Mukesh Ambani
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Transcript of Mukesh Ambani
Executive Leadership- Asia-Pacific:Mukesh Ambani
-Biloni Doshi-Tom Phillips
Mukesh Ambani: Background
Born: April 19th, 1957 (56 years old) Raised: Mumbai, India Education: University of Mumbai (Chemical
Engineering), drop-out of Stanford University
Married with 3 children's and has 3 siblings Net Worth: Est. 21.5 Billion dollars India’s richest person for 6 years running Forbes Magazine's 2013 “37th Most
Powerful in the World” Inherited business from his father
Dhirubhai Ambani Chairman & CEO Reliance Industries
Limited (textiles, telecomm, petrochemicals)
Owns Mumbai Indians of the Premier League (cricket)
Board of Directors for Bank of America, served on Council on Foreign Relations
Glass door ranking: 88% approval ranking
AchievementsJoined Reliance in 1981- father
Dhirubhai Ambani’s businessBackward integration from textile-
>polyester fibers->petrochemicalBuilt
◦Worlds largest petroleum refinery◦Plant of textile enterprise, oil refining &
gas production◦Information and communication
technologyStarted Diamond Jewelry business
Companies Owned by Ambani’s
Dhirubhai AmbaniFounder of Reliance Group
Anil Ambani’s CompaniesReliance CommunicationsReliance CapitalReliance Energy Reliance Natural Resources Ltd Reliance Broadcast Network Ltd
Mukesh Ambani’s CompaniesReliance IndustriesReliance Petroleum IPCL Reliance Industrial Infrastructure
Videohttp://www.youtube.com/watch?v
=ypA71txfrJw
Major Leadership Traits Introvert Intelligent Integrity- “The organizational architecture is
really that a centipede walks on hundred legs and one or two don't count. So if I lose one or two legs, the process will go on, the organization will go on, the growth will go on”
Delegation: Brought in experts in their fields and allowed flexibility and authority to sit with them
Determination: Build petro-chemical plant from scratch in 2 years
Visionary: Build India’s largest petrochemical plant, venture in life-science- genomics(use your own cell to make organs)
Humble: Doesn’t believe in show business Positive: “I think that our fundamental belief
is that for us growth is a way of life and we have to grow at all times.”
Leadership
Delegation
Determination
SociabilityIntelligence
Integrity
Technical / Human / Conceptual skills
• Innovative in use of human capital and training
• Inherited a stable company, took advantage of de-regulation
• Advocate of investing in human capital
• Extremely gregarious and sociable
• “Have a big vision, challenge conventional wisdom, work towards long term objectives and aim for the best, demand excellence, do not fear change or the unknown, work hard and never accept defeat.”
Style approach: 1 – 9, 9-9 model
• Focuses on the bottom line, beating Taiwan and Japan in the business
• Believes in delegating responsibility to experts and having the best training
• Focuses on relationship building
Transformational LeaderOut of feudal system
◦ Removed middle-man and trained his employees by DuPont
No Let-up◦His father died still ensure business ran
uninterrupted.Continuous Learning
◦Part of US Chemical Association to get all latest information
Expansion◦Ventured into different business
Brother’s Dispute 2002:
◦ Father died with no will◦ Mukesh- Chairman and Anil- vice-chairman.◦ Mukesh tired to oust Anil from board
2004: Ownership issues became public 2005:
◦ Mother involved in demerger◦ High court approved
Since then many disputes:◦ Gas contract disputes◦ Accusation by Anil on Petrol Minister secret dealings,
power cuts◦ Defame suit by Anil
Finally, after a decade they are at peace and in good terms
Reliance Industries Scams RIL is just a contractor hired by Indian Government to extract
gas.
◦ Strangely, RIL sold 30% stake to British Petroleum in July 2011 at $ 7.2 billion. Government gave approval to RIL to do that. How can they do that?
Performance of RIL so far has been much worse than perhaps the worst performing government department.
4 times cost escalation within 2 years from $ 2.39 billion in 2004 to $ 8.8 billion in 2006.
Increase in gas price from $ 2.34 per mmBTU in 2004 to $ 4.2 per mmBTU in 2007 to the present demand of $ 14.2 per mmBTU.
Capacity created for producing 80 mmscmd after incurring such a huge cost ends up producing just 27 mmscmd after 12 years.
31 oil wells should have been in production till now. Out of them, just 13 are functional.
Antilla- $1Billion House Most expensive house on earth Location: South Mumbai, India Size: 48,780 sq ft Designed by Chicago Architects,
Perkins and Will 600 full- time staff members Residence for 5 people Amenities: 6 floor of parking,
theatre, hanging garden, ballroom, in-house car maintenance and multiple pools.
Mukesh also gifted his wife $60M private jet
Reliance Industries Ltd. (RIL.BO) -Performance
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Reliance Reviews
Discussion
Does successful leaders have to power to twist the system?
With huge expansion and presence in various sectors. Do you think this growth will be sustainable?
Is it justifiable to buy such expensive house when country has 33% level of poverty?