Dhirubhai’s industrial empire

(At the time of his death)
To correctly assess the business-industrial empire of Dhirubhai Ambani it is imperative to keep in mind the earlier state at the time of start. He was just a matriculate, so he could not boast of academic asset. For the capital he had what he had saved in his service tenure at Aden. He had only Rs. 50,000 and dreams of building up industrial empire of limitless worth. It was like building Himalayas out of a mole hill. He inherited no fortune. Infact the economic state of his family could afford to pay for his education. That was the scenario when he began his endeavour and died having become the lord of India’s largest industrial empire. The following data tells the story of his legacy for your assessment.
Financial Figures
(Of four months before his demise)
Total worth of business Rs. 60,000 crores
Net Profit Rs. 4,650 crores
Worth of total assets Rs. 55,500 crores
Details of (Then) immovable assets
● World’s biggest Paragelene plant having 1.4 million ton annual production capacity—the third largest actual producer in the world.
● Purified Teriptholic Acid plant with a capacity of more that one million tons a year output—fourth in the world list.
● 25 oil and gas production/exploration blocks spread over an area of 1,75,000 kms.
● Polypropelene Unit having a million ton per year production capacity. Sixth in the world ranking in actual output.
● 26% share holding in Reliance Telecom venture that has 1/3 share in total operations in India in basic and cellular services.
● 45% share holding in then proposed plan for setting up of Reliance Infocom. Entry with 5 billion Dollars for expansion of voice and data services with establishment of tele-communication network at national level.
Share assets of reliance group
● 27% stock in Utility sector of BSES Limited.
● 30% Joint Venture stock with Oil and Natural Gas Corporation and Bharat Group.
● 64% Stock holding in Reliance Petrolium Refinery—capacity 7 million tons a year. Fifth on the world list in capacity to produce petrolium products.
Comparative study of share holdings
● At that time Reliance (RIL) had in excess of 3.5 million share holders.
● In Reliance Industries Ambanis had 40% share, founding investors 32% and other share holders had 24%
● In Reliance Petrolium Reliance Group had 64% share, Investment Institutions had 13% and other share holders 23%
Some other facts
● Reliance Group had a number of projects. Following were founded by Dhirubhai Ambani during his own life time:
● Petrochemicals
● Synthetic Fibres
● Fibre Intermediate
● Textiles
● Oil & Gas
● Commercial Service Group
● Refining & Marketing
● Power Sector
● Insurance Business
● Telecom Sector
● Infocom Sector

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