No, Mukesh Ambani is not retiring. not yet anyway. India’s and Asia’s richest businessman may have handed over the reins of his empire’s telecom and data business, Reliance Jio Infocomm, to his eldest son Aakash, but it is by no means a sign of his exit from the active management of his companies. There is no signal.
He continues to be the chairman and managing director of not only the mother ship, Reliance Industries Ltd., whose cash flow inevitably outstrips other diversifications, but also the chairman and MD of Jio Platforms, the holding company that controls all digital assets of the group. controls businesses. and the majority owned Reliance Industries.
But by not only handing over the reins of Reliance Jio Infocomm to his eldest son Akash, who has taken over as its chairman and managing director, and stepping down from the company’s board, he has set a clear succession plan in motion.
Media reports suggest that Akash’s twin sister, Isha Ambani, who is currently a director on the board of Reliance Retail Ventures, the retail arm of the Reliance Group, will also be promoted to the top post in the retail business soon. And youngest son Anant, who is both on the board of Jio Platforms, the holding company controlling the digital business, as well as Reliance Retail Ventures, will reportedly be given the mother ship’s ‘O2C’ (oil to petrochemicals) business. , Reliance Industries, as well as its new energy initiatives.
Mukesh Ambani created different growth paths for his children, by giving them clear charge of the businesses they run, and by ensuring that they were well supported by a group of professionals for the day-to-day management of the businesses. Granted, Mukesh Ambani ensured that history does not repeat itself.
In 2005, when his father, Dhirubhai Ambani died suddenly, without leaving a will, a bitter succession battle ensued between Mukesh and his younger brother, Anil. Ultimately the settlement, brokered by his mother but negotiated by several powerful bankers and politicians, split the group’s assets more or less equally between the two. Mukesh gets ‘Heritage’ refining and petrochemical business; Anil got telecom, financial services and infrastructure companies.
The fortunes of the brothers changed later. Mukesh’s fortunes have seen huge growth, while the Anil Ambani group companies are now worth more than a fraction of their lifetime peak market capitalization. 1,65,000 crores.
As the Reliance saga shows, securing a legacy is only half the battle. Maintaining it, and growing it, are entirely different challenges. Mukesh Ambani has made sure that history will not repeat itself in his empire. But shareholders will wait to be happy. Mukesh Ambani wishes Gen-Next success as he begins managing the companies built by his grandfather and father.