Lifestyle
Inspirational story of Dhirubhai Ambani
EARLY LIFE
Dhirubhai Ambani was one of the sons of Hirachand Gordhanbhai Ambani, a village school teacher belonging to the Modh Baniya community and Jamnaben Ambani and was born in Chorwad, Junagadh district, Gujarat on 28 December, 1932. He did his studies from Bahadur Kanji school. In his youth, he joined the protests against the Nawab of Junagarh and organized many actions against the Nawab's plans to join Pakistan after independence.
In 1948, he left for the Port of Aden to work for A. Besse and Co. along with his brother Ramnikbhai.
He later came to sell shell and Burmah oil products for the company.
FIRST MONEY MAKING OF LIFE
He once made a lot of money by melting the silver bullion and selling it as pure silver because he knew that the value of pure silver was much higher than the bullion.
What he did?
Collecting yemeni rials and melting these coins to get silver. Then sell it as pure silver in market.
CRISES IN YEMEN
Independence war got started in yemen in 1950s. It leads to mass migration of indians residing in yemen.
FOUNDING OF RELIANCE INDUSTRIES
Ambani returned to India and started "Majin" in partnership with Chambaklal Damani, his second cousin,who lived with him in Yemen. Majin was to import polyester yarn and export spices to Yemen.
The first office of the Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid Bunder. It was a 350 sq ft (33 m2) room with a telephone, one table and three chairs. Initially, they had two assistants to help them with their business.
VIMAL BRAND
Control over stock exchange
Extensive marketing of the brand in the interiors of India made it a household name. Franchise retail outlets were started and they sold the "Only Vimal" brand of textiles. In the year 1975, a technical team from the World Bank visited the 'Reliance Textiles' Manufacturing unit.
In 1988, Reliance Industries came up against a rights issue regarding partly convertible debentures.It was rumoured that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, The Bear Cartel, a group of stock brokers from Calcutta, started to short sell the shares of Reliance. To counter this, a group of stock brokers until 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 buying and a price of ₹ 152 per share was maintained until 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, much money was provided to the stock brokers who had bought shares of Reliance, by Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an Unbadla, or penalty sum, of ₹ 35 per share. With this, the demand increased and the shares of Reliance shot above ₹ 180 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 ₹ 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 how a yarn trader until 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 ₹ 220 million in Reliance during 1982–83. These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in Isle of Man. 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.
DEATH
Ambani was admitted to the Breach Candy Hospital in Mumbai on 24 June 2002 after he suffered a major stroke. It was his second stroke, the first had occurred in February 1986 and had paralyzed his right hand. He was in a coma for more than a week and a number of doctors were consulted. He died on 6 July 2002.
The country has lost iconic proof of what an ordinary Indian fired by the spirit of enterprise and driven by determination can achieve in his own lifetime— Atal Bihari Vajpayee, former Prime Minister of India
QUALITIES WHICH WE CAN LEARN
THINK FIRST AND APPLY IT AS SOON AS POSSIBLE
RISK TAKING
SELF CONFIDENCE
YOU MUST KNOW YOUR ENVIRONMENT AND WHAT PEOPLE WANT
NEVER GIVE UP
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