CHILDHOOD & EARLY LIFE

Dihrubhai Ambani was born in a Modh baniya family to Hirachand Govardhandas Ambani
and Jamanaben in the village of Chorwad in the district of Junagarh. His father was
employed as a school teacher while his mother was a homemaker.

He Raised in frugal living conditions, right from an early age, he was aware of the
insufficiencies that the family dealt with due to the meagre income of his father and large
expenses.

While at school at Junagarh, he was elected as the General Secretary of the Junagarh State
Union. He organized a rally on Indian Independence Day, defying the rules of the Nawab,
head of the state.
Next, he became a part of the Praja Mandal Movement that organized rallies to bring about
constitutional reforms in the state. The result was the fleeing of the Nawab to Pakistan and
Junagarh being a part of the Indian Union. It was his passion and active political involvement
that brought him to the notice of political leaders.
In 1949, a new Socialist party emerged from the Congress of which he found himself a part
of. For the upcoming municipal elections in Junagarh, he started campaigning for his
favourite candidates, which eventually resulted in their victory. Though he was offered a
place in the Party, he declined the offer to walk on road of his true calling.
Leaving aside his political pursuits, he concentrated on academics and gave his
matriculation exams. However, due to the ill health of his father and impoverished living
condition of the family, he had to give up on his education and take up a job offered in Aden.

CAREER REVIEW
At Aden, he took up a clerical job at A. Besse & Co, the largest transcontinental trading firm
east of Suez. The company dealt with trading all sorts of goods to European, American, African
and Asian companies.
His curiosity was to learn the tricks of the trade, So he soon started
working simultaneously for a Gujarati trading firm. It was there that he learnt accounting, book
keeping and preparing shipping papers and documents. He also acquired the skill of dealing with
banks and insurance companies.Soon he took to speculative trading, in all sorts of goods and
made profitable deals, a fact which made his competitors think of him having a knack for trade.
He was then promoted to the oil filling station at the newly built harbour. It was therein that
thoughts of building a refinery first shaped his dream.
Meanwhile, Yemeni movement for independence curtailed opportunities for Indians
living in Aden. Thus, he moved back to India in 1958 and started exploring business
opportunities in Bombay. Since he could not make large investments, he settled as a spice trader
under the name Reliance Commercial Corporations. He soon started trading spices, sugar,
jaggery, betel nuts and such to Gulf Emirates. He focused on low profits, high volumes and rich
quality.
He was not the one to be contented easily; he soon shifted focus to
yarn trading, which though had high levels of risks involved, promised richer dividends as well.
Starting on a small scale, he soon made big deals in yarn to the point of being elected a director
of the Bombay Yarn Merchants Association. His foresightedness and ability to judge helped him
crack two most hefty deals in the yarn market that earned him the flush of capital required for the
future Reliance Textiles. Playing on his idea of establishing a manufacturing unit, he soon
realized the same by setting up a textile mill in Naroda, Ahmedabad in 1966.Every weekend, he
flew from Bombay to Ahmedabad to check on the progress of the establishment of the factory
and troubleshoot any problems faced by the workers. His main aim was to produce the best
quality nylon in the quickest way possible and in largest quantities.He tripled the workforce to
fasten the building of the factory. However, a drop in the valuation of the rupees globally

steepened the project costs. Nevertheless, not the one to get scared to taking risks, he continued
with the project.
By August 1966, the construction work had finished and the
equipment and machineries were being installed to meet the September 1 deadline of starting off
with the productions. Meanwhile, he accumulated a workforce of 35 men from Calcutta, Indore
and Bombay to work in the factory. Production started as planned on September 1, 1966 but took
a couple of months to stabilize.
By January 1967, his dreams started to realize as the Naroda factory began producing
the finest quality of Nylon; but the new company had no buyers in the market as the wholesalers
refused to buy fabric from Reliance at the instance of established big mill owners. Not the one to
accept defeat, he soon stepped out on the road and started selling his stock directly to retailers.
His daring attitude and gutsy behavior impressed all and soon the market for Vimal, the name
of his fabric, grew and started expanding. In no time, it became the finest, best-selling fashion
fabric of its times. The Increasing demand had led to increased sales and greater profits. With the
excess money, he started expanding his mill by adding new machineries and better facilities for
workers. Soon the Reliance family grew large and prosperous with influx of a whole new gamut
of fresh and experienced workers.
By 1972, Reliance became huge and thriving, a stark contrast to its
starting days. Three years later, it received a nod of excellence from the World Bank, a fact that
speeded the upgradation and expansion of all plant operations. In 1981, his elder son Mukesh
joined the business and he initiated Reliance's backward integration journey from textiles into
polyester fibers and further into petrochemicals, petroleum refining and going up-stream into oil
and gas exploration and production
In 1983, his younger son, Anil Ambani joined the business and took over as the
chief executive officer at Naroda.

