product his Telcom business launched, in the news. You can read the full content: https://www.businessupside.in/anil-ambani-a-riches-to-rags-story-of-a-series-of- wrong-business-decisions/ -------------------------- Business Upside Email ID: support@businessupside.com Phone No.: +1-425-605-0775 Visit Us: https://www.businessupside.com/ Stay Connected Via: https://www.facebook.com/businessupside https://www.youtube.com/channel/UCuSkeS5oU- B2tRIBDYntmaw https://twitter.com/BusinessUpside1