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Dhirubhai Ambani An Indian Entrepreneur History Essay

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Stanford Dhirubhai Ambani Fellowship Essay Starter Ideas [#permalink]

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20 May 2015, 05:12
The Dhirubhai Ambani scholarship essay is " How do you aspire to shape India's Future". Can anyone who has previously written and succeeded, lend some bright ideas/directions? Its 250 words and that's highly constraining. Should I take about my Post MBA goals or Stanford's contribution in the whole scheme of things?(But those are already 2 separate essays!!)...Or is it my wishful thinking that I need to present (How realistic can I sound if I say I want to reduce corruption..All I can think of is take a gun and go on a killing spree of all the corrupt people....)

Dhirubhai Ambani, was an Indian Entrepreneur who reformed the thought process of doing business in India. He inspired people to beat the system rather than be in the system if one's dreams asked for it. Dhirubhai believed said "Only when you dream it you can do it" and to "Think big, think fast, think ahead. Ideas are no one's monopoly".

Dhirubhai Ambani was born in Chorwad district of Gujarat in India, on December 28, 1932.

He died in Bombay on July 6, 2002.
Dhirubhai was born on 28th December, 1932, into a Modh Baniya family, in Chorward village in the district of Junagarh, Gujarat. Father Hirachand Govardhandas Ambani was a school teacher and mother Jamnaben was a home maker. Dhirubhai has four siblings, Trilochanben, Ramnikbhai, Jasuben and Nathubhai. Dhirubhai had little interest in formal education.

(McDonald 1999, p12) He is survived by his two sons, two daughters and wife. His two sons have been involved in the running of the company since Dhirubhai suffered a stroke in 1986. (McDonald 1999, p12)

Dhirubhai Ambani was a dynamic entrepreneur who started with an investment of Rs.15000 (300 USD) as an initial investment and turned it around to create a multibillion dollar Reliance Group of Industries with interests in textiles, petrochemicals, energy and telecommunications.(Dhirubhai Ambani - End of an era, 2009)

He always believed in 'actions speak louder than words' and during his life he responded to all sorts of sniping criticism with silence (Krishnamurthy, 2006).

Ambani returned from Yemen to India and started "Majin" in partnership with Champaklal Damani, his second cousin, who lived with him in Turkey . 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. During this period, Ambani and his family stayed in a two-bedroom apartment at the Jai Hind Estate in Bhuleshwar, Mumbai. In 1965, Champaklal Damani and Dhirubhai Ambani ended their partnership and Ambani started on his own. It is believed that both had different temperaments and a different take on how to conduct business.[citation needed] While Damani was a cautious trader and did not believe in building yarn inventories, Ambani was a known risk-taker and believed in building inventories to increase profit.

He believed that if one had the determination and willingness to work, one could do wonders in business as long as the integrity and honesty was maintained. He never cared for what the world or society had to say so long as he was convinced that the idea would work.
He never used charity as a platform to gain publicity. Sometimes, he would even go to the extent of not letting the recipient know who the donor was. Such was the extent of his generosity. "Expect the unexpected" just might have been coined for him.

Capitalising on opportunities based on new ideas and taking advantage of it before others can is something he strongly propounded. One such occasion was when he completed high school and went to Aden to work.

I completely agree that one’s achievements are more important than his or her personal faults especially when he or she achieves greatness in some field. A lot of people are born and then they die after spending a span of time on earth. But there are very few people who leave their everlasting marks on the sands of time, which pushes the life of the other people on this earth forward. It is this capability of those few people’s achievements that gives us the courage to face the realities of life every day. I believe that such people’s achievements are definitely more important than their failures due to the following reasons.

According to McDonald (1999, p16) The treasury of the Arabian Kingdom of Yemen noticed something different happening to their country's currency. A unit of their money, solid silver coin called Rial, was disappearing from circulation.

