Reliance Industries Successor selection and grooming plan is being discussed in media. The speculation started that Mukesh Ambani is working towards selecting Reliance Industries Successor. The appointment of his younger son as director in Ril companies looked at a step in this line. Anant Ambani, the younger son of Mukesh Ambani appointment as the director in Reliance New Energy Solar and Reliance New Solar Energy on 5th July. This news has heated the discussion of Reliance Industries Successor planning in Business World. Let me tell you that Mukesh Ambani youngest son has got new responsibility in Reliance industries.
Earlier to this, he was made the director of Reliance Oil and Chemicals in February this year. He was also an additional director on the board of Jio Platforms. Anant is also handling many responsibilities in Reliance Industries from sometimes. Now Anant’s appointment as director in new companies has caught people’s attention. There has been a lot of speculation among the investors about the successor of Mukesh Ambani. This fragrance is also present because Mukesh Ambani has three children and the history of business division in the Ambani family has been bitter.
What was the tussle between Mukesh and Anil Ambani after Dhirubhai died
Let me tell you that there was tussle between Mukesh Ambani and Anil Ambani seen after the death of Dhirubhai Ambani in 2002. After Dhirubhai death Ambani became the chairman of Reliance Group and Anil Ambani became the Managing Director. Before this Mukesh Ambani joined Reliance in 1981 and Anil Ambani in 1983. Both brothers continue to support his father in many business without any dispute. The rift between both the brother came out after the death of Senior Ambani. Thats why Mukesh doesn’t want to take change while selecting Reliance Industries Successor this time.
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Let mettle you that Reliance Industries founder and chairman Dhirubhai Ambani died in July 2002. But he has not written any will before his death. After his death Mukesh and Anil’s feud came out for the control of business empire build by their father. Even Dhirubhai Ambani’s wife Kokilaben was upset due to this ongoing dispute between both the brothers. To address the family dispute she divided the Reliance Industries into two parts in June 2005. VK Kamat, then the chairman of ICICI Bank has intervene in this partition of empire between both the brothers.
What went wrong after the demerger of Reliance Industries in 2006: Reliance Industries Successor
To solve the ongoing tussle between both the brother for reliance Industries. Kokilaben, the wife of Late Dhirubhai Ambani decided the equal distribution of power between both the brothers. After partition Reliance Industries, Indian Petrochemicals Corp Ltd, Reliance Petroleum, Reliance Industrial Infrastructure Ltd has gone to Mukesh Ambani. Younger brother Anil Ambani got companies like RCom, Reliance Capital, Reliance Energy, Reliance Natural Resources etc. Anil Ambani also formed a new group called Anil Dhirubhai Ambani Group for all his businesses.
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During the division both the brother got almost equal wealth and companies to run independent business. Since then Mukesh Ambani’s business is touching new heights and he has build an empire worth over 3.8 trillion Indian rupees. But younger brother Anil’s fortune is not supported him. He has lost almost all his wealth in last 15-16 years and his group is debt ridden at the moment. After taking over the business, Mukesh Ambani all projects succeeded and touch new heights. But Anil Ambani all initiative lost the ground and many of his companies forced to become bankrupt. Mukesh doesn’t want this for his some and they why he is working towards selecting Reliance Industries Successor.
How many children Mukesh Ambani has and why they do at present
Mukesh Ambani has three children and all of them is supporting various business run by his father. They where made directors is many key projects and companies. Here is the list of responsibility handled by all three
Akash Ambani: In 2014, took a degree in Economics from Brown University. After that he joined the family business. Jio Platforms, Jio Limited, Saavn Media, Jio Infocomm, Reliance Retail Ventures are on the board.
Isha Ambani: Studied at Yale and Stanford. Joined the family business in 2015. Jio Platforms, Jio Limited, is on the board of Reliance Retail Ventures. Isha got married in December 2018 to Anand Piramal, son of businessman Ajay Piramal.
Anant Ambani: Studied at Brown University of America. Reliance New Energy, Reliance New Solar Energy, Reliance O2C, are on the board of Jio Platforms.
What is the future plan of Reliance Industries and role of Ambani Children’s
Reliance industries has a very aggressive plan for next few years. They are planning to invest huge money in Jio for 5G capability. They are planning to enhance Jio wireless network for video streaming and high speed user experience. Jio network also planning to bring Netflix Disney Plus Hotstar, Amazon Prime Video and TV channels under single roof. In July 2020, Mukesh Ambani and his children Isha and Akash gave a glimpse of future plans at Reliance’s AGM i.e. annual meeting of shareholders.
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Reliance industries also very bullish about their retail business. They are planning to add more merchants on their e-commerce venture JioMart in the next three years. Reliance will also invest Rs 15,000 crore in value chain partnerships and future technologies to enhance e-commerce business. Apart from retail Reliance Industries also planning to venture in Green Energy Business. The group planning to invest about 75,000 Crore in thus sector to produce 100 GW of solar energy in the next 10 years. Ril also started Dhirubhai Green Energy Complex will be started in Jamnagar, Gujarat. Keeping all these succession plan Reliance Industries Successor has to be selected very carefully.
What is family council and how they will select Reliance Industries Successor
As per media reports there is a discussion going on in Reliance Industries for its successor selection. The group advisor believe that reliance industries biggest challenge at this moment is the good return for investors. There is also a risk of ‘Key Man’ in front of investors as Mukesh Ambani getting older by each passing day. Ril conventional business of oil and gas has limited scope of growth in coming years. These area the area of concern for Reliance Industries at this moment.
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The address this challenge and continue to gain the investors trust Reliance Industries Successor has to be selected very carefully. As per media reports Mukesh Ambani will form a family council in this regard. This council will decide the successor of Reliance Industries in future. Senior members of the family will be included in this along with the three children. Apart from this, there will also be mentors and advisors join this council. It was claimed that by the end of next year, the blueprint for working on the succession plan would be ready. However, a Reliance Group spokesperson rejected the report. He said that it is completely based on imagination.
