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    Anil Ambani was listed as the world's 6th richest person in 2008 worth $42 billion, but by 2019 his net worth had fallen to just $500 million. After his father's death in 2002, a feud erupted over control of Reliance which led to the company splitting into two groups led by Anil and Mukesh Ambani respectively. Anil's heavily leveraged companies like Reliance Communications saw huge debt burdens and ran into financial trouble as Mukesh Ambani's Reliance Jio launched affordable mobile services in 2016, causing customer losses. Anil was also unsuccessful in other sectors like defense, and he ultimately had to resign as chairman of Reliance Communications as its share price

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    Anil Ambani was listed as the world's 6th richest person in 2008 worth $42 billion, but by 2019 his net worth had fallen to just $500 million. After his father's death in 2002, a feud erupted over control of Reliance which led to the company splitting into two groups led by Anil and Mukesh Ambani respectively. Anil's heavily leveraged companies like Reliance Communications saw huge debt burdens and ran into financial trouble as Mukesh Ambani's Reliance Jio launched affordable mobile services in 2016, causing customer losses. Anil was also unsuccessful in other sectors like defense, and he ultimately had to resign as chairman of Reliance Communications as its share price

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    r.com

    Uploaded by

    ujjwalahuja072
    Anil Ambani was listed as the world's 6th richest person in 2008 worth $42 billion, but by 2019 his net worth had fallen to just $500 million. After his father's death in 2002, a feud erupted over control of Reliance which led to the company splitting into two groups led by Anil and Mukesh Ambani respectively. Anil's heavily leveraged companies like Reliance Communications saw huge debt burdens and ran into financial trouble as Mukesh Ambani's Reliance Jio launched affordable mobile services in 2016, causing customer losses. Anil was also unsuccessful in other sectors like defense, and he ultimately had to resign as chairman of Reliance Communications as its share price

    Copyright:

    © All Rights Reserved
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    Anil Dhirubhai Ambani was listed by forbes as world’s 6th wealthiest person in 2008 with the net

    worth of $42 billion. Eleven years later, the 59 year old is fighting to save his reputation and is
    left with $500 million net worth. So what happened in these 11 years that he lost $44.5 billion?

    After the death of dhirubhai ambani in 2002, there was a feud for control which ultimately lead
    to the split of the Reliance Group. The reliance group was divided in 2 groups, Anil
    Ambani(RDAG) got Reliance power, Reliance communication and Reliance Financial services
    whereas Mukesh Ambani(RIL) got Reliance Petroleum.

    All the companies of RDAG were doing pretty well till 2014 and anil ambani borrowed heavily
    to diversify in different sectors, purchased companies in media and entertainment and in defence
    sector.

    So what happened that all his companies went down?

    1. The launch of Jio

    In 2016, jio started giving free data and voice facilities. So customers started shifting to Jio
    telecom. Total 66% of Anil ambani investment, his biggest assets was in telecom venture
    Reliance Communication.

    Rcom was just one of many other who had to put shelters down. Share price of Rcom fall to half
    and wrote off Rs450 crore of bad debts, within few days of jio entering in the business.

    2. Huge debts

    The R.com debt was doubled from Rs.25,000 Cr in 2010 to Rs.43,000Cr. in 2019, to reduce the
    debt burden the anil ambani’s Reliance ADA group sold its involvement in the Indian media and
    entertainment in 2 transactions sold Reliance Capital to ZEE Entertainment and 49% stake in
    FM Radio operations to ZEE Media. Total value of Rs.1872 Cr. Was released from these
    transactions.

    3. Defence sector business

    In 2016, AGAD group entered in defence sector by acquiring controlling stake in Gujarat based
    pipa[av Marine and offshore at Rs.2082 Cr. but was failed to cash in when the value of company
    was Rs.7240 Cr. in 2018. The company worth fell 90% in 2019 to Rs.757 Cr.

    At last Anil Ambani has to resign as the chairman of R.Com and the company's share further
    went down. It's sad how it all went for R.com but we can learn from their situation and try not to
    repeat those same mistakes.

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