dhiru - full
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THEUNDISPUTED
KING OFINDIAN
INDUSTRY
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Who is dhirubhai ambani?
the indian business tycoon
Founder of reliance industry
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Dhirajlal Hirachand
AmbaniThe milestones
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Dhirubhai Ambani
The milestones
1932 - Born in chorwad, Gujarat. 1949 - Age of 17, he went to Aden in Yemen 1958 - Dhirubhai Ambani returned to India &
Started his first company in Mumbai,commodity trading and export house.
1965 - Champaklal Damani and Dhirubhai
Ambani ended their partnership.
1966 - Set up a textile mill in Naroda,
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Dhirubhai Ambani
The milestones
1977- Reliance went Public with I PO 1982 - Ambani began the process ofbackward integration
1986 - Dhirubhai suffers stroke. Anil and
Mukesh catapulted to the hot seat. 1988 - Fi bre intermediates and chemicalproduction started.
1995 1st Indian company to report a net
profit of rs-10 billion.
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TraitsDriveHigh desire for achievement
Highly Ambitious
Revolutionary
IntelligenceQuick Situational Decision
MakingJob Relevant KnowledgeNo prior KnowledgeGreat Desire to learn Desire to
leadInfluentialResponsible
SelfConfidentAbsence of Self Doubt
Convincing
ExtroversionHighly EnergeticCharismatic
Lively
"D
CO
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Achievements
Unlike other corporate houseswho dominated over a periodof time, Dhirubhai Ambani
could achieve within a shortperiod with a razor likesharpness and businessacumen.
Dhirubhai Ambani proved to be
A King in his Diversification.
RIL is now India's largestPrivate Sector with turnoverover US$19.976 billion backed
by a profit over US$2.03billion.
Chemtech and ChemicalEnginering. World gave the"Man of the Century " award inNov 2000 to Dhirubhai Ambani
Dhirubhai won the " Dean'sMedal " of Wharton School,University of Pennsylvania in
June 1998 for " OutstandingLeadership
FICCI conferred the title " Man of20th century " on D.A.in 2000
Times Of India in 2000 votedDhirubhai Ambani as thegreatest creator of wealth inthe country
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Dhirubhai AmbaniA Transformational Leader
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Motivates followers byencouraging them to putgroup interests first.
Each behaviour isdirected to eachindividual to expressconsideration andsupport.
Employees achieveobjectives through
higher ideals andmoral values.
Works tochange the
organisationalculture.
Promotecreative
andinnovative ideas.
Leadership is
proactive.
TransformationalLeadership
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Leader member exchange theoryLMXT
What is LMXT??
LMXT explains how relationships ofleader with each member of thegroup can develop in unique ways.
Two-way relationship betweensupervision and subordinates
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LMXT
Out-Group
In-Group
New
Member
Great Performance
Poor Performation
Leader
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LMXT in Crisis management
1982 Stock Adventure
When things went wrong, Dhirubhaisfirst instinct was always to join hismen in putting out the fire.
In 1982 a calcutta based bearsyndicated sold a large number ofreliance shares hoping to bring theirprices down.
Dhirubhais loyal brokers bought back
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LMXT used in Corporate Battles
VS
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LMXT used in Corporate Battlesheto
ery
out
he
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LMXT used in Political Battle
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Managerial Grid
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Managerial Grid
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When things went wrong he was thefirst person to sense that thecircumstances would have been
beyond his teams control, ratherthan it being a slip on their part.
His first instinct was always to joinhis men in putting out the fire an notcrucifying them for it.
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The yemeni Rial coin had high content ofpure silver in those4 days. Young Dhirubhaipercived high demand for rial in london
stock exchange and purchased them in bulkand melted the coins in silver and sold itbullion traders in london.
GOI introduced High Unit Value Scheme;
hence Dhirubhai shifted his interests fromspices to nylon fabrics
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Dhirubhai Ambani is credited with startingthe equity culture in India.
Dhirubhai identified a new market for his
brand Vimal: the non-metro urbansegment.
Backward integration: to strengthen hi
position in the textile sector, Dhirubhaiintegrates backwards and produced fibres.
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When most business housesdepended on government ownedfinancial institutions for funds
Dhirubhai raised capital from thepublic by offering shares of thecompanies. IPO
Vimal Brand
Reliance cell phone
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Dhirubhai Faced resistance from clothmerchants; so decided to open his ownshowroom for Vimal
Dhirubhai Ambani announced a buy-backscheme when polyester was losing itsdemand.
Whenever a task seemed too big to be
accomplised, he would reply No is noanswer! Its difficult but not impossible!