The sons of a petty trader from are mote village in rural Gujarat, Dhirajlal Hirachand Ambani - known as Dhirubhai - moved to Aden as a teenager in order to seek his fortune. He started work as a petrol station attendant before taking up a clerical position for an oil company that was the sole distributor of shell products there. While in Aden, home too many Gujarati expatriates, he realized that a discrepancy between the rail-sterling exchange rate and the intrinsic value of the silver content in Aden’s coinage afforded an excellent opportunity to make money. This arbitrage generated some $ 3,000 in seed money for the modest trading enterprise that Ambani set up when he returned to Bombay in 1958.

Enquiries were made and it was found that a young boy named Dhirubhai, had ordered for as many Rials as were available. Ambani observed that the value of the Rial's silver content was higher than its face value.
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.

So he began to buy Rials, melted them down, and sold them to dealers in UK. The profit margins were small but then he made money. "I don't believe in not taking opportunities." - Dhirubhai said.

Contents

Introduction.............................................................................................3

Company Information.............................................................................4

Entrepreneurial Process .........................................................................5

Major Company issues with recommendations.

Location: India
City: Pune
GMAT 1: 680 Q49 V34
GPA: 3.4
WE: Business Development (Manufacturing)
Re: Stanford Dhirubhai Ambani Fellowship Essay Starter Ideas [#permalink]
Currently I am working with an oil services company and am located in Saudi Arabia for the past 2 years. Do I still qualify for the Stanford Dhirubhai Ambani Scholarship? Does anybody have a prior experience with such an issue and can give me a definitive answer.

.....................................8

Conclusion..............................................................................................9

Reference List.........................................................................................10

Introduction:

A petty trader's son, who was from a remote village in rural Gujarat, Dhirajlal Hirachand Ambani popularly known as Dhirubhai was born in Chorwad district of Gujarat, India on December 28, 1932 (Dhirubhai Ambani - End of an era, 2009). He was a mature and intelligent boy.

Secondly, it is the achievements of the successful people that gives inspiration and motivation to the younger generation for more new innovations. One cannot ignore the fact that it is the failures that make the ordinary lives of great people extraordinary. But it is their achievements that draw people to look into their lives do closely to draw inspirations from. For example, even though Edison was thrown out of his class citing poor intellectuals, he went on to become a great scientist. Similarly, Abaraham Linclon failed miserably in his business and other ventures before going on to become one of the greatest leaders of the world and most influential President in American history. The point here is that we know the past of these successful persons only because they rose to become successful person and leaders in this world at some point of their lives. It is their achievements that took us to go into their past.

He would prefer to work rather than attend school lessons. Once when his mother asked him if would help his father earn money he replied to her saying "Why do you keep screaming for money? I will make heaps of money one day".

Dhirubhai had sharp business acumen and was an adventurous person.

By the late 1980s the Reliance group was one of India’s most influential and profitable concerns. However, the phenomenal growth of Reliance owed as much to Ambani’s acumen as to the ease with which he was able to get official rules and regulations - including import tariffs - introduced, amended or scrapped in order to undercut his rivals and push his own business interests. His methods earned him many bitter enemies in India’s corporate world. Ambani nevertheless forged ahead, cultivating fiends in virtually every Indian political party and managing the media in such a way that critical stories about Reliance’s unconventional business methods seldom made it into the newspapers.

But more than this in-born trait, there were three characteristics that set Dhirubhai apart in the conservative world of Indian business.

First, his exceptional risk-taking potential that was far greater than his other business competitors.

The number of revolutionary precedents set by Shri Dhirubhai Ambani is legion. His unique vision redefined the potential of the Indian corporate sector as he challenged conventional wisdom in several areas. He was probably the first Indian businessman to recognize the strategic significance of investors, discover the vast untapped potential of the capital markets and channelize the same for the growth and development of industry. He was supremely confident that finance would never be a constraint in executing his projects because, as he said proudly, Indian investors would provide him with the necessary resources. And the investors never let him down.

