dhiru - full

7/29/2019 Dhiru - Full

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THEUNDISPUTED

KING OFINDIAN

INDUSTRY


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Who is dhirubhai ambani?

the indian business tycoon

Founder of reliance industry


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Dhirajlal Hirachand

AmbaniThe milestones


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Dhirubhai Ambani

The milestones

1932 - Born in chorwad, Gujarat. 1949 - Age of 17, he went to Aden in Yemen 1958 - Dhirubhai Ambani returned to India &

Started his first company in Mumbai,commodity trading and export house.

1965 - Champaklal Damani and Dhirubhai

Ambani ended their partnership.

1966 - Set up a textile mill in Naroda,


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Dhirubhai Ambani

The milestones

1977- Reliance went Public with I PO 1982 - Ambani began the process ofbackward integration

1986 - Dhirubhai suffers stroke. Anil and

Mukesh catapulted to the hot seat. 1988 - Fi bre intermediates and chemicalproduction started.

1995 1st Indian company to report a net

profit of rs-10 billion.


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TraitsDriveHigh desire for achievement

Highly Ambitious

Revolutionary

IntelligenceQuick Situational Decision

MakingJob Relevant KnowledgeNo prior KnowledgeGreat Desire to learn Desire to

leadInfluentialResponsible

SelfConfidentAbsence of Self Doubt

Convincing

ExtroversionHighly EnergeticCharismatic

Lively

"D

CO


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Achievements

Unlike other corporate houseswho dominated over a periodof time, Dhirubhai Ambani

could achieve within a shortperiod with a razor likesharpness and businessacumen.

Dhirubhai Ambani proved to be

A King in his Diversification.

RIL is now India's largestPrivate Sector with turnoverover US$19.976 billion backed

by a profit over US$2.03billion.

Chemtech and ChemicalEnginering. World gave the"Man of the Century " award inNov 2000 to Dhirubhai Ambani

Dhirubhai won the " Dean'sMedal " of Wharton School,University of Pennsylvania in

June 1998 for " OutstandingLeadership

FICCI conferred the title " Man of20th century " on D.A.in 2000

Times Of India in 2000 votedDhirubhai Ambani as thegreatest creator of wealth inthe country


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Dhirubhai AmbaniA Transformational Leader


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Motivates followers byencouraging them to putgroup interests first.

Each behaviour isdirected to eachindividual to expressconsideration andsupport.

Employees achieveobjectives through

higher ideals andmoral values.

Works tochange the

organisationalculture.

Promotecreative

andinnovative ideas.

Leadership is

proactive.

TransformationalLeadership


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Leader member exchange theoryLMXT

What is LMXT??

LMXT explains how relationships ofleader with each member of thegroup can develop in unique ways.

Two-way relationship betweensupervision and subordinates


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LMXT

Out-Group

In-Group

New

Member

Great Performance

Poor Performation

Leader


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LMXT in Crisis management

1982 Stock Adventure

When things went wrong, Dhirubhaisfirst instinct was always to join hismen in putting out the fire.

In 1982 a calcutta based bearsyndicated sold a large number ofreliance shares hoping to bring theirprices down.

Dhirubhais loyal brokers bought back


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LMXT used in Corporate Battles

VS


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LMXT used in Corporate Battlesheto

ery

out

he


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LMXT used in Political Battle


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Managerial Grid


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Managerial Grid


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When things went wrong he was thefirst person to sense that thecircumstances would have been

beyond his teams control, ratherthan it being a slip on their part.

His first instinct was always to joinhis men in putting out the fire an notcrucifying them for it.


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The yemeni Rial coin had high content ofpure silver in those4 days. Young Dhirubhaipercived high demand for rial in london

stock exchange and purchased them in bulkand melted the coins in silver and sold itbullion traders in london.

GOI introduced High Unit Value Scheme;

hence Dhirubhai shifted his interests fromspices to nylon fabrics


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Dhirubhai Ambani is credited with startingthe equity culture in India.

Dhirubhai identified a new market for his

brand Vimal: the non-metro urbansegment.

Backward integration: to strengthen hi

position in the textile sector, Dhirubhaiintegrates backwards and produced fibres.


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When most business housesdepended on government ownedfinancial institutions for funds

Dhirubhai raised capital from thepublic by offering shares of thecompanies. IPO

Vimal Brand

Reliance cell phone


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Dhirubhai Faced resistance from clothmerchants; so decided to open his ownshowroom for Vimal

Dhirubhai Ambani announced a buy-backscheme when polyester was losing itsdemand.

Whenever a task seemed too big to be

accomplised, he would reply No is noanswer! Its difficult but not impossible!