Between 1984 and 1996, the mill experienced a grand

makeover as computerized and high-tech machines replaced the old traditional ones making
Reliance the grandest composite mill in the country.

Over the period of time, the Reliance industries diversified into other sector,
such as, telecommunications, information technology, energy, power, retail, textiles,
infrastructure services, capital markets, and logistics.
In 1982, Reliance Industries came up against a rights issue regarding partly
convertible debentures. It was rumored that company was making all efforts to ensure that their
stock prices did not slide an inch. Sensing an opportunity, a bear cartel which was a group of
stock brokers from Calcutta started to short sell the shares of Reliance. To counter this, a group
of stock brokers till recently referred to as "Friends of Reliance" started to buy the short sold
shares of Reliance Industries on the Bombay Stock Exchange.
The Bear Cartel was acting on the belief that the Bulls would
be short of cash to complete the transactions and would be ready for settlement under the
"Badla" trading system operative in the Bombay Stock Exchange. The bulls kept on buying and a
price of Rs. 152 per share was maintained till the day of settlement. On the day of settlement, the
Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares. To
complete the transaction, the much needed cash was provided to the stock brokers who had
bought shares of Reliance, by none other than Dhirubhai Ambani. In the case of non-settlement,
the Bulls demanded an "Unbadla" (a penalty sum) of Rs. 35 per share. With this, the demand
increased and the shares of Reliance shot above 180 rupees in minutes. The settlement caused an
enormous uproar in the market.
To find a solution to this situation, the Bombay Stock Exchange was closed for three
business days. Authorities from the Bombay Stock Exchange (BSE) intervened in the matter and
brought down the "Unbadla" rate to Rs. 2 with a stipulation that the Bear Cartel had to deliver
the shares within the next few days. The Bear Cartel bought shares of Reliance from the market
at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares
to the Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.
After this incident, many questions were raised by his detractors and the press.
Not many people were able to understand as to how a yarn trader till a few years ago was able to
get in such a huge amount of cash flow during a crisis period. The answer to this was provided

by the then finance minister, Pranab Mukherjee in the parliament. He informed the house that a
Non-Resident Indian had invested up to Rs. 22 Crore in Reliance during 1982-83. These
investments were routed through many companies like Crocodile and Fiasco. These companies
were primarily registered in Isle of Man. The interesting factor was that all the promoters or
owners of these companies had a common surname Shah. An investigation by the Reserve Bank
of India in the incident did not find any unethical or illegal acts or transactions committed by
Reliance or its promoters.

GURU OF THE EQUITY CULT

Indira Gandhis return to power opened a golden period for Dhirubhai Ambani. In
1979, his company barely made it to the list of Indias 50 biggest companies, measured by annual
sales, profits or assets. By 1984, Reliance was in the largest five. Dhirubhai himself had become
one of the most talked and written about persons in India, gaining a personal following more like
that of a sports or entertainment star than a businessman. It was also the period when Dhirubhai
made the most rapid part of his transition, in the bitter words of a senior non-Congress politician
in 1996, ..From supplicant-the most abject kind of supplicant-to influencer and then to controller
of Indian politics.

Although it was not immediately obvious, Indiras three years in political exile
had reinforced a change in her thinking about state intervention in the economy. In large part due
to the influence of her son Sanjay, who was to die in 1980 when the light aircraft he was piloting
crashed during some acrobatics over New Delhi, she was less trustful of bureaucratic direction,
and more inclined to give the private sector its head. Indian business leaders were also calling for
a drastic relaxation of the license controls on capacity expansion and diversification vested in the
Monopolies and Restrictive Trade Practices Commission. One was the head of the extensive Tata
group, J. R. D. Tata, who along with others in the 1940s had willingly laid their heads on the
block of state planning. By 1981, Tata was calling on New Delhi to unfetter the big business
houses. The intellectual tide had turned in favour of economic liberalization, though it would not

be until a decade later that anything more than tentative policy change was attempted. In Indiras
case, the disillusionment on the economic side was matched.

