Business management guru

What Dhirubhai Ambani achieved as an entrepreneur with big dreams and his talent to realise those dreams puzzled the economists and management skill creators. How could a man with little education, no degree from any institute, no traning in entrepreneurship and without backing from financial institutions was able to raise the biggest industrial empire of India? It was a worthy subject of research. Even foreign ecomonic experts and analysts found hard to believe or explain. How could a matriculate Dhirubhai create in himself such resourcefulness and capacity to make gigantic plans and dare to successfully execute them. I too as a greatly curious researcher wanted to find out. So, I have studied his life deeply and researched on the economic policies articulated by Dhirubhai.
The secrets of success

• Dhirubhai Ambani had several amazing inborn natural talents and extraordinary courage to be extremely ambitious. Even while he was studying he used to do some minor trading by hawking to help the family financially. He sold to tourists and pilgrims small packs of edible items. He had no hesitation in doing small work to help his family. Dhirubhai did it on his own without anyone ordering him to do.
  Dhirubhai had interest in education but he was no academic genius. An average student he was. From the very early age he was business minded. Perhaps he could not concertrate his mind on books. The financial problems of the family had put pressure on his mind which sharpened up his natural business talents as his only intellectual asset that could make difference to his life. Every person is the product of the environment he lived in. This geographic fact applies to mind as well. The environment of the family creates one’s mindset. Here in Dhirubhai’s case he understood that he would have to work to earn money. And earn money a way that should bring honour and glory along side. The money was not be his end goal but a ladder to greatness. That was the most important distinction that made him India’s greatest industrialist. The feeling of pride he felt at beholding his gigantic structure of Jamnagar refinery complex was the real thing for him and the money it earned was incidental. His philosophy and statements made it amply clear.
  It was this mindset built in him in his early years that took him to Aden at the age of mere 17 years when generally a teenager does not wish to go away from home. Only an irrepressible desire or ambition can wean away a youngman from the emotional security of his home. May be, another reason of his going aborad to work was that in Indian social situation labour was not respected. There he started work as a pertrol station attendent without any fear of being treated as a lowly human.
• The feeling of being an alien in a foreign land inspired him to work hard and move up. There he has little social duties to attend to. The work is his only occupation. Earning promotions and some money was essential before returning home. Back home he must show to others that he had achieved something for the sake of self respect. That urgency took him up the ladder to the post of General Marketing Manager of the employer company. During that period he had become a father. Mukesh had arrived. He had already started seeing dreams and weaving his future plans.
• After working for 9 years for the Burma Shell in Aden Dhirubhai Ambani quit to return to India. No one without bigger dreams to realise could have thrown away a lucrative job in a foreign land. But Dhirubhai had plans to earn him glory and honour through money route. He did not want to be only a money grubber like the Jewish owner of the Aden Company. For him money would be only means to create spectacular edifices of endeavour to put him on the pedastal reserved only for great ones of the land of his birth. He had already worked out his business dreams and ground prepared while he was in service there. He had surveyed the local Aden market and studied the items he could export from India that would form the starting operation of his endeavours. He had worked out understandings with his future business partners in import-export trade he had in mind. In 1959 he returned to India to set up his base and arrange for the finances. Then he was only 25 years old youngman.
• Dhirubhai returned to India with his savings of Rs. 50,000 only. But in 1959 it was a tidy sum, having at least 80 times the purchasing power than today. It was the capital for his dreams.
• Back in India, Dhirubhai preferred to base himself in Mumbai (Bombay) the financial capital of India and the gateway of exports and imports. He did not go to Ahmedabad because Mumbai better suited in business scheme of things. He was not an emotional fool but a hard nosed businessman who knew which place served his purpose better. He was a down right practical man who made carefully calculated moves.