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Using his connections in Aden, he exported a wide range ofcommodities to Aden.

To Promote Vimal, an advertising campaign was launched,toured the country intensively offering franchises toshareholders.

Cricket world cup 1987 also known as Reliance World cupas it was sponsored by Dhirubhai

Dhirubhai managed to create favourable centers in allimportant areas- among bureaucrats, the politicians as wellas the media. These were the areas where power vested.

Business is nothing but a web of relationships and

obligations.


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Dhirubhai followed the open door policy. Employees couldwalk into his cabin and discuss their problems with him.

He was always inviting people into sharing thoughts andideas rather than shutting out.

Always there for his team and brought around confidence inthem.

Arm-around-the-Shoulder leader

This tendency that he had to draw people towards him

manifested itself in countless ways. Peoples view: That did much more than words in letting

people know that they belonged, that they had trust andthey had him on their side!


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Utilisedopportun

ities inGOI laws

Out ofthe box

approch

Initiationof

debentur

e scheme

RevolutionaryThinking

Exercised

politicalinfluence

Large scalediversifation

Backward

Integration


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Dhirubhaism

He never followed the text book style ofmanagement and evolved a uniquestyle.

A perfect manager of Time, Money, Menand passion to find solution to problems.

Believed that business was not all aboutEthics & morality. It was all aboutExpansion and success.


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After his cremation on the evening of Sunday July 7, his

elder son Mukesh reminded those gathered on the

occasion that in 1957, when Dhirubhai arrived in Mumbai

from Aden in Yemen, he had only Rs 500 in his pocket.

He was not exactly a pauper since Rs 500 meant much

more than what the amount means in this day and age.

Nevertheless, one could not ask for a more spectacular

rags-to-riches tale.

So what is he really, this one-time cloth trader whose group now owns textile

manufacturing companies? A ragged marketeer for Shell in Aden whose sons now

oversee India's largest oil refinery in Jamnagar? A man who ran from pillar to post,

begging for a break, and whose representatives -- solely on account of business interest

-- now part of an unofficial negotiating team to Pakistan at the height of the Kargil war? A

man who almost single-handedly exploded the somnolent share bazaars into freneticactivity, using it as a lever to gain funds and distribute wealth on an epic scale? Dekho,

he will tell you, as his sons will, we're not losers. Failure was never an option.


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Despite his almost Midas Touch, Ambani has

been known to have flexible values and anunethical streak running through him. His

biographer himself has cited some instances of

his unethical behavior when he was just an

ordinary employee at a petrol pump in Dubai. He

has been accused of having manipulatedgovernment policies to suit his own needs, and

has been known to be a king-maker in

government elections . Although most media

sources tend to speak out about business-

politics nexus, the Ambani house has always

enjoyed more protection and shelter from the

media storms that sweep across the country.

The plethora of scandals and


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The plethora of scandals and

controversies surrounding the Reliance

group left Dhirubhais supporters

completely unmoved. His supporters

and there was no dearth of them

would argue that there was no

businessman in India whose track

record was lily-white. Had the textile

tycoon himself not acknowledged once

to Time magazine that he was no

Mother Teresa, they would ask. EvenHamish McDonalds unflattering

portrayal of Dhirubhai in his book The

Polyester Prince published in

Australia by Allen and Unwin and not

available in India acknowledges hisremarkable entrepreneurial talent that

made him one of the few Indians on the

Forbes list of the worlds wealthy and

placed Reliance among the leading 500

companies in the developing worldcompiled by Fortune magazine.


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opoly controls were the lock, licences were the key and corporate India was

e pocket of policymakers. Dhirubhai barged into that league, playing exactly

he established, shadowy rules of the game. Only, he wouldn't toe the line. He

ted the line to toe him. "I had the courage to defy the system," he said, "face

ecution even."

He was a man who aroused extremeresponses in others. Either you lovedhim or you hated him. There was justno way you could have been

indifferent to this amazingentrepreneur who thought big, actedtough, knew how to bend rules orhave rules bent for him.

He was a visionary as well as a manipulator, a

man who communicated with the rich and the

poor with equal felicity, who was generousbeyond the call of duty with those whom he liked

and utterly ruthless with his rivals a man of

many parts, of irreconcilable contrasts and

paradoxes galore.

Quotes by Dhirubhai Ambani


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*"I am deaf to the word "no"."

"Think big, think fast, think ahead. Ideas are no one's

monopoly"

"You do not require an invitation to make profits"

"Meeting the deadlines is not good enough, beating thedeadlines is my expectation

"We bet on people

"We cannot change our Rulers, but we canchange the way they Rule Us

Quotes by Dhirubhai Ambani


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