THINK BIG, THINK FAST AND THIK FAST

Think big, think fast and think ahead. Born in 1932 to a school teacher father in the
small village of Chorwad in western Gujarat state, Ambani followed this advice all his life. He
dreamt big even as a small boy when he used to sell hot snacks to pilgrims outside a temple in
his native village .And he did not stop dreaming big even when he went to Aden as a petrol pump
attendant at the age of 17 to help support his family. It was this desire to make it big in life which
prompted his return to India in 1958. Ambani came to Bombay and started his first company,
Reliance Commercial Corporation, a commodity trading and export house.
The company was set up with an investment of 15,000 rupees (about $375). Fortyfour years later Reliance has grown into a conglomerate with an annual turnover of $13.2bn. It is
the only Indian private sector firm in the Fortune 500 list. In the process, the company has also
acquired one of the world's largest groups of shareholders, with over four million investors
putting their faith in its stock. In 1966 the Reliance group opened its first textile mill in Naroda
in Ahmedabad. The textile mill won accolades in 1975 from a World Bank technical team, who
described it as" excellent by developed country standards". Two years later the company went
public, evoking a tremendous response from investors. That made Ambani something of a
revered figure among the stock investors' fraternity, who held him in awe from then on. They
credit the Reliance chairman with introducing a stock market culture in the country. In the 25
years since it went public Reliance has become more than just a textile industry player.

DHIRUBHAI BECOMING POLYESTER

Dhirubhai came to be known as a dependable and astute person. At times when

he required funds, he approached Gujarati money lenders and traders with the promise of
astounding interests and bonuses. He never failed in keeping his promise, absorbing the losses
and sharing the profits with everyone. When he realized that commodities would not take him
far, Dhirubhai decided to diversify into yarn. Dealing in textiles was a risky business as the
fluctuations in prices were quite high. Dhirubhai, however, learned the tricks of the trade quickly
and realized that there was more money in the business. He borrowed heavily and embarked on a
journey that took him to dizzying heights.
Setting up his first textile mill in Naroda, Ahmedabad was the biggest hurdle of
his life. With other mill owners opposing the sale of Vimal, the polyester brand, Dhirubhai and
his team of highly motivated sales personnel cut through the middlemen (wholesalers) and went
straight to the retailers. The popularity of the fabric and the persuasiveness of Dhirubhai led a
number of retailers to sell "Only Vimal". A sound marketing strategy backed up the product and
all of India was soon wearing textiles that came out of the Reliance factory. He equipped his
factory with the best technology that could scale up with the rise in demand.
The growth of Reliance Industries was unprecedented and of the likes that had
not been imagined until then. Reliance went from a turnover of Rs. 70 crore in the mid-1970s to
being a Rs. 75,000-crore empire in 2002. High finance was one of Dhirubhai's key areas of
success. He raised a great deal of money by issuing six series of convertible debentures and then
converting them to equity shares at a premium. Reliance later diversified into energy, power,
infrastructure services, retail, capital markets, telecommunications, logistics and information
technology. By the time Dhirubhai died, in 2002, his sons Mukesh Ambani and Anil Ambani had
taken over the charge of Reliance Industries Limited and Dhirubhai had become a national hero.

MAJOR WORKS
He was the mastermind, the initiator, conceptualizer and the visualizer behind Reliance
Group. Starting off as a mere yarn dealer, he wrote history by establishing Reliance Industries at
grassroot level and making it the largest business conglomerate in India.
Dhirubhai revolutionized the way capital market functioned by drawing large
amount of retail investors in a market till then dominated by financial institutions. He shaped the
'equity culture' in India and generated billions of rupees in wealth for those who put their trust in
his companies. Reliance was the first Indian company to feature in Forbes 500 list.

Awards & Achievements

For his excellent business acumen and never-say-die spirit which made Reliance
one of the topmost business empires in the country and the world, he was conferred with
numerous honors including Deans Medal, Lifetime Achievement Award for Corporate
Excellence and Man of the Century award. Additionally, he was named Man of 20th Century by
the Federation of Indian Chambers of Commerce and Industry (FICCI).
He was as conferred with the ABLF Global Asian Award at the Asian Business
Leadership Forum Awards. This man from an impoverished Guajarati household built Indias
largest private sector company Reliance Industries.

CONCLUSION :
Taking Dhirubhai Ambani Life Example and by adopting his values we too can too make our
life successful and pay the way of progress. Cooperate world of India will always remain
indebted to the village of person of Gujarat for adding a new dimensions to it and gaining it
global recognition .
I Think If we get 100 of Dhirubhai in India Our Economy will Rule the world .He
was also Great Example of Leading Entrepreneur among all others in the business world. So
India in our Dreams can only be realized by following the path of charted out by him .That
would be a great tribute to him.