• In Mumbai he moved in a room of the flat of his brother. He could have rented a flat of his own but it was imperative for him to save the capital he had. He could not fritter it away for self pride. A little inconvenience did not matter. It later showed how he valued the savings of others as well when he fought the share market battle to protect the savings of his small investors. His wife faithfully co-operated with him. Dhirubhai started his venture ‘Reliance Trading Commercial’ from Masjid Bandar. He exported spices and textile he already had strucks deal with Aden importers. But later, the demand for other items came and he complied with. He would not disappoint his customers. Once a Sheikh wanted Indian soil because he thought that his favourite flower, rose better prospered in it. Dhirubhai did not raise questions or object to the bizarre order but he faithfully supplied the special soil. He respected his customers/consumers and believed in serving them without questioning their demand or choice. It also proved how he kept his doors and mind open to new possibilities.
• Dhirubhai had started Reliance Trading Co. with only Rs. 15,000. He had saved the 35,000 for contingency or as reserve capital which shows his farsightedness and preparedness to meet emergency situations without having to run around seeking help.
• Inspite of starting on small scale he did not lose sight of his big dreams. The business undertaken was a preamble of the epic industrial saga the script of which was being taking shape in his mind. Only seven years later he set up his Naroda mill to begin with ‘Only Vimal’ dream start. That was the take off of his dream projects.
• The proof of his high thinking and skillful management came to light in 1975. His Naroda taxtile mill was inspected by a technical management team of World Bank. It gave Dhirubhai’s venture a certificate for being world standard erterprise. He was not merely a dreamer but a man of management and technical skills. In the decade of 1980 he kept his venture going by selling synthetic fibres. Then he was manufacturing it. In the mean time he had become father of three more children. Thus, he was very active on all fronts. He had started Naroda mill with only 70 workers and in a matter of decade became a name for the manufacturer of quality fabrics.
• Success breeds confidence and after gaining reasonable freedom and security one dares to take risks. So it happened in the case of Dhirubhai. In 1977 he came out with his first public issue and an era of financial equity culture began in India. Till then no one had envisaged it. Dhirubhai was an economic pioneer and a man of versatile talents. He was an innovator and explorer of business world. That is why his voyager ship sighted the shore of verdant small savings island of middle class Indians. His first issue (Rs. 10 a share) was oversubscribed several times. The economic press of the land was critical of his public issue. To counter the adverse publicity he effectively used mass media and silenced the detractors.
• In the earlier half of 1978 Dhirubhai introduced a special brand of Vimal textiles in the market. It proved a roaring success. Dhirubhai got his due entry in to Indian corporate world through his brand. Only Vimal was a sort of textile revolution and it became the first choice of consumers.
• Till the arrival of Dhirubhai the Indian economy moved at the pace of snail. It did not suit the fast thinking of Dhirubhai. Liberal policies were yet far away. In an unfavourable economic policy barricaded set up he used the loophole routes and marchad on. He upset the apple cart of establish industrial tradition and taught new lessons to the business world. Dhirubhai was up against established industrial houses. The press groups and some prominent journalists were spewing fire at him. Dhiruhbhai did not lose patience and his detractors lost their faces when success became his crown and further success feathers adorned his crown.
• One special quality of Dhirubhai was that he never let down his faithfuls. On the lines of Netaji Subhash (Give me your blood I will give you freedom) Dhirubhai said to the investors and his consumers ‘Give me your trust and I will gain you profits.’ He kept his promise. In response to his public issue of 1977 those who bought Reliance shares and debentures got back returnes of one hundred times of their investments.
• In 1980 Dhirubhai came out with second public issue to raise capital for a new worsted textile mill which the investors subscribed in no time. The middle class small investors had full faith in Dhirubhai. Then, he started Patalganga project which was Rs. 110 crores Fibres Complex. It paved the way of massive expansion of Reliance Group. Dhirubhai executed one project after another as if possessed by some restless spirit. He could not wait to see his new ideas at work. Setting up of 100 retail shops of Vimal brand was his innovative idea.