He was a born risk-taker and thought about taking managed risks. It is his risk-taking capacity that aided him when he ventured into textile manufacturing within a year of buying out his original partner in the yarn business.
Dhirubhai visualized the growth of Reliance as an integral part of his grand vision for India. He was convinced that India could become an economic superpower within a short period of time and wanted Reliance to play an important role in realizing this goal. His actions were inspiration for others. Whatever he did became a standard for others to follow. His sterling leadership qualities, remarkable foresight, uncompromising pursuit of excellence, humility, prodigious capacity to motivate and trust people will continue to guide and inspire future generations.

Second was his understanding that business is nothing but the job of networking with people and considered it as web of relationships and obligations.

Thirdly was his proactive nature which gave him a competitive edge over his competitors.

So, apart from the dream schools, there will be 4-5 schools where I feel have a good competition to get an offer, which would depend a lot on my GMAT. I have got a tentative list of almost 12 schools in this category but have to dig around a lot more before finalizing the FOUR. Other than this, I am going to apply for ISB and NUS in Asia.

He always had a ready measure to react to the Government policy unlike his contemporaries His capacity to "manage the environment" was responsible for the growth and development of Dhirubhai and his organisation.

Dhirubhai grew up to be the founder of Reliance group of industries which today is multibillion dollar company and was the first Indian company to make it to the Fortune 500 list of the world's largest corporations and was listed by Forbes as the 138th riches person in the world in 2002 (The World's Richest People, 2002).

Dhirajlal Hirachand Ambani, popularly known as Dhirubhai Ambani was one India's greatest visionaries and iconic business tycoons. He was the founder of Reliance Industries Limited (RIL) which is now ranked among the world's top 500 companies in term of the revenue it generates. Dhirubhai's rags-to-riches story remains one of the most amazing stories of corporate India and is an inspiration to the youth of our nation.

Dhirubhai relied on networking and building relationships and this is why he managed to motivate thousands of people to invest in the stocks of reliance at a time when he needed money to expand. In addition to that he was a simple man who made simple ideas into big business ventures.

Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Reliance is India's third-largest group after Tata and A.V. Birla It was also the first Indian company to successfully tap the Global Depository Receipt (GDR) market in 1992. It is also the only Indian company to raise 50 and 100 year bonds in the U.S. debt markets. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics.

His named his first textile brand "VIMAL" which was the name of his brother's son and converted it into a household name for clothes (Dhirubhai Ambani - End of an era, 2009).

Company Information:

Dhirubhai Ambani started his first company Reliance Commercial Corporation in 1958 as a trading and export house. The company was started with an initial investment of Rs.15000 (300USD). They had rented an official space of about a room of 350 square feet in Narsinathan Street in Mumbai, India (Book review of Dhirubhai Ambani, 2009).

After this incident, many questions were raised by his detractors and the press. Not many people were able to understand as to 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 billion 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. The interesting factor was that 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.

It had three chairs; one table and a telephone (Mcdonald, 1999, p23).The business traded into spices and imported cotton fabrics.

In 1966 Dhirubhai started his spinning mill in Naroda, Ahmedabad. It started as very small venture with just 20 people who did not have any formal training in manufacturing.

In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures. It was rumored 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 steady growth with dedicated efforts resulted in a record sales of 9 million rupees in 1967 yielding a profit of 1.3 million rupees which was ploughed back into the company (Macdonald, 1999). After a decade of manufacturing, Reliance had a turnover of Rs. 680 million and profits of over 100 million (Mcdonald, 1999, p28).

Today Reliance Group of Industries has assets valuing over 60 billion dollars with annual profits of over 45 billion dollars (Thakurta, 2003).

He founded Reliance Industries in 1966, and as of 2017, the company has over 250,000 employees and provides almost 5% of the Central Government's total tax revenue. As of 2012, Reliance Industries was listed in the top 10 Fortune 500 list of world's biggest companies by revenue.

