What is the history of Reliance company?

11 minutes, 35 seconds Read

Introduction  –

Earlier we have given you a case study about Tata Group, today we will try to know about Reliance Industries, India’s second largest business group. This case study is different from the Tata group because the time taken for the success of Reliance is much less than that of the Tata group, so we will get to study about how we can grow our business in less time. What was the strategy of Reliance Group, which has given them so much success.

In this article we will try to know about Dhirubhai Ambani, the founder of Reliance Industries, try to know about the history of the Reliance Industries Group and how the company performed after Dhirubhai Ambani and the  split of business between the two brothers Mukesh Ambani and Anil Ambani.

Without focusing too much on his personal life, we will try to know his life from a business point of view. Here we will try to analyze how Reliance’s journey from Textile Mill to Jio was and how it will be in the coming times. The controversy of the company and its growth is the major news in 80’s media and Dhirubai Ambani handle the License system of India.

Reliance Industries Limited – Subsidiaries –

  • Jio Platforms (2019)
  • Reliance Retail (2006)
  • Reliance Petroleum (2009)
  • Reliance Payment Bank (2019)
  • Jio Payment Bank (2018)
  • Mumbai Indians (2008) – IPL cricket team
  • Alok Industries Limited (1986)
  • Reliance Foundation – Non profit organization

Life Journey of Dhirubhai Ambani  –

Dhirubhai Ambani’s full name is Dheerajlal Hirachand Ambani and he was born in British India on 28 December 1932 in Chorwad, Gujarat. Dhirubai Ambani’s father was a school teacher. Although it is said that business is in the blood of every person in Gujarat, but because of his father being a school teacher, he had to start his business from nothing, his elder brother was working in Yemen when Dhirubhai was 17 years old. He went to Yemen to his brother and started doing a job there, that was the period of 1950.

After spending eight years in Yemen, he decided to move to Mumbai, which was the time for him to lay the foundations of Reliance Industries. In his nature, he had the ability to do business aggressively, but also had the ability to make accurate decisions, so this aggression scared his partner Damani in his early days, but Dhirubhai never looked back, he wanted to do something big.

In 1977, money was needed to increase the business, so he went to the public sector banks, but he was unsuccessful, so he decided to raise money from the common people and Reliance Industries became the first public listed company. Such a large hall was not available in Mumbai for its first meeting, so the first meeting of the company was taken in the open ground.

He saw both the times when the whole system was under license and it was not so easy to do any business, but no one could take advantage of the open economy of 1991 more than him and he tried his hand in many fields. By the time of his death in 2002, he had taken Reliance Industries to such a point that when Anil Ambani and Mukesh Ambani separated after his departure, Dhirubhai Ambani left a lot of wealth for him.

History of Reliance Industries  –

Reliance Textile Engineer Pvt Ltd  established in 1966 in Mumbai, Maharashtra and its production plant was started at Naroda, Gujarat at the same time. In 1973 the company was made a public limited company and this period is textile mills in that time Bombay region now today’s Mumbai.

By the death of Dhirubhai, Reliance Industries had become a big name in India, which was divided between the two brothers, in which Mukesh Ambani  was given the petrochemical business and Anil Ambani was given business like telecommunication and capital business. In that era, telecommunication was the emerging business of the Indian market. After the split of business they had a agreement  that for the next five years, both would not do business in each other’s field.

The matter went further to the court, but later under the agreement, Mukesh Ambani got the consent to enter the telecommunication field and this led to the entry of the famous Jio Telecom in the market and further history was made. Mukesh Ambani went ahead after the business split, but Anil Ambani failed in his business very badly, but Mukesh Ambani got the position of India’s richest person.

Successful Journey of Reliance Industries –

Reliance Industries have been included in the list of Fortune 500 for 2019 at 155th place with today’s net worth having a market value of 13 lakh crores. Reliance Industries are leader in the share market in the Nifty and BSE Index in the share market and does its business in many countries of the world.

Reliance, which started with trading in the textile business, has established its existence in important sectors like Telecom, Oil & Gas, Retail, Media and is going to enter the future looking at the future of technology by signing up with Facebook and other American tech companies. Earlier the problem of Indian companies was that they do not work on research and development, so they are not able to compete with international companies.

But Reliance has made a strategy for this, under which it is working on many projects, due to which it competes with big companies like Amazon and Tesla, and spend huge amount on research. The success of Jio has increased the confidence of Reliance Industries, so Mukesh Ambani has joined the top ten richest people not only in India but in the world, this is the evidence of the success of Reliance Industries.

Jio Platforms Limited –

Jio is the most important company of Reliance Industries, which started its business in 2019, which will mainly work in technology in the future, for which Reliance Industries has kept this company completely debt-free. It has been done under a strategy in which the Facebook company has  9.99% investment, The Silver Lake Partner’s has 1.15% investment, The General Atlantic’s 1. 34%  investment and other foreign investment is 2,32% in Platforms.

After this American companies’ investment in  Jio Platforms it has become the fourth largest company in India. Which has been made to compete with companies like Tesla and Amazon in the coming time in artificial intelligence and technology. Reliance Jio Infocomm is a subsidiary of this company, which entered the telecom market through 4G technology since 2015.

Which changed the face of the entire telecom market, many companies had to close their telecom business which was sitting by establishing their dominance in the market and the rest of the companies are facing losses till date. The secret of the success of Jio Telecom of Reliance Industries was its investment. Which was not combined with all the other telecom companies, by investing about Rs 3 lakh crore, Jio has brought the Internet revolution in India and after that YouTube started being used more in India.