• By that point of time Dhirubhai had come to realise that in India there was peculiar relationship and equation between the industry and politics of the land. The politicians needed election funds and money for their parties. The industrialists needed political push to overcome hurdles of licence permit regimes. Dhirubhai thought there was nothing unethical in cosying up with select politicians. During the period of 1980 and about he had already become a big name in the industry. Dhirubhai could no more be ignorged. Indira Gandhi had reutrned to power in 1980 general elections. Dhirubhai got a grand stage prepared for her in Gujarat for her grand reception after victory rally. It was his farsightedness. All the industrialists were seeking patronage of the political powers. So, what wrong Dhirubhai did? But he was subjected to some governmental harassing through taxation departments when V.P. Singh became Prime Minister after the defeat of Congress under Rajiv Gandhi.
• Then there were conspiracies hatched against Dhirubhai Ambani by jealous rivals using a share-market syndicate.An vicious effort was made to destroy the market value of his Reliance Group in the BSE (Bombay Stock Exchange) through manipulation. Reliance share value had crashed. But Dhirubhai upstaged the enemies by buying Reliance shares that a conspiring Bear Syndicate was unloading. A friendly broker group was raised to do the job. The Reliance shares rose again to reach a new height.
• Dhirubhai consequently faced accusations. The charge was that he had bought his own shares through a bogus company. It was the year of 1983. An investigation followed but Dhirubhai emerged unscathed.
• 1985 was the year of anxieties for Dherubhai. His brother-in-law L. Meswani passed away. There were some other family troubles as well. A corporate war with Nusli Wadia broke out. Some decisions of finance minister V.P. Singh caused his industrial group some grave losses.
• 1986 was the worst year for Dhirubhai. He faced health problems. They say trouble never comes alone. He suffered a paralytic attack and he lost the use of one hand. Profit of his group fell. His projects faced several hurdles.
• 1987 provided some relief to Dhirubhai. Mukesh and Anil had taken over the charge of most of his enterprises. They were doing good job. At Patalganga Polyester Staple Fibre (PSF) and Purified Tereptholic Acid (PTA) plants were set up. One year later, Patalganga units started production of chemicals and fibre intermediates. They were Dhirubhai’s ambitious projects.
• The production of chemicals and fibre intermediates was an important step towards making his industrial house self sufficient in allied inputs for manufacture of its end products. In the same year Dhirubhai Ambani got the management control of public sector giant Larsen & Tubro. It greatly added to his stature. 1988 saw Reliance Petro Group public issue launched in the market. Dhirubhai was greatly successful in capital raising. He had earned a great faith of investors. This time 2 million investors applied for the issue. Dhirubhai did not disappoint his share and debenture holders. He paid handsome returns. That further built up his trust amongst his investors for whom Dhirubhai was a man with Midas touch. But in 1989 Patalganga Reliance Plant suffered severe damage from floods.
• Then, in 1990 during the reign of V.P. Singh political hostility against Dhirubhai showed up. He realised that he would not be able to retain hold on the chairmanship of L&T. Anticipating trouble he himself resigned in 1990 from that post. But the glee of his detractors was shortlived. The very next year he commissioned first plant of Rs. 9000 crores Hajira Project. The detractors and rivals bit their lips.
• The financial equity culture founder, Dhirubhai Ambani launched fresh public issue in 1992 to raise a capital of Rs. 325 crores to realise his two new dream projects namely Reliance Polypropelene Ltd and Reliance Polythylene. As always the investors backed him to the hilt with great enthusiasm. India was then two years into liberalised economic policies. Reliance Group had become world famous name. To make this international recognition into a real grand affair he started a campaign to raise capital in the international markets. He did it successfully. And Reliance became India’s first company to accomplish it in the history of Indian companies. Through its high credit rating (GDR) it raised and made money. After India’s Sovereign Rating the Reliance was then second on GDR. It amazed even his rivals. Dhirubhai’s enemies now were forced to have a rethink on their anti-Dhiru attitude. Dhirubhai did not offer any explanation. Only his achievements were mocking at his detractors. Many of his opponents turned his admirers during that period. His incredibly big thinking had become a halo around his personality.