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Using his connections in Aden, he exported a wide range ofcommodities to Aden.
To Promote Vimal, an advertising campaign was launched,toured the country intensively offering franchises toshareholders.
Cricket world cup 1987 also known as Reliance World cupas it was sponsored by Dhirubhai
Dhirubhai managed to create favourable centers in allimportant areas- among bureaucrats, the politicians as wellas the media. These were the areas where power vested.
Business is nothing but a web of relationships and
obligations.
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Dhirubhai followed the open door policy. Employees couldwalk into his cabin and discuss their problems with him.
He was always inviting people into sharing thoughts andideas rather than shutting out.
Always there for his team and brought around confidence inthem.
Arm-around-the-Shoulder leader
This tendency that he had to draw people towards him
manifested itself in countless ways. Peoples view: That did much more than words in letting
people know that they belonged, that they had trust andthey had him on their side!
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Utilisedopportun
ities inGOI laws
Out ofthe box
approch
Initiationof
debentur
e scheme
RevolutionaryThinking
Exercised
politicalinfluence
Large scalediversifation
Backward
Integration
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Dhirubhaism
He never followed the text book style ofmanagement and evolved a uniquestyle.
A perfect manager of Time, Money, Menand passion to find solution to problems.
Believed that business was not all aboutEthics & morality. It was all aboutExpansion and success.
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After his cremation on the evening of Sunday July 7, his
elder son Mukesh reminded those gathered on the
occasion that in 1957, when Dhirubhai arrived in Mumbai
from Aden in Yemen, he had only Rs 500 in his pocket.
He was not exactly a pauper since Rs 500 meant much
more than what the amount means in this day and age.
Nevertheless, one could not ask for a more spectacular
rags-to-riches tale.
So what is he really, this one-time cloth trader whose group now owns textile
manufacturing companies? A ragged marketeer for Shell in Aden whose sons now
oversee India's largest oil refinery in Jamnagar? A man who ran from pillar to post,
begging for a break, and whose representatives -- solely on account of business interest
-- now part of an unofficial negotiating team to Pakistan at the height of the Kargil war? A
man who almost single-handedly exploded the somnolent share bazaars into freneticactivity, using it as a lever to gain funds and distribute wealth on an epic scale? Dekho,
he will tell you, as his sons will, we're not losers. Failure was never an option.
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Despite his almost Midas Touch, Ambani has
been known to have flexible values and anunethical streak running through him. His
biographer himself has cited some instances of
his unethical behavior when he was just an
ordinary employee at a petrol pump in Dubai. He
has been accused of having manipulatedgovernment policies to suit his own needs, and
has been known to be a king-maker in
government elections . Although most media
sources tend to speak out about business-
politics nexus, the Ambani house has always
enjoyed more protection and shelter from the
media storms that sweep across the country.
The plethora of scandals and
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The plethora of scandals and
controversies surrounding the Reliance
group left Dhirubhais supporters
completely unmoved. His supporters
and there was no dearth of them
would argue that there was no
businessman in India whose track
record was lily-white. Had the textile
tycoon himself not acknowledged once
to Time magazine that he was no
Mother Teresa, they would ask. EvenHamish McDonalds unflattering
portrayal of Dhirubhai in his book The
Polyester Prince published in
Australia by Allen and Unwin and not
available in India acknowledges hisremarkable entrepreneurial talent that
made him one of the few Indians on the
Forbes list of the worlds wealthy and
placed Reliance among the leading 500
companies in the developing worldcompiled by Fortune magazine.
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opoly controls were the lock, licences were the key and corporate India was
e pocket of policymakers. Dhirubhai barged into that league, playing exactly
he established, shadowy rules of the game. Only, he wouldn't toe the line. He
ted the line to toe him. "I had the courage to defy the system," he said, "face
ecution even."
He was a man who aroused extremeresponses in others. Either you lovedhim or you hated him. There was justno way you could have been
indifferent to this amazingentrepreneur who thought big, actedtough, knew how to bend rules orhave rules bent for him.
He was a visionary as well as a manipulator, a
man who communicated with the rich and the
poor with equal felicity, who was generousbeyond the call of duty with those whom he liked
and utterly ruthless with his rivals a man of
many parts, of irreconcilable contrasts and
paradoxes galore.
Quotes by Dhirubhai Ambani
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*"I am deaf to the word "no"."
"Think big, think fast, think ahead. Ideas are no one's
monopoly"
"You do not require an invitation to make profits"
"Meeting the deadlines is not good enough, beating thedeadlines is my expectation
"We bet on people
"We cannot change our Rulers, but we canchange the way they Rule Us
Quotes by Dhirubhai Ambani
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