The founder of Reliance Industries Ltd., Dhirubhai Ambani, was born in 1932 in Chorwad village, Gujarat, India to a middle-class family. His father worked as a school teacher. Despite initially failing his school exams, Dhirubhai managed to make money as a child by selling snacks to pilgrims during weekends. At the age of 17, he left his hometown and started working for A. Beese & Co. in Aden (now Yemen), where he served as a petrol pump attendant for Shell. After nine years abroad, he returned to India in 1957 with the aspiration of establishing his own business.
He established a small trading venture called Reliance Commercial Corporation. Initially, he traded spices and later expanded to yarn, polyester, and petrochemicals. Additionally, he entered the fields of oil and gas refining and exploration, ultimately creating a multibillion dollar corporation. Starting with just $350 (15,000 Indian Rupees), he formed a trading house and quickly became the largest polyester trader in the country. In 1977, the company became publicly traded. He successfully persuaded the middle class community to invest in the company and rewarded them. Within a time period of 25 years, he achieved a place for his company on the Fortune 500 list.
The Reliance group’s growth history is unmatched in the Indian industry. At present, the company’s turnover accounts for around three percent of the Indian GDP (Krishnamurthy, 2007). Dhirubhai, the founder, followed a simple philosophy: “Think big, Think fast and think ahead; Ideas are no one’s monopoly” (Krishnamurthy, 2007, p. 37). Throughout his 69 years of life, he consistently demonstrated a remarkable leadership style. Despite lacking any formal management or technical education, Dhirubhai showcased his unique and highly effective leadership approach through traditional means.
This leader’s business approach, which greatly contributed to his success, has made me a fan. His exceptional ability to foresee the future with his visionary style not only had a significant impact on the textile industry but also on various sectors in India. Krishnamurthy (2007) cites some of his notable leadership qualities and styles as follows:
- Enlisting others: He always introduced investors as part of the Reliance Family.
- Encouraging efforts: He believed that supply creates demand.
- Constantly changing your orbit: He emphasized constantly adapting and evolving.
In summary, this leader encountered several major issues throughout his journey.
Despite his modest background and job as a petrol pump attendant, Dhirubhai, son of a school teacher, held various entry-level positions before venturing into business. However, his path to success was not without difficulties. At that time, setting up a trading enterprise necessitated acquiring a government license, which was under the control of influential politicians. Despite facing numerous challenges, Dhirubhai remained resolute in obtaining the required permit.
Despite encountering difficulties, he was a courageous individual who established Reliance at a time when most companies in India were government-owned and private companies faced unfavorable treatment from the government. In 1977, he faced challenges obtaining a bank loan to expand his textile mill in Ahmadabad. However, instead of losing hope, he made the decision to go public, allowing middle-class investors to invest in his company. These investors provided him with sufficient funds and later on he rewarded them for their support (Krishnamurthy, 2007).
Ambani had a unique management style that combined the American entrepreneurial approach with an emphasis on cutting-edge technology inspired by Japan (Evancarmichael, 2008). In June 1998, he received an exceptional honor by being awarded the “Dean” medal from the Wharton School of the University of Pennsylvania for his outstanding leadership. This distinguished recognition made him not only the first Indian but also the 24th individual worldwide to receive this prestigious accolade (Wharton School of University of Pennsylvania, 1999).
In the year 2000, 1998, and 1996, Dhirubhai Ambani was recognized as one of the “Power 50 – the most powerful people in Asia” by Asia week magazine (Reliance Industries Ltd., n.d.). He also received the title of “Man of the 20th Century” from the Federation of Indian Chambers of Commerce and Industry (FICCI) (Reliance Industries Ltd., n.d.).
References: Dhirubhai Ambani rags-to-riches business tycoon (2008). Message posted to http://rajesshcherian.wordpress.com/2008/11/15/dhirubhai-ambani-rags-to-riches-business-tycoon/ Krishnamurthy, A. G. (2007). Dhirubhaism. New Delhi.
