Educational technology ,careers and future : Mukesh Ambani from a Univerty dropout to a business baron

Tuesday, January 8, 2019

Mukesh Ambani from a Univerty dropout to a business baron

Mukesh Ambani son of Dhirubhai Ambani,it is a worldwide known name today. The richest man of India and Richest person out of North America and Europe. Although world knows Mukesh Ambani as a successful businessman today ,but very few know that he has struggled along with his father in early days and to grow business of his father he has to  drop his MBA from Stanford university .


Mukesh Ambani was on 19 April 1957  to Dhirubhai Ambani and Kokilaben Ambani  in Aden,  Yemen when his father used to work there. In 1958 Dhirubhai moved back to India to start business of trade in spices but later turned to textile business and started brand “Vimal”. Mukesh ambani in early days used public transport for going to his schools and college.

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Mukesh Ambani attended Hill Grange High School in Mumbai and got his BE degree in Chemical Engineering from Institute of Chemical Technology (UDCT),Matunga. Mukesh Ambani later enrolled for his MBA at Stanford University. As Dhirubhai planned big for Reliance in 1980  he called Mukesh back to support his business . Mukesh ambani dropped his MBA degree at Stanford and returned India to help his father to grow his business. Dirubhai Ambani always believed that real business skills can be earned through experience not by classroom lectures.

Business Career

In 1980 ,Indira Gandhi was prime minister and Government opened Polyster Filament yarn manufacturing for private sector. Although it was very difficult to get License , Dhirubhai applied for the license and facing stiff competition from TATA and BIRLA , Dhirubhai got the license to help him build the PFY plant, Dhirubhai pulled his eldest son Mukesh out of Stanford, to work with him in the company. Mukesh dropped college and worked for backward integration in Reliance  to generate more revenue and improve efficiency. As per instruction from Dhirubhai Ambani, Mukesh has to report to Rasikbhai Meshwani who was executive director at that time.The company was build from the srach and everybody contributed to company. At the age of 24 Mukesh was given given charge of the construction of Patalganga petrochemical plant when the company was heavily investing in oil refinery and petrochemicals.

Reliance Infocomm and Beginning of
Business empire of Mukesh Ambani

Mukesh Ambani started Reliance infocomm limited now known as reliance communications Limited, in 2002 which was focused on Information and communication only. Reliance launched its nationwide CDMA mobile services with the tag line of ,"Kar lo Duniya Mutthi main" .Reliance started providing CDMA mobile devices with monthly plans at low cost . After the death of Dhirubhai Ambani , both the brothers Mukesh and Anil get into tussle for property as Dhirubhai Ambani left no will behind .Finally family fued was solved with the intervention of their mother Kokilaben Ambani. Mukesh Ambani got Reliance Industries and Petrochemical business while Anil got Reliance infocomm and few other industry.

Mukesh Ambani again touched the milestone by establishing world largest grassroot petroleum refinery at Jamnagar with capacity to produce 660000 barrels per day in 2010. This refinery is integrated with petrochemicals products, power generation, Port and other related infrastructure. 

Reliance provides excellent facility to its employees of reliance family, working at the Jamnagar refinery.

In 2014 Mukesh Ambani addresses 40th annual general meeting(AGM) of reliance industries and announced to spend Rs. 1.8 trillion in next three years and to  launch 4G  services in 2015. Although 4G services were launched with new brand name RJIO Infocomm in September 2016 , Reliance launched 4G mobile with brand name LYF in February 2016. Gradually business of RJIO increased rapidly with aggressive pricing and quality of service .India became biggest data user in the world .Within two years RJIO captured 20 % market share in Indian telecom market.

RJIO not only provided 4G services but also various other services like JIO money, JIO TV, Jio music etc. to Indian customers. RJIo is the only telecom operator possessing nationwide 4G spectrum in premium band of 850Mhz and 1800 Mhz.

RJIO provided 4G services starting from Rs. 49 per month  for customers who purchased Jio phones.Since the entry of RJIO all other operators has to bear severe loss in business .Due to heavy losses many telecom operators like TATA docomo, Aircel,  reliance communications closed their business in telecom. Idea and Vodafone merged their business to survive . Indian Telecom market left with only four national operators including BSNL, AIRTEL, IDEA-VODAFONE .

Along with telecom venture Mukesh launched its e-commerce fashion website with the tag line “Doubt is out” .With the stringent e-commerce policy changes in 2018 AJIO is targeting indian customers aggressively to compete with Amazon and Flipkart.

Reliance retail, Reliance trends are other ventures of  Mukesh Ambani.

Wealth and controversies

Mukesh Ambani is currently wealthiest Asian ,leaving behind Chinese business baron,founder of Jack ma. As of February 2018,  Bloomberg’s "Robin Hood Index" estimated that Mukesh Ambani's personal wealth was enough to fund the operations of the Indian  government for 20 days.

Name of Mukesh Ambani is linked with many controversies. In February 2014, a  FIR alleging criminal offences was filed against Mukesh Ambani for alleged irregularities in the pricing of natural gas from the  K.G basin. Kejriwal has alleged that the Center allowed the price of gas to be inflated to eight dollars a unit though Mukesh Ambani's company spends only one dollar to produce a unit, which meant a loss of Rs. 540 billion to the country annually.

Other controversy raised about predatory pricing by RJIO to provide free services for almost a year. Although  AIRTEL appealed against RJIO in TRAI and TDSAT but could not get favorable judgement. .State government of Rajasthan and Chhattisgadh distributed JIO Phones in the state priced at Rs .500 from the fund of State government thus causing criticism for many corners for favoritism.
One more controversy was associated with RJIO during state election in Madhya Pradesh in 2018 when election commission allotted tender to RJIO to provide internet connectivity during vote counting which was cancelled when objections were raised by Indian national congress.

Awards and Honors to Mukesh Ambani

Mukesh Ambani has been awarded number of awards few of them are listed below:

1.Ernst & Young Entrepreneur of the Year-in the year 2000 by  Ernst & Young India.

2. Global Vision Award at The Awards Dinner-in the year 2010 by Asia Society

3. Businessman of the Year-in the year 2010 by Financial Chronicle

4.    School of Engineering and Applied Science Dean's Medal-by University of Pennsylvania

5. 5th-best performing global CEO –in 2010 by Harward Business review.

6. Foreign member, U. S. National Academy of Engineering in 2016 by National Academy of Engineering.

7. Othmer Gold Medal-in 2016 by Chemical Heritage Foundation.
 Summary: Mukesh Ambani, now the richest Asian man ,is the shy and modest person according to her wife Nita Ambani , he also believes in collective efforts in business and is a visionary businessman . Since he launched RJIO in telecom market by launching 4G services, India has seen rapid growth in digital transactions, as well as data speeds available to customers. Mukesh Ambani is Investing heavily in future technologies like 5G and Artificial intelligence.

Source: Wikipedia

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