It has now actively expanded into exploration and production of oil and gas, to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals, synthetic textiles, fabrics, communication, energy, infrastructure entertainment, media and telecommunication (Tripathi, 2004).
Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes. But this journey was a combination of courage and moral leadership molded with ethics and principles as the foundation of the infrastructure of the Reliance Empire. Dhirubhai grabbed every opportunity that came his way and built Reliance to a Rs. 620 billion company till the time of his death.

After the death of Dhirubhai in 2002, the company is being effectively managed by his two sons, Mukesh and Anil Ambani.

Source: Reliance group, viewed on 13th August 2010

Entrepreneurial process:

Identifying opportunity:

In 1958 Dhirubhai along with his partner Chambaklal Damani started with a small office in Mumbai with an initial capital of Rs.15000 i.e.300USD (Thakurta, 2003).). His company Reliance Commercial Corporation dealt in the trade and export of spices and fabrics.

Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century".

His constant risk taking habits was damaging the partnership relations and in 1965 Chambaklal Damani decided to part ways as he was not confident of Dhirubhai's risk taking nature (McDonald, 1999 p26).
Finally, I have developed a strategy for choosing the schools. It is very similar to the recruitment process that is generally followed in all the institutes in India. I am going to have two Dream B-Schools and in terms of priority it is going to be Stanford GSB and Hass Berkeley. I am passionate about both of these B-Schools. In fact, they are the only two universities that I have visited on my USA trip last year. Honestly, Stanford GSB has been always been my only unchanged and permanent love because somehow I feel deeply connected to it and I feel no matter what, Stanford can understand me and my aspirations. I am going to go full guns loaded to it. In fact, I got in touch with an alumnus, who has assured me of helping to develop my profile for the GSB. While interacting with him for last couple of months, I found that we have a lot of similarities and when I approached him with the idea of helping me out, he instantly said yes.

Developing the concept:

After having traded in the fabric business for years Dhirubhai sensed an opportunity in the textile industry to have high disposable incomes which encouraged Indians to buy better and expensive clothes, Ambani sought and received the necessary clearances to manufacture cloth from polyester fibre (Tripathi, 2004, p 418). Within a year of splitting with his partner, Dhirubhai decided to take Reliance into manufacturing and backwardly integrate his business in order to exercise advantage of self production rather and imported goods (Krishnamurthy, 2006).

In his private life, Dhirubhai fulfilled every role and responsibility with aplomb. He was a caring husband, a loving father, an indulgent grandfather and a loyal friend. He devoted a great deal of time and energy to his children's learning and to the development of their personalities.

For this he knew he had to invest in spinning mills for production of yarns.

Determine the required resources:

Dhirubhai knew he wanted people who would be trustworthy and hardworking. He had to recruit and so he spread the word around that he was looking for all his friends who worked with him during the early ages of his employment in Besse & Company in Aden (McDonald, 1999, p28).

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.

Most of his networking came useful and he managed to employee as much as 20 people for his factory. All these were his friends and people he knew would help him grow.

He spent the money he had made from his trading business and had a simple factory built in Gujarat in 1966 (Book review of Dhirubhai Ambani, 2009).

Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling bhajias to pilgrims in Mount Girnar over the weekends. He moved to Aden, Yemen after completing his matriculation at the age of 16. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.

He installed four knitting machines, and appointed his brother as plant manager.

Acquire the necessary resources:

Dhirubhai had his product, place and people ready. He had acquired the land and hired the people on trust basis.

So our homie, who qualified in the first 50 for Stanford’s Reliance Dhirubhai Fellowship, agreed to share his essay on - How do you aspire to shape your country’s future?Here is the sample for you with necessary deletions.

