M.B.A.-II

MINUTES OF PRESENTATION 1. Founder’s Biography 2. World of Reliance 3. Sad Incidence 4. Ownership War 5. Reasons 6. Settlement 7. Impact of issue 8. Conclusion. (Our Comments)

AMBANI FAMILLY

LATE. DHIRUBHAI H. AMBANI Founder Chairman, Reliance Industries Limited, India December 28, July 6, 2002

Some Facts At the age of 17 worked for A. Besse & Co. Ltd., the sole selling distributor of Shell products. In the year 1958 started his first company, Reliance Commercial Corporation, a commodity trading and export house.

 In the year 1966 started the textile mill in Naroda, Ahmedabad.  In the year 1975, a technical team from the World Bank certified that the Reliance textile plant was "excellent by developed country standards."  In the year 1977, the company went public.

Today, the Reliance Group has one of the largest family of shareholders in the world. With an investment of over Rs. 26,000 Crore (US$ 9 billion) in petroleum refining, petrochemicals, power generation, telecommunication services and a port terminal

Total Revenues More than 1,00,000 Crore (In 2005 $ 20 billion) In year 2005 revenue growth 29% Profit of Rs 12,500 crore (Before tax) Net profit of Rs 6,200 crore Exports of Rs 15,900 crore

GROUP COMPANIES 1. Reliance Industries Limited 2. Reliance Capital Limited 3. Reliance Capital Mutual Fund 4. Reliance Industrial Infrastructure Limited 5. Reliance Energy

GROUP COMPANIES 6. Reliance Telecom 7. Reliance Infocomm 8. Reliance General Insurance Co Ltd 9. Reliance Life Sciences 10. Indian Petrochemicals Corporation Ltd

1.Reliance Industries Ltd. India's largest private sector company

2.Reliance Capital Limited 3.Reliance Capital Mutual Fund

4.Reliance Industrial Infrastructure Limited

5.Reliance Energy

6.Reliance Telecom

7.Reliance Infocom

8.Reliance Life Sciences

9.Reliance General Insurance Co Ltd

10.Indian Petrochemicals Corporation Ltd

Some Facts About Reliance Reliance Group Revenues are nearly 3.5% of India’s GDP 1 out of 4 investor in India is a Reliance Shareholder Reliance Group contribute 10% of Indian govt. indirect tax revenue

Reliance Group contribute 6% of Indias Total Exports Reliance Group contribute 17% of the profit of entire corporate sector in India Reliance is the first and only fortune 500 global company of India

SAD INCIDENCE On June 24,Dhirubhai Ambani, suffered a cerebral stroke, lost consciousness, and lay near death in a Bombay hospital

The Young Ambanis Mukesh Ambani Anil Ambani

The New BOD Chairman & MD: Mukesh Ambani Vice Chairman & MD: Anil Ambani & Six Directors and Three Company Secretaries

Ye Khurchi Meri Hai…….

Mukesh Ambani was on CNBC news Channel. Question From Reporter Is Their Any Coral Between you and Anil about any problem? Answer From Mukesh Ambani Yes, OWNERSHIP ISSUE IN RELIANCE

Battle Start from here. War taken 7 months to Solved. Between 7 Months, They Forgot that they are BROTHER.

Traveling of 7 Months Nov. 22 Mukesh tells employees Dhirubhai had settled issu during his lifetime, Anil turns to Mother Kokilaben to settle dispute. Nov.23 Mukesh says CMD’s word is final. M.L. Bhakta resigns from Reliance Board.

Nov Reliance’s directors resign from Board. Dec. 5 Mukesh offers Anil. Reliance industry,RCL,and cash. Dec. 6 Anil Rejected offer. Dec. 6 Newspapers report that Mukesh got 12% Sweat Equity in RIC.

Dec. 20 Amitabh Jhunjunwala resigns as RIL.Treasurer. Dec. 23 Mukesh Ambani gives up Sweat Equity in RIC. Dec. 27 RIL board clears Rs.3,000 Crore Buyback Shares.Anil opposes this. Jan. 3, 2005 Anil Resign from IPCL.

