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Initially itself Reliance had around 58,000 investors, small or big from all across the country but mostly from Gujrat. Dhirubahi can be credited for bringing the equity culture amongst Indian public. The success of reliance attracted many more investors and the annual meetings of the company were held in Stadiums. In 1986, Ambani’s net worth was estimated to be around 1 Billion. Such a fast growth he had in such a short span of time.
Ambani’s life has been portrayed in a famous Bollywood movie “Guru”. Most of the part is based on truth just like the character played by Mr. Mithun Chakraborty. He portrays a former friend and then a hard-core critic of Dhirubhai Ambani, Mr. Ramnath Goenka. He used to publish articles against Reliance Industry everyday in his newspaper, The Indian express. But Dhirubhai never succumbed to criticism. He continued his great Entrepreneurial spirit and Reliance flourished year by year.
The biggest controversial incidents involving Mr. Dhirubhai was the one in 1982 when a group of stock brokers termed as “Friends of Reliance” outplayed a bear cartel from Kolkata and made profits at Stock market.
The matter, in a nutshell, was like a group of stock brokers sold the shares of reliance and promised the delivery at a future date hoping that the price at the future date would fall and they would make profits in short selling of shares. But they dint knew whom they were dealing with. Mr. Dhirubhai appointed another group of stock brokers who was purchasing those shares and never let the price go down. On the final day, the Bull cartel was in trouble and had to buy the share and pay a penalty of Rs. 2 per share. The incident shot up the share price of Reliance to Rs. 180 from Rs. 150 in minutes. The bull cartel had to buy shares at a higher price and add a penalty to it and then give it to the other group of brokers favoring reliance.
It is said that those shares also were provided by Mr. Dhirubhai himself. He surely made a lot of money that day using his wittiness and intelligence. To investigate this whole incident the market was closed for three working days and government made an official statement describing the events in detail. Such was the hold of this legend on the market that he made all wonder that how can a simple textile owner can topple the whole national market. It’s all in the vision!!!
TRAFO (Travel Forever):Hotel Reviews in 60 Words from the Best Travel Bloggers around the Globe. Download Now!
The matter, in a nutshell, was like a group of stock brokers sold the shares of reliance and promised the delivery at a future date hoping that the price at the future date would fall and they would make profits in short selling of shares. But they dint knew whom they were dealing with. Mr. Dhirubhai appointed another group of stock brokers who was purchasing those shares and never let the price go down. On the final day, the Bull cartel was in trouble and had to buy the share and pay a penalty of Rs. 2 per share. The incident shot up the share price of Reliance to Rs. 180 from Rs. 150 in minutes. The bull cartel had to buy shares at a higher price and add a penalty to it and then give it to the other group of brokers favoring reliance.
It is said that those shares also were provided by Mr. Dhirubhai himself. He surely made a lot of money that day using his wittiness and intelligence. To investigate this whole incident the market was closed for three working days and government made an official statement describing the events in detail. Such was the hold of this legend on the market that he made all wonder that how can a simple textile owner can topple the whole national market. It’s all in the vision!!!
TRAFO (Travel Forever):Hotel Reviews in 60 Words from the Best Travel Bloggers around the Globe. Download Now!
In addition to this incident Mr. Dhirubhai was criticized of meddling in the government policies and molding them to his advantage. He even had differences with Mr. V.P. Singh, the former PM of India. But, he outlasted them all and emerged as the most successful Businessman of the country. I think what all he did for continuing his business was correct and he did it not only for himself but for many others whom he was responsible for, his employees. If he paid off government to favor Reliance, I think, he did so because the officials themselves were corrupt and saw an opportunity to extract money from this businessman’s pocket. He did everything possible for his company’s survival. May be, many of my readers must be having some different opinion on this.
Whatever, be the opinions on the life of Mr. Dhirubhai Ambani he was no doubt a life saver for millions of Indians. He has generated millions of jobs in the country and today Reliance is the biggest enterprise in the country. Thanks to the daring and risk-taking ability of this legendry entrepreneur.
Thanks!!
What a man! I am a huge fan of him. I don't really care if he might have been against the law.
ReplyDeleteI admire players ( I mean people who have the balls to challenge the convention and take the risk to achieve the impossible ) and Dhirubhai Ambani is eternal symbol of inspiration.
True. He had the guts to go off the conventional path of setting up a business laid down by the bureaucracy. He can be credited of bringing in the economic liberalization in the country.
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