He treated them like family and so there was a very cordial relationship that existed. Dhirubhai took extensive loans amounting to 1.5 million rupees from banks to start of his factory and buy the machines and yarns he required (Mcdonald, 1999, p32). He impressed the banks with the quality of machines he ordered and the market knowledge he possessed.
Sensing an opportunity in the textile industry - higher disposable incomes were leading to Indian buying better, more expensive clothes-Ambani sought and received the necessary clearances to manufacture cloth from polyester fibre. He opened his first textile mill in Naroda near Ahmadabad in 1966 and then concentrated on quietly building up his business. Vimal, the textile band he established, flourished and remains a household mane in India today.

Implement and manage

First year of the business was very hard. The fabric manufactured was not selling in the markets. Dhirubhai was determined to sell. All the people use to work at mill from morning 7 to 3 in the afternoon and then in the evening tour the local markets, trying to convince the shopkeepers to stock the fabrics of Reliance (Thakurta, 2003).

A Hindi film said to be loosely inspired by the life of Dhirubhai Ambani was released on 12 January 2007. Guru, directed by film maker Mani Ratnam, cinematography by Rajiv Menon and music by A.R.Rahman shows the struggle of a man striving to make his mark in the Indian business world with a fictional Shakti Group of Industries. Guru stars Abhishek Bachchan, Mithun Chakraborty, Aishwarya Rai Bachan, R. Madhavan and Vidya Balan. Bachchan plays Gurukant Desai, a character implicitly based on Dhirubhai Ambani. The character is popularly known as "Gurubhai", similar to the real-life "Dhirubhai". Mithun Chakraborty portrays Manikda who bears an uncanny resemblance to the real life Ramnath Goenka, Aishwarya Rai portrays Kokilaben Ambani and Madhvan portrays S. Gurumurthy, who gained national fame twenty years ago, spearheading virulent attacks against the Reliance group in one of India's bloodiest corporate wars.

All the money they made at the end of first year was ploughed back into the business for expansion. End of second year resulted in substantial gains through which Dhirubhai was able to pay back some of his loans.
Secondly, on GMAT preparation front, I am spending a lot of my time with the OG. I am bit terrified but I am confident. I feel I have got a good grasp on SC and CR now and have to work a bit more on the RC front. Quant section is never a problem for me as I generally score on the range of 47-51 on it. So, all the focus is on the verbal front. I will be taking the tests from tomorrow regularly to judge my course. I am yet to take a date and probably, I will wait for the Reliance Fellowship results because if I happen to be in the 5 finalists, then I can get a GMAT voucher for them. So, as of now, anytime July mid will be the GMAT date.

Dhirubhai launched his own brand 'VIMAL' for the fabrics he manufactured and soon through the efforts of extensive advertising and promotion VIMAL had become a household name (Dhirubhai Ambani - End of an era, 2009).

Extensive marketing of the brand in the interiors of India made it a household name. Franchise retail outlets were started and they used to sell "only Vimal" brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance Textiles' Manufacturing unit.

Harvest the Venture:

With his vision and determination Dhirubhai was able to harvest his venture into a successful business. By 1977 Dhirubhai had set up a huge manufacturing plant and had further expansion in mind.

Firstly, there is no doubt that when someone achieves something great in any field, it shows a new path to the whole world. Sometimes, these paths are so strong that they change the course of the current world. For example, let us consider Abraham Lincoln. He changed the course of American history with the abolition of the slavery. It is his greatness that people in America are better people than anyone in this world today. Similarly, Mahatma Gandhi changed the course of Indian history with his beliefs on truth and non-violence. It is due to his sheer will that made the whole country run for the struggle of Independence unanimously. People like Dhirubhai Ambani led the Indian business to a new level by bringing Economic Liberalization in the country in early 1990’s. Narayan Murthy has led the country into a new blend of truth and ethics while creating one of the most successful IT services companies of thew world - Infosys. People like Thomas Elva Edison gave a new direction to the lives of people and science with his invention of Electric bulb.

