The chair and managing director of Reliance Industries, a vast Indian conglomerate with interests in refining, oil and gas, petrochemicals, telecoms, retail and media, Mukesh Ambani is the richest man in India and, for a brief period in 2008, a contender for the title of richest man in the world.
As of March 2024, Ambani’s net worth was $113.9 billion. His 42% ownership in Reliance Industries, which bills itself as the world’s largest oil refining complex, accounts for the most of this.
Ambani was born in Yemen in April of 1957. Dhirubhai, his father, relocated the family to Mumbai. In an attempt to flee an unpredictable political environment, Dhirubhai moved to India where he established the Reliance Commercial Corporation alongside his cousin. Eventually, the business would develop into Reliance Industries Limited.
After completing his undergraduate studies in chemical engineering at the University of Mumbai, Mukesh stayed in Mumbai to pursue an MBA at Stanford University. He later relocated to Palo Alto, California. He went back home to help his father build a polyester filament yarn plant after receiving his degree.
Reliance Industries
After Ambani returned to India from America in 1981, Reliance was granted a licence by the Indian government to manufacture polyester filament yarn. Under Dhirubhai’s direction, the business was founded in 1958 and initially offered textiles. expanded into petrochemicals and refining in the 1970s.
The family business grew to become one of the biggest petrochemical corporations in the world when Ambani joined it. Ambani was recognised with assisting in the expansion of Reliance into new growth markets and transforming it into the conