December 28 marks the birth anniversary of Indian industrialist and founder of Reliance Industries Limited, Dhirubhai Ambani. Dhirajlal Hirachand Ambani is one among those who will always be remembered for their contribution. The late Reliance stalwart was owner of the biggest exporter in the country and his rise to fame by establishing Reliance is an inspiration for many young entrepreneurs.
He was a man with no family fortune or any significant savings, but he went on to become the founder of one of the biggest business houses in India, such is the story of Dhirubhai Ambani.
Birth and younger life
Dhirubhai was born on December 28, 1932 in Chorwad, Gujarat to Hirachand Gordhandhas Ambani, a school teacher. He had three brothers and one sister - Ramanikal Ambani, Saurabh Patel and Trilochana Ben. He attained his primary education from Bahadur Khanji School, and from a very early age, he was known for his leadership qualities.
Dhirubhai ambani in British Colony
Dhirubhai took his first step towards his career when he migrated to the British colony of Aden at the age of 17 and was appointed as a clerk at A. Besse and Company, Suez for a salary of Rs 300 per month. The company in 1950 was considered the largest transcontinental trading firm and it was here that he acquired knowledge about accounting, trading and other businesses. He then returned to India in 1958 with Rs 50,000 to get settled in Bombay, which is now called Mumbai.
Reliance formation
After his return to India, he began a business trading in spices, calling it Reliance Commercial Corporation. Dhirubhai also went on to set up a textile trade. He used the strategy to provide the best quality items at low prices in comparison to his competitors.
Marriage and Family
He at the age of 23 years married Kokilaben Ambani who was 21 in 1955 and had four children - Mukesh Ambani, Anil Ambani, Deepti Salgaocar and Nina Kothari.
Reliance Commercial Corporation to Reliance Industries
In the first few years, he went on to set-up Reliance Commercial Corporation in Narsinatha Street in Masjid Bunder in a 33 square-metre room with a table, landline phone, and three chairs with his cousin Champaklal Damani. He used the strategy to offer high-quality products with low profit margins, which helped him grow his business. In the late 1970s Dhirubhai's net worth was at around Rs 10 lakhs and he also moved to an apartment in Altamount Road in South Mumbai.
In 1965, Dhirubhai separated from Champaklal due to temperamental differences and started his own business. He dealt with the export of polyester and entered the textile industry with a new label, 'Vimal', which was based on his cousin. This new label sold sarees, shawls, suits, and dresses. In 1966 he opened the Reliance Textile mill and gradually built into plastic, magnum petrochemical and power generation mammoth.
The name was then changed to Reliance Industries on May 8, 1973. When the National Banks refused to finance the company in 1977, he made the company public.
Shareholders of Reliance
Dhirubhai had a very strong persona and he was able to convince many rural Gujaratis to become shareholders in the company, because of this Reliance became the first private sector company which had to hold its annual meetings inside the stadium.
In fact, the meetings were so huge that in 1986, approximately 350,000 shareholders attended the Annual General Meeting in Cross Maidan, Mumbai. It was under his leadership that Reliance went on to become the first Indian company to raise money in international markets and be listed on the Forbes 500 list.
He was also a maestro in the stock market and often rallied with the Bombay Stock Exchange.
Anil and Mukesh Ambani take over
In the 1980s, he passed on the ownership of the company to his sons, Anil and Mukesh Ambani. In 1986 Dhirubhai Ambani had his first stroke which left his right hand paralysed. On July 6, 2002, he passed away after having his second major stroke.
Even after his demise, Dhirubhai is still a very strong inspiration and a household name who had one of the sharpest brains in India's entrepreneurial ecosystem.
Surprisingly, he also shares his birthday with Ratan Tata, the Chairman of Tata Sons.
