Business, Government & Society

Dhirubhai
Ambani
GROUP NO.- 03

AYUSH | DIVYA | ESHA | SAKSHI | SANJANA | SATYAM

The Beginning
At 17, Ambani reached Aden. Worked
in the Shell refinery that pain Rs. 300
a month. Learnt about the Oil
Business.
From filling gas at petrol station, he
rose to Sales Manager and to
Clerkdom in a merchandising firm.
In 1958 after almost 8 years in Aden,
Ambani landed in Bombay to
start his own business.
As his business exploded, he
mainly depended on his family
members for handling it.
Ambani took a loan and started Reliance Commercial
Corporation, a trading firm with capital of Rs. 15,000.
Reliance Commercial Corporation- An export house which
traded in spices mainly.
Exploited the connections in Aden which was a free port
and had tremendous demand for a range of commodities.
Soon expanded into other commodities, following the
strategy of offering higher quality products and at lower
profit rates.
As the corporation grew, Ambani ventured into textiles in
mid 1960s
Government had recently introduced new schemes for
Synthetic Textile imports and exports.
Established the first textile mill in 1966.
Continuing a policy of backward integration and
diversification, he gradually shaped Reliance into a
petrochemicals behemoth and later added plastics and
power generation to the company’s businesses.
From there, the journey has only seen exponential growth.
Backwards Integration
Clear and effective long term strategy.
Business
Practices
Financial Wizard
Sound knowledge and innovative use. Initially a firm believer in the
shareholder theory, Dhirubhai
worked solely to further
Reliance's progress and at the
Technology Vs. People same time maximize the
Knowing what to look for in each aspect. shareholders' wealth.
 The Government Story
Importance of Understanding
Involvement Policies

Influenced people to pick his way in Attentive to the current changes in

midst of tight government controls government schemes and policies
over businesses.

'Government of India is the most Registered reliance textile industries as

important external environment.' a powerloom unit to take advantage of
government regulations.

Spent hours educating the guardians of

Took the opportunity to import
the Licence Raj. Says, 'Bureaucrats needed
texturizing machinery when there was
to be convinced by numbers and details
a high demand.

Understanding of
Society
Dhirubhai Ambani is a world renowned
entrepreneur who was known for
handling his business through a
crripling and stodgy economy.
There were many controversies that
Dhirubhai faced while conducting his
operations but his confidence and
resolve in his actions were unshaken.
Through many examples, we can see
how the founder's vision and charisma
helps the business grow multifold.
Ambani followed the principle lines of Latent
Demand. He tried to remove the constraints
surrounding demand.
Dhirubhai also understood the mindset fo
common people and knew that there is no lack
of demand which led him to integrate his
business accordingly.
Ambani was credited with introducing the stock
market to the average investor in India, and
thousands attended the Reliance annual general
meetings, which were sometimes held in a
sports stadium, with many more watching on
television.
Ambani always kept society at the forrfront of
his strategies and policies and this helped his
business gain recognition worldwide.
The Legacy
Quintessial Indian rags to riches story
Quality and foresight
Leapfrogging, could be called humility
or cunning
Importance of GOI Approval in
License Raj era
Shareholder value