In October that year he decided to raise funds not from banks and financial institutions but from the public. Reliance launched its IPO and was listed at the Bombay Stock exchange in 1978 (Mcdonald, 1999, p 41).
Dhirajlal Hirachand "Dhirubhai" Ambani (28 December 1932 - 6 July 2002) was an Indian business tycoon who founded Reliance Industries in Bombay with his cousin. He appeared in The Sunday Times top 50 businessmen in Asia. Ambani took Reliance Industries public in 1977 and by 2007, the combined fortune of the family was $60 billion. Ambani died on 6 July 2002.

Dhirubhai brought the equity cult in the country. Dhirubhai appealed to the local people that each shareholder would grow as Reliance grew and people had the faith in him (Dhirubhai Ambani: in memoriam, 2003).
Firstly, every people have certain dreams but very few actually dare to go to fulfill them. The people who follow their dreams change not only their life but also people around them significantly in future though they may have to face obstacles in the short-term. For example, Dhirubhai Ambani went through all the his initial painful years sacrificing a lot of conventional life to build the largest private company of India, employing 60000 people today and benefiting the economy of the country.

Between 1980-1985 the number of shareholders increased from one million to about four million most of which were the middle class people (Tripathi, 2004, p 420). With this investment he set up another plant to manufacture polyester filament yarn and was producing more than 50000 tonnes from both the plants.
Dhirubhai H. Ambani, the Founder Chairman of Reliance Group, is credited to have brought about the equity cult in India in the late seventies. He is regarded as an icon for enterprise in India. A man far ahead of his times, he epitomized the dauntless entrepreneurial spirit 'dare to dream and learn to excel'. He dared to dream on a scale unimaginable before in Indian industry.

Expanding to new horizons:

Once Dhirubhai visited his village and realised he was not able make phone calls as there was no network. He asked his officers to arrange for a local connection and was informed that the villagers could not afford mobiles.

In an unauthorized biography of Dhirubhai Ambani, published in 1998 by Hamish McDonald with the title The Polyester Prince, all his political and business conquests are outlined. HarperCollins didn't sell the book in India, because the Ambanis threatened legal action. In 2010, an updated version went on sale in India, called Ambani and Sons; there has been no legal action against the publisher so far.

He immediately thought of a new idea of venturing into to telecom sector. He had a vision that the poorest person in the country should be able to afford a mobile phone. At a time when India was only exposed to GSM connections, Dhirubhai conceived the idea of CDMA connections which would not have the handset flexibility but definitely be cheap and easy to afford for the lower income group (Tripathi, 2004, p 421).
This new star, which rose on the horizon of the Indian industry three decades ago, remained on the top until the end by virtue of his ability to dream big and translate it into reality through the strength of his tenacity and perseverance. I join the people of Maharashtra in paying my tribute to the memory of Ambani and convey my heartfelt condolences to the bereaved family.

Reliance Telecommunication created a spur in the Indian telecom industry. While major players like Vodafone and Airtel were enhancing their infrastructure by creating towers for network, Dhirubhai went the other way of establishing wires and cables in the ground in order to provide cheaper call rates.
Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionised capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s.

By having established the cable wires Reliance was able to offer tariff plans that offered free calling within Reliance networks. This really gave his competitors a run for their money as people started moving from their existing connections to Reliance for the cheaper rates it was offering.
The growth of Reliance Industries was unprecedented and it went from a turnover of Z 70 crore in the mid-1970s to being a 75000 crore empire in 2002. For the further expansion he raised a great deal of money by issuing six series of convertible debentures and then converting them to equity shares at a premium.

In less than three years the Indian population of people having mobiles expanded to over 40% (Tripathi, 2004, p 421). And a majority of this were the lower middle class people who now had access to cell phones and connectivity.
Though Reliance was a profitable enough concern, Ambani quickly calculated that further expansion - especially into related sectors - would depend on access to a cheap source of capital. Rather than turning to the banking system. He decided to tap Bombay’s fledgling stock exchange, pioneering an equity cult that was to transform the cooperate financing system in India. Reliance’s initial public offering in 1977 saw 58,000 investors buying shares; eventually, the number of Reliance shareholders was to climb to some three million.