Anil Ambani’s Reliance Group  –

After the death of Dhirubhai Ambani, Reliance was divided into two parts and Telecom, Infra, Capital and Energy went to Anil Ambani and Reliance Industries and IPCL went to Mukesh Ambani. Prior to this, Anil Ambani used to watch all the activities outside the company in Dhirubhai’s Reliance, so he was very famous for his lifestyle and matching people.

But due to some wrong strategy, he became bankrupt today, but business and bankruptcy in America. It is considered a part of business, bankruptcy is considered a big crime in our country, but laws like IBC have been brought in India so that how the business was revived. It can be seen by his aggressive nature with decision making..

Looking at his projects today, he also hopes that he will emerge from it in future. The business mind is like a scientist who does many experiments, who has to face the most failure, but one success forgets the whole time of failure and this is the life of successful business mind.

Mukesh Ambani and Reliance Industries Limited  –

According to the list of Forbes, Mukesh Ambani’s wealth as of 3 September 2021 is 93. 9 billion US dollars which makes him the richest person in Asia. Mukesh Ambani received this chemical engineer’s education, after that he started working actively in business with father after 1985. When Dhirubhai Ambani’s health started deteriorating, from then till today he works under his father’s strategy. And the success of Jio Telecom has seen his vision all over the world.

  • He does his work calmly, stays far away from the glare and knows how to respond to the opposition of the people with his work. When the business was divided after the death of his father, a company like petrochemical came in his part, but looking at the future changes, he expanded his business in telecom, media, technology and retail, so that we can understand the idea of ​​his business skills. .

Strategies for the success of Reliance Industries  –

  • Price strategies like Jio forced the front companies in the telecom market and mobile market to drop their prices and introduce their products in the market. This is a very risky strategy, but from Dhirubhai Ambani to today Mukesh Ambani uses this strategy to make his place in the market.
  • When Airtel, Idea and other telecom market companies dominate the business with 3G technology with mobile talk pack strategy, Reliance Jio given 2 years free internet to their subscribers.
  • Reliance Jio made Rs. 3 lakh crore investment in 4G technology which force the Airtel and Idea to switch from 3G technology to 4G technology which is huge loss to them.
  • Large-scale use of capital For this, Reliance invests a lot more capital than the competitor in its startup projects, due to which the competitor panics. The company invested Rs 3 lakh crore for Jio, which was much more than the entire telecom market.
  • Reliance’s management is completely under the control of Mukesh Ambani, so no such controversial news is heard ,which we always see in listed companies. Because of this, the purpose of the company is very clear.
  • After the division of the business of both brothers, Mukesh Ambani had a company like petrochemical in the textile business, but without being stuck in it only, he established the company in the field like retail, media, telecom and technology.
  • The company keeps a good mix of political relations and business policies, due to which the company always benefits from its policies, whoever the government is.
  • To compete with companies like Tesla and Amazon, Reliance has launched Jio Platforms in the market, which is India’s fourth largest company, which will work in artificial intelligence and technology in the future.
  • Jio Platforms This company has been kept completely debt free, which will compete with international tech companies in India and abroad in the coming times.
  • Reliance company has made a complete network of its business, so that they do not have to work hard to bring any new product in the market, they already set up and take off the product.
  • Amazon cannot compete with Reliance Retail in India, the important reason for this is the setup of the retail market of Reliance, which delivers products to customers at a lower cost and in less time than Amazon before Amazon.
  • Reliance Jio has already made plans for Tesla’s Starlink internet project, which is also supported by government policies that meet the policy of protecting the company in India from good political relations.
  • Earlier, no company used to invest much in research and development in India, but for this, Reliance has made a strategy, under which it is partnering with American technology company.
  • Product marketing and branding strategy has always been the best “Vimal” is a clothing brand, be it Jio Telecom Services, Reliance has always been two steps ahead of other competitors.

Controversies about Reliance Industries Limited  –

The pace of development of Reliance has been very fast since 1966, so this journey cannot be disputed, it cannot be that Dhirubhai Ambani was accused by the media at that time like good relations with political and government officials, it kept him in controversies.

His clash with the Vimal brand’s competitor Bombay Dyeing was a popular one. Many allegations of insider trading in the stock market were made on the company and this news raised a lot by the media, but the company denied all these things.

Jio’s entry in telecommunication was quite controversial as Jio entered the market with big investment from new technology like 4G, which made it difficult for old companies like Airtel, Idea to invest so much in the market immediately in new technology. Many companies in this sector had to be closed and companies like Airtel, Idea and Vodafone reached the verge of bankruptcy, the matter went to the court but no one could stop the success of Reliance.

Conclusion –

In this way, through this article, we have tried to study Reliance Industries Limited, whose chairman is Mukesh Ambani, and tried to understand how Reliance is growing its business successfully so fast. Dhirubhai Ambani started Reliance from a small office in Mumbai, and today Reliance Industries is considered not only in India but in the top 500 companies in the world and is one of the largest companies in India.

Reliance has been an attractive investment for small investors in the stock market since the beginning due to the fact that almost all the companies in Reliance are performing well in the stock market. Mukesh Ambani made the company so big that it has emerged as an international company after his father and even after splitting the business with his brother.

From bottom to top, how to grow the company, The leaders of Reliance Industries and all their coordinators, Frenchie’s who run the agency, from the management to the small area, have increased the Reliance. This will be an important case study for our business from which we will learn many nuances.

BUSINESS MODEL OF ZOMATO COMPANY 

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