Mukesh Ambani

15
Executive Leadership- Asia-Pacific: Mukesh Ambani -Biloni Doshi -Tom Phillips

description

Mukesh amabani leadership

Transcript of Mukesh Ambani

Page 1: Mukesh Ambani

Executive Leadership- Asia-Pacific:Mukesh Ambani

-Biloni Doshi-Tom Phillips

Page 2: Mukesh Ambani

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

Page 3: Mukesh Ambani

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

Page 4: Mukesh Ambani

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

Page 5: Mukesh Ambani

Videohttp://www.youtube.com/watch?v

=ypA71txfrJw

Page 6: Mukesh Ambani

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

Page 7: Mukesh Ambani

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.”

Page 8: Mukesh Ambani

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

Page 9: Mukesh Ambani

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

Page 10: Mukesh Ambani

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

Page 11: Mukesh Ambani

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.

Page 12: Mukesh Ambani

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

Page 13: Mukesh Ambani

Reliance Industries Ltd. (RIL.BO) -Performance

1/3/

2000

7/3/

2000

1/3/

2001

7/3/

2001

1/3/

2002

7/3/

2002

1/3/

2003

7/3/

2003

1/3/

2004

7/3/

2004

1/3/

2005

7/3/

2005

1/3/

2006

7/3/

2006

1/3/

2007

7/3/

2007

1/3/

2008

7/3/

2008

1/3/

2009

7/3/

2009

1/3/

2010

7/3/

2010

1/3/

2011

7/3/

2011

1/3/

2012

7/3/

2012

1/3/

2013

7/3/

2013

0

200

400

600

800

1000

1200

1400

1600

1800

Stock Price

Stock Price

Rs

Page 14: Mukesh Ambani

Reliance Reviews

Page 15: Mukesh Ambani

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?