Jan. 7,2005 Finance Minister tells Ambanis to settle dispute. Jan. 19, Jhunjunwala’s resignation accepted,Four others withdraw letters. Mar.9, K.V. Kamath complets Valuation of Reliance. April 8, Anil Complains that his Phones are being Tapped

And finally June,18,2005 MOTHER KOKILABEN ANNONCED THE SETTLEMENT OFTHE DISPUTE BETWEEN HER TWO SONS.

REASONS Dhirubhai’s death without making the will statement. Authority Division. More belief on other persons. Poor corporate Governance.

Settlement June 18, 2005 News Every where. Finely Mother Kokilaben settle the dispute between two sons. With the help of Mr. K.V. Kamath, a family friend and Managing Director of ICICI India’s bank. WHAT WAS IT……………?

EMPIRE BROKEN

PROPERTY DISTRIBUTION Mukesh 30% Anil 30% Kokilaben 30% Sisters 10% (Nina Kothari & Dipti Salgaokar)

MUKESH ANIL RELIANCE INDUSTRIES LIMITED (RIL) INDIAN PETROCHEMICALS CORPORATION RELIANCE ENERGY LTD.(REL) RELIANCE CAPITAL LTD.(RCL) RELIANCE INFOCOMM.(RIC)

Mukesh Ambani’s Reliance Group RELIANCE INDUSTRIES LTD. TURNE OVER Rs. 73,164 CR. NET PROFIT Rs.7,572 CR. RESERVE Rs.36,280 CR. EPS Rs MARKET CAP. Rs.11,996 CR. INDIA PETROCHEMICAL CORPORATION TURNOVER Rs.9,386 CR. NET PROFIT Rs.786 CR. RESERVES Rs.2,672 CR. EPS Rs MARKET CAP. Rs.4,149 CR

Anil Ambani’s ADAE RELIANCE ENERGY LTD. TURNOVER Rs.4,131 CR. NET PROFIT Rs.520 CR. RESERVES Rs.4,834 CR. EPS Rs MARKET CAP Rs. 11,996 CR RELIANCE CAPITAL LTD. TURNOVER Rs.296 CR. NET PROFIT Rs.106 CR. RESERVES RS. 1,310 CR. EPS Rs.8.31 MARKET CAP. Rs.4,348 CR. RELIANCE INFOCOMM TURNEOVER Rs. 5,387 CR NET PROFIT Rs.51 CR

its stock fall by 3.4% in one day The group's market capitalization dropped by $550 million Six directors of Reliance Energy quit Loss of synergy value.

GRGDD

F.M. Mr. P. Chidamrabam said that “it will effect on indian business” Lose the experienced man power in top level management.

Losing Faith among Shareholders

NOW MUKESH KNOWN AS…… STRENGTHS Phenomenal project implementation skills & ability to think big. Never say die, he has spirit like father. WEAKNESSES Over Dependable on some people. As per Anil’s view whatever CHAMCHAS said it is final. OPPORTUNITIES Huge growth potential in refining business with healthy margins. Healthy cash flows will allow him to think even more ambitiously. THREATS Lack of Professionalism in his group may prove to be costly. Reliance as a pure play becomes susceptible to industry cycle.

Now Anil Known as…… STRENGTHS Huge ability to raise the fund. Possesses a strong marketing orientation Said to be very good at handling the govt.& Politicians- his status as M.P. will only make things easier. WEAKNESSES Limited exposure to project implementation. Limited Technology Skills. Said to be very impulsive in nature.( like ego) OPPORTUNITIES His Three business TELECOM,POWER & FINANCIAL SERVICES- are all on a high THREATS Eroding levels of customer faith in RIC Close ties with the SAMAJWADI PARTY & AMITABH BACHCHAN may cramp his style under present regime

Coming soon By Reliance Double the Jamnagar refinery’s capacity to 60 million tonnes per year with a Rs. 25,000 cr.investment. Expand oil and gas exploration and production with a Rs.17,000 cr. Investment. Expand polyester capacity by adding a new factory with a Rs.7,400 cr. Investment. Explore 10 new oil & gas discoveries. 700 Mails all over INDIA.

Conclusion ( Our Comments) Today the ultimate aim of the business is the only profit. No relation exist when the money comes amidst. Reliance was too an example to illustrate the founder of any of the companies to complete the will before they are dead. Until you make loss to others, you cannot make your own profit. If you want to survive,addict to betray deceive and flirt.

Let’s hope……….