INTRODUCTION :
This Book depicts the biography of great Industrialist Dhirubhai Ambani. The author has
beautifully described about him. He has said through this book that words are even less to
describe the great man lifes. He was among one of industrialist who had set up industries are
living the monuments of achievements .His only ideology that the author has describes was that
No One Has Monopoly over thoughts .So, think fast and think before others.
The life journey of the most enterprising Indian entrepreneur is reminiscent of the rags to
riches story. He is remembered as the one who rewrote Indian corporate history and built a truly
global corporate group. His life and achievements prove that backed by confidence, courage and
conviction, man can achieve the impossible. He is regarded as an icon for enterprise in India. A
man far ahead of his times, he epitomized the dauntless entrepreneurial spirit 'dare to dream and
learn to excel'. He dared to dream on a scale unimaginable before in Indian industry.
Dhirubhai visualized the growth of Reliance as an integral part of his grand vision for
India. He was convinced that India could become an economic superpower within a short period
of time and wanted Reliance to play an important role in realizing this goal. His actions were
inspiration for others. Whatever he did became a standard for others to follow. His sterling
leadership qualities, remarkable foresight, uncompromising pursuit of excellence, humility,
prodigious capacity to motivate and trust people will continue to guide and inspire future
generations. Truly, men like Dhirubhai Ambani are rare. They come gifted with the power and
the vision to change the destiny of nations, to alter the course of corporate history. They are the
empire builders, the stuff that legends are made of. Some of his notable quotes the author has
describe Dhirubhai Ambani are: "Our dreams have to be bigger. Our ambitions higher. Our
commitment deeper. And our efforts greater. This is my dream for Reliance and for India."; "You
do not require an invitation to make profits."; "Meeting the deadlines is not good enough, beating
the deadlines is my expectation."; and "Don't give up, courage is my conviction."
His success story fired the imagination of the younger generation of
Indian entrepreneurs, business leaders and progressive companies. He was an icon for them, a
role model to be emulated.

The great legendary Dhirubhai Ambani will be always source of inspiration and
motivation for the thousands of young Indian. His life story for many is a dream run from rags to
one of the richest man of India. He founded Reliance Industries in 1958 and today the company,
with over 85,000 employees, provides almost 5% of the Central Government's total tax revenue.
Ambani was credited with introducing the stock market to the average investor, and thousands of
investors attended the Reliance annual general meetings, which were sometimes held in a
football stadium, with millions more watching on television.
In 1986 after a heart attack he handed over Reliance Group to his sons Mukesh and
Anil. After his death, the group was split into Reliance Industries, headed by Mukesh Ambani
and Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), and led by Anil Ambani.

REFERENCES:
Corporate Guru Dhirubhai Ambani
Author - Prateeksha M. Tiwari

INDEX
SR NO

TOPIC

1.

Introduction

2.

Childhood and Early Life

3.

Carrier Review

4.

Guru of Equity cult

5.

Dhirubhai Becoming Polyester

6.

Major works and Achievements

Quotes
Conclusion
References

7.

8.
9.

DHIRUBANI QUOTES : Here the author has Described Dhirubhai Ambani, The Founder
of Reliance Industries (In 1969) as a Textile Company now worlds one of the leading
Petrochemical company which process 2% of worlds entire transportation fluid. His elder son
Mukesh Ambani is now the Chairman of Reliance Industries and worlds fourth richest person
according to Forbes (2010) having net worth of US $ 29 Billion.
Here are some great Quotes by Dhirubhai Ambani.
Think, Big, Think Fast, Think Ahead. Ideas are no ones monopoly
Between my past, the present and the future, there is one common factor: Relationship and
Trust. This is the foundation of our growth
We bet on people.
Meeting the deadlines is not good enough, beating the deadlines is my expectation.
Dont give up, courage is my conviction.
We cannot change our Rulers, but we can change the way they Rule Us.
Keep changing the orbits
You do not require an invitation to make profits.
If you work with determination and with perfection, success will follow.
Pursue your goals even in the face of difficulties, and convert adversities into opportunities.
Give the youth a proper environment. Motivate them. Extend them the support they need. Each
one of them has infinite source of energy. They will deliver.

SK SOMAIYA DEGREE COLLEGE OF ARTS, SCIENCE &COMMERCE

ACADEMIC YEAR: 2015-16
NAME: SUNIL .G. LALA
CLASS: SYBMS C (FINANCE)
SEMESTER: IV
ROLL NO: 164
NAME OF PROGRAM: BACHELOR OF MANAGEMENT OF STUDIES
SUBJECT: BUSINESS PLANNING AND ENTREPRENEUERIAL
MANAGEMENT
TOPIC: BOOK REVIEW ON BIOGRAPHY OF DHIRUBHAI AMBANI
FACULTY: PROF MONICA JAIN