• 1993 was a year of achievements for Dhirubhai Ambani. He had undertaken the distribution business of Plastics and PVC. It was a success. In the same year he came out with public issue of the Reliance Petrochemicals. Again the investors put their trust in him as before. The third good news of the year was that his industrial house crossed the sales figure of Rs. 4000 crores.
• Now Dhirubhai concentrated his attention on Hajira Petrochemicals. He knew that the coming age will be that of petrochemical products. He decided to raise the output. In 1994 plan to increase the output capacity of Hajira Petrochemicals to six million metric tons a year was started. Then its capacity was only two million metric tons. The aim was to triple it. In 1995 bogus share scandal episode broke out and it was investigated. But all these scandals could not stop Dhirubhai earning a greater fame on the international scene. In 1996 his Reliance Group figured in more international lists as the premier company of India and one of the big ones of the world. To those lists no Indian private company had made it before. It dazzled the economic reviewers. Dhirubhai did what Tata and Birla could not do.
• In 1997 Dhirubhai succeeded in realising one more dream. Under the Reliance Industries flag Dhirubhai started world’s biggest Multi-feed Petrochemicals Canker at Hajira. It startled the industrialists world over. But Dhirubhai did not utter a world about his achievement because for him there were more industrial frontiers to cross. He was exerting all his present energies in creating industrial records. There was no time for him to gloat over. For the current project he did not need any outside financial support. That was also a sort of record. The third endeavour of Dhirubhai for the year was the start of cellular services. It was completely a new field for him but he never hesitated in exploring new fields and experimenting. Dhirubhai had correctly assessed the limitless opportunities in cellular service in the near future. While entering the field of communications he believed that in near future cellular service (mobiles) could be as cheap as a postcard which would usher in a revolution. At that time he sounded like a crazy person or some arrogant industrialist making tall claims. But today we see that SMS costs cheaper than a postcard. Dhirubhai could think ahead of time like a dreaming scientist-cum-industrial forecaster. That was what separated him from others.
• 1998 was a rich year for Dhirubhai Ambani. His industrial assets crossed the worth of
  Rs. 35,000 crores and output also touched the figure of 14,000 crores plus. It was achieved in mere 32 years of endeavouring. He really was an industrial magician.
• For Dhirubhai expansion had no limits. Setting up new records had become a synonym of Dhirubhai. In 1999 befitting his grand personality in his Jamnagar complex, the world’s biggest refinery was commissioned. This incredible achievement amazed even his detractors.
• 2000 was again a year of achievements. Dhirubhai Ambani announced his new projects namely Reliance Infocom, Reliance Telecom and Reliance Communications. Dhirubhai was now in modern communi-cations sector in a big way. Till then other companies had monopoly in that sector and they felt secure. The announcement of Dhirubhai was a jolt to them. That year the worth of Dhirubhai’s industrial assets crossed Rs. 50,000 crores figure and the earnings went above the figure of Rs. 20,000 crores.
• In 2001 Reliance Group became India’s biggest Industrial house. Dhirubhai as an industrialist was now officially Number One. But Dhirubhai’s time was running out. In the same year Realince Life Sciences was instituted.
• In 2002 P.P.L. and R.I.L. wer amalgamated. In the same year the government undertaking IPCC was aquired by Reliance Group. It was a big deal. No one else could have thought it was possible.
  

But life is short. Still shorter is the life of the industrious people because they use up every second of their time. One who has come must go. God had already given signal to him through paralytic attack that his time was coming to an end. Dhirubhai had realised all the dreams he had seen and achieved the impossible goals. He had won honours and laurels. On June 24, 2002 Dhirubhai suffered heart and brain strokes. He went into ‘coma’. For 13 days he struggled for life. On July 6, 2002 at 11.30 p.m. Dhirubhai departed for his heavenly abode. It was a sad news for the people and the nation.
He had gone but left behind massive industrial complexes as his monuments that will always remind the people of that enterprising genius who was a part of economic revolution of India. His leagacy is prospering in the hands of his capable sons and their families.