Dhirubhai subsequently diversified into chemicals, gas, petrochemicals, plastics, power and financial services.

Major company issues with recommendation:

Dhirubhai was often held guilty of having carried out unethical measures in order to influences political parties to bring in reforms that would benefit his business, however his thought was that anything which assisted his business to grow should be looked as progressive efforts.

His business was accused of having manipulated the stock prices at a time when his business shares were being short sold in the market by a group of brokers.

In November 2004, Mukesh Ambani in an interview, admitted to having differences with his brother Anil over 'ownership issues.' He also said that the differences "are in the private domain." After the death of Dhirubhai Ambani, the group was split into Reliance Industries Limited, headed by Mukesh Ambani, and Reliance Anil Dhirubhai Ambani Group (Reliance ADA Group), headed by Anil Ambani.

Little did they know about Dhirubhai's ability to fight back who managed to procure most of the shares these brokers sold and demanded delivery of them which showed the true picture of the ugly game that was being tried to be played on his company (Biharkar,2006).
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.

His competition with the Wadias, who were quite established at a time when Dhirubhai was just growing, has also been a critical incident in his entrepreneurship process. Dhirubhai requested the Bombay Dyeing group to buy yarns from him and work together, to which the Wadias refused (Mcdonald, 1999, p58).

I guess starting early on all fronts will help me getting things proper at the right time and not rush. I am planning got decide on my recommenders also soon. I wrote my first essay with the Reliance Fellowship essay and I feel to get a good essay, one has to bring himself inside out. Though I always knew, what and how I think about my India, but this exercise showed me my shadow in the mirror in true sense. I am really excited about the application season and I hope it is going to be an amazing ride to hidden revelations about myself. One thing for sure is “The mantra for writing essays should be bringing one’s INSIDE OUT”. The more one knows and reveals him in the essays, the more comfortable and confident he would be with the essays.

This instigated Dhirubhai to become even bigger so that the Wadias would one day come to apply as suppliers to him. There was no looking back after that. Dhirubhai put his heart and soul into his work and used all the influences he had to help him grow and become one of the largest manufacturers of yarns.
The secret of the success post-1986 is buffeted by the transition of power from the father to sons Mr. Mukesh Ambani and Mr. Anil Ambani with a clear cut division of responsibility between the two under the supervision of Dhirubhai Ambani.

The paralysis attack that he suffered in 1986 before his death in 2002 was a major setback to his business and it is then that both his sons came into management and running of the organisation (Thakurta, 2003).

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Conclusion:

A rag to riches is the term that truly defines Dhirubhai's life story. From an initial investment of a mere Rs. 15000 in 1958 to start a trading house, followed by the setting up of his own manufacturing facility in Gujarat in 1966, Ambani has managed to build up a synthetic yarn, textiles and petrochemicals empire that is today the third largest private sector corporation in India.

His people trusted Dhirubhai to have the Midas touch and knew he could convert anything to profitable venture.

Dhirubhai Ambani is credited with revolutionizing capital markets in India by attracting millions of retail investors in a market till then dominated by financial institutions. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. Due to his efforts and with the help of innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian company to raise money in global markets. Reliance also became the first Indian company to feature in Forbes 500 list.

To all aspiring small-time entrepreneurs, he has become a benchmark they aim at. With each succeeding day, the legend to Dhirubhai Ambani continues to gather popularity.

One of the main reasons for his success was inspiration along with hard work and enthusiasm and spirit of 'can do and will do'.

Discuss the extent to which you agree or disagree with the opinion stated above. Support your point of view with reasons and/or examples from your own experience, observations, or reading.

He believed in dreaming but dreaming with eyes open.

dhirubhai picture.jpg

Source: Reliance group of Industries, viewed on 14 August 2010

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