Showing posts with label Ambani. Show all posts
Showing posts with label Ambani. Show all posts

Monday, February 14, 2011

Dhiru and sons- a chapter in modern mythology

Dhiru Mahadev started his career as an employee in one of the many British companies located in the coast of Aden. Although a humble beginning, Dhiru was always poised for bigger challenges in life. A few years into his career he met the two people who would become his working partners in future.

The first person was Brahm Dev, a man of impeccable knowledge and research experience. His intelligence was supreme and people felt he thought with not one brain, but four! The other was Vishnu Baba, an operations expert who knew to keep any plant running irrespective of any form of trouble, be it from employees or management.

So when they formed their venture ‘Hind Reliance’, Brahm took charge of R&D and was responsible for creativity and innovation, while Vishnu took charge of operations and plant management. Mr.Mahadev, being the biggest contributor in the venture, was responsible for final goods delivery and overall decision making. So he was nicked ‘Param’- meaning supreme.

Param meanwhile got married to Parvatiben, a good looking woman with a strong Gujrati background. The couple were blessed with two sons. The elder one was Ganesh Mahadev and the younger was Karthik Mahadev.

Ganesh was born with a speech disability. He was smart but would not talk. This made him very shy and tied down to his own world of books and stories. Very soon his friends started calling him Mook-esh (‘mook’ meaning dumb in Hindi). Karthik on the other hand was a very handsome extrovert. He was inclined to movies and show biz right from a young age. At one point he felt that his name Karthik was so not reflective of his ‘modern’ nature that he re-christened himself ‘Anil’ after his favourite star in Bollywood Anil Kapoor.

As years went by, Dhiru Mahadev’s company became big and it looked like its employees could form a nation of their own. Dhiru would often quip to his wife, “Sitting in the twenty fifth floor of my office in Nariman Point, I feel like I am on top of some Kailash mountain and can see the entire world from a bird’s eye view.”

Mookesh and Anil went to the best school in the country and after completing their schooling in India, they were sent away for graduating in business studies from the US. When it was time for his sons to return after completing their graduate studies, Param found that he was a deeply worried and concerned man. He feared that bookish education in the US would be a handicap for his sons to run Hind Reliance. He feared that their decision making abilities will be affected by their Americanised perspectives in business, especially in a completely Indian company like theirs.

So he decided to test them.

One day after they were back in India, Param called his wife Parvatiben and their sons Mookesh and Anil to his study. There he was sitting with his close friend Mr.Narad Muni. Narad was a shrewd businessman who spent most of his life travelling across seas and shores for running his business. When they were ready, Param spoke.

“Sons, you are both very adorable, and we love you both. You have completed your education and have made yourselves eligible for bigger roles now. However, I would like to test you to know who among you is better suited at following me.”

“I have transferred Rs.1,00,00,000 to both your accounts. Now I will give you a maximum of one month to complete this assignment. Go and experience life to the fullest! Narad uncle will help you get your air tickets and all ready.”

True to their respective selves Mookesh remained sombre and unperturbed while there was a distinctive glint in Anil’s eyes. Within two days, Anil was cruising through the waters of Nile, while his elder brother Mookesh was slump on the couch watching Mind Your Language series on television.

Anil booked a Europe tour package that took him to the most exotic of places in the Europe. He cruised on the seas, went bungee jumping, yachting, rowing, and ice skiing and trekking through the Alps. He drank the most expensive liquors and slept with the most exquisite women from across the globe. He drove in the most luxurious of vehicles and interacted with many celebrities worldwide.

Meanwhile, his brother Mookesh preferred to stay indoors than outdoors. Much to the surprise of everyone around him, he went and joined Hind Reliance to help his father in business. In a matter of one week, he learnt the business in and out. By three weeks, he made Hind Reliance a profit of Rs. 50,00,000. Impressed by his effort at running the company, Param declared Mookesh as his successor.

When Anil came back from his tour, he was aghast to see that Mookesh had already been proclaimed winner in a contest that he considered uncompleted. Red faced, with a heavy heart he spoke to his father.

“Dad, you asked us to ‘GO’ and enjoy life. So I went out and experienced the best of everything in the world and came back. I learnt the best practices from everywhere and hoped to implement them in our company. But here I see that in spite of having not stepped outside the city, you have proclaimed Mookesh to be the winner. How unfair is that father?”

Param replied, “Yes, I asked you to experience ‘life’. By joining me at the company, Mookesh proved that ‘Hind Reliance’ was his life. What could have been a better reason to announce him as my successor?”

Not convinced at his father’s judgement Karthik ‘Anil’ Mahadev cried foul, vowed to never join his father’s company and walked out of the Mahadev family house.

Dhiru ‘Param’ Mahadev smiled. His wife Parvatiben cried. Their son Ganesh ‘Mookesh’ Mahadev looked expressionless, but his dreams sore high like a 60 floors tower worth US$2Bn in the heart of Mumbai city!


-Shyam

Friday, December 31, 2010

Ambani & Sons by Hamish McDonald

There is an old saying that goes, 'You cannot be fooled unless you allow yourself to be'. The wisdom in this saying is a corollary to Darwin's famous postulate of 'Survival of the fittest'. However, it is also precisely the same wisdom that justifies every action of Dhirubhai Ambani. For anyone who has read Hamish McDonald's Polyester Prince, this book has limited surprises.

The book can be divided into four distinct parts.

The first part deals with the journey of an ambitious young man determined to make it big on a large stage. It talks loud about the young Dhirubhai who impressed everyone around him with his brilliance, and that helped him seek better life opportunities in the port of Aden off Yemen coast in A. Besse & Co. company. As someone who had realised early in life that one should never depend on someone for very long, Dhirubhai was always on the lookout for new opportunities.

The finest example of his genius in discovering untapped opportunities is the fact that as a junior clerk in Aden he found that the silver content in the Rial (Yemen's currency) coin is more than its exchange value in pounds. However the main reasons for his successful entrepreneurial ventures throughout his life lies in his persistence and ability to execute these ideas converting them into money. Dhirubhai made a few lakhs of rupees by collecting these Rials, melting them and selling the silver ingots at their market price, something that not all junior clerks would dare to do!

The second part of the book deals with Dhirubhai's resolve to set up his company, and his maverick ideas in running the business. A friend notes that Dhirubhai does not go against the law. He makes sure that the law is modified to permit something so that his activity does not classify to be going against the law! Also, a friend recalls hs is words 'Everything that I have done is kept under the ground and a first class fountain has been built over it. No one will find out what I have done'. This is truly aligned to Dhirubhai's ideal that ends justify the means. His active involvement of shareholders in the process of building his vast business empire and unique ability to have right friends in the right places especially in the changing governments deserve special mention in this part of the book, and truly serve as a compulsory lesson for aspirant entrepreneurs and managers.

The third part of this book, although very much mixed with the second part, is my favourite. It is the one that deals with the past of many of the people who are today holders of iconic positions in our country. This is the part that tells us how Reliance and its growth under Dhirubhai is an inseparable element in understanding the present India and its growth in the last three decades. It brings out the past of several of today's national leaders like Dr. Manmohan Singh, Pranab Mukherjee, Murli Deora, Arun Jaitley, Sharad Pawar, Arun Shourie, Ram Jethmalani and some yester-year leaders like Indira Gandhi, Rajiv Gandhi, V.P.Singh, Narasimha Rao and Pramod Mahajan, and their active involvement in the successes and failure of Dhirubhai's business empire. Also important is the role of media baron Ramnath Goenka, his investigative journalist Gurumurthy, Nusli Wadia, Amitabh Bachchan and recently scamster Harshad Mehta. The most notable thing here is the matrix that relates these 'leaders' to the corporate house of Reliance and the mastermind named Dhirubhai Ambani.

The last part of the book, which has potential drama to be dubbed into a Bollywood flick is the one that deals with the last days of Dhirubhai and the feud between his sons Mukesh and Anil after his death. The book clearly indicates Mukesh to be the true Dhirubhai successor, while branding Anil as someone who used emotions to gain his base and has a lot to learn about conducting business successfuly beyond ambitious hopes and false promises.

All in all, the book 'Ambani & Sons' by Hamish McDonald is a definite must-read for anyone who aspires to conduct business in India as it tells the tale of how a young man with no business background managed to build one of the world's biggest corporate houses in a land stricken with neo-socialist policies that undervalues the role of equity and is easily maneuverable by money and power. It also follows the growth of Indian economy amidst license raj, import-export controls and regulations leading to liberalisation in early 1990s. It also talks about the origin and growth of the equity cult and popularity of public stock offerings that is directly attributed to Dhirubhai Ambani. Also it tells us the story of India as a developing nation through the 1980s and 1990s- the dark and bright patches in it, and most importantly about two of the world's richest people today!

Cheers!
Shyam



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