Dhirajlal Hirachand Ambani, Dhirubhai Ambani is known by the name, born December 28 1 9 33 Corwad, Gujarat was in a lower-middle-class Modh Bania family. His father’s name was Govardhanbhai Ambani and his mother’s name was Jamnaben. He was the third of five siblings.
His father was a teacher. Due to the poor financial condition of the family, Dhirubhai used to think of ways to earn money since childhood. While studying in school, he used to put food stalls in fairs and sell food and drink, so that he would be able to help the family financially. Near Girnar, he had set up a shop for pakoras. Due to the father not being able to bear the cost of his education, he had to leave his studies after matriculation.
Job in Aden
Dhirubhai Ambani’s older brother was living in Aden city Rmniklal Yemen. Many jobs were available there, so he sent a message to Dhirubhai to call for Aden. At the age of 14, Dhirubhai went to Aden and started working at a petrol pump to fill petrol. Then he got the job of clerk in ‘ A. Besse & Company ‘. This company used to supply various types of goods to many countries in Europe, America, Africa, and Asia.
Dhirubhai wanted to learn the tricks of the trade. So they started working together in another company ‘ Gujrat Trading Firm ‘. While working there, he learned to prepare accounting, bookkeeping, shipping paper, and other documents.
After two years’ A. Besse & Company became the distributor of the products of the company named ‘Shell’. So, seeing Dhirubhai’s hard work and ability, he was made the sales manager of a petrol pump in the Aden Port area.
After reaching the post of sales manager, he started getting a decent salary. But his dreams were big. He wanted to become rich and he knew that on the basis of the job, one can earn a living and a lot of money, one cannot be rich by earning immense wealth. The company he used to work in, he started dreaming of owning a big company. Therefore, after saving a little, he returned to India from Eden in 1956 with the aim of trying his hand at business with his dream.
Establishment of ‘Reliance Commercial Corporation’
After the death of Dhirubhai’s father in 1951, his family left Chharwad and settled in Mumbai. After returning to India, Dhirubhai also started living in Mumbai. He established a trading firm ‘ Reliance Commercial Corporation ‘ there and started importing and exporting spices, nuts, and other commodities with a capital investment of Rs 15,000. In 1958, he started the import-export business between India and Aden.
In those days his family used to live in chawl. He did not have the money to rent an office. So I used to rent a table every day for two hours so that I could do my business. He did not have a phone, so with PP number he used to do business with the Gulf countries.
License rule fiercely exploited
The decade of 1950 was the era of license raj in India. The Government of India had made a rule that the foreign currency found in exports can be used only in imports of other goods. Other businessmen were not able to do business openly due to license raj. But Dhirubhai exploited it vigorously while showing wisdom.
Dhirubhai used to export spices and imported rayon. When rayon started being made in India, they started exporting rayon and importing nylon. Then when nylon started to be made in India, they started exporting nylon and importing polyester. He benefited greatly due to his foresight. Their margins were very high due to import restrictions. They started making profits up to 300 percent.
Steps in the textile sector
The Government of India started a scheme with a view to promoting Indian exports in the 1960s. Under this scheme, the earnings from export of rayon could be used for the import of nylon. Dhirubhai had predicted that the future of synthetic fibers is bright. Therefore, he took a step into the textile industry to take advantage of this scheme.
In 1919, he started his first textile mill at Naroda near Ahmedabad. After completion of construction, production started from this mill from 1949. In the early days, there were 40 laborers and there were only 6 machines.
Reliance’s ‘Vimal’ brand
Fine quality nylon was made in Dhirubhai’s textile mill at Naroda. But the early days were difficult for Reliance. Being a newcomer in the Indian textile market, no wholesaler wanted to buy the ‘ Vimal ‘ brand of Reliance.
But Dhirubhai did not get frustrated. He contacted the Chilhar businessmen directly and started selling ‘ Vimal ‘ brand clothes to them. He established a chain of retail stores across India using franchising technology. Through advertisements, she brought her ‘ Vimal ‘ brand to the doorstep of India and gradually it became the best-selling fashion fabric.
In 1971, the Government of India introduced a new scheme, which allowed import of polyester filament yarn from the proceeds from the export of nylon, which greatly benefited the ‘ Reliance Commercial Corporation ‘. By 1972, Reliance had become a very large company.
IPOs ‘Reliance Commercial Corporation’
Dhirubhai had the virtue to solve every problem with a sensible solution. There was a shortage of capital in Reliance in 1949. So to fill this gap, he issued the IPO of Reliance. In November 1949, Reliance’s IPO of 26.2 lakh shares came in the market for Rs. 10. His move changed the picture of the Indian stock market.
Proper exploitation of the stock market
Reliance was the first company in India to recognize the importance of market share and exploit it properly. When there was a shortage of capital in Reliance in 1973, Dhirubhai issued Convertible Debenture and later converted it into a share.
Dhirubhai attracted small investors from the stock market and benefited by giving them dividends, bonuses and shares. He also got a lot of benefits from this process and climbed the stairs of Reliance success.
Establishment of ‘Reliance Petrochemicals’
In 1973, he founded ‘ Reliance PetroChemicals ‘. Keeping in view the requirement of raw materials in the textile industry, he invested in petrochemicals.
Use of new technology
In 1971, Dhirubhai’s elder son Mukesh Ambani joined the company. In 1983, his younger son Anil Ambani stepped into the company. After these two came into the company, the company had many new experiments from 1979 to 1949. Information technology was used in the company, high-tech machines replaced old machines.
Dhirubhai was also an advocate of investment in new technology. This new step of the company benefited greatly in the expansion of the company and then the company expanded in the following years in various fields like telecommunication, information technology, energy, power, infrastructure services, capital market and logistics etc.
Family of Dhirubhai Ambani
In 1956 Dhirubhai Ambani married ‘Kokila Ben Ambani’. They have four children – two sons Mukesh Ambani and Anil Ambani and two daughters Nina Kothari and Deepti Salgaonkar.
The award
Dhirubhai Ambani was honored with many awards and decorations.
- He was ranked in Asia’s list of 50 most influential people by Asiaweek Magazine in 1979, 1949, and 2000.
- He was awarded the Conferred Man of the Century award by the Chemtech Foundation and Chemical Engineering World in the year 2000 for his significant contribution to the development and expansion of Chemical Industries in India.
- He was awarded the Lifetime Achievement for Corporate Excellence at the Economics Times Awards in the year 2001.
- In 2011, he was awarded the ‘ ABLF Global Asian Award ‘ at the Asian Business Leadership Forum Awards.
- In the year 2014, he was awarded the ‘Padma Vibhushan’, the second major civilian award of India.
Death
Dhirubhai Ambani died of a heart attack on 8 July 2002 at Breach Candy Hospital, Mumbai. At that time the gross assets of Reliance Group were 70,000 crores. But even today, he is a great hero for the people. Who established a world-class company in India.
Dhirubhai Ambani proved that through his dreams, intelligence, and hard work, success can be achieved without any degree, without big capital and family prosperity. Starting from just 15000 rupees, he made India proud by forming a world-class company in India. The story of his life is an example and inspiration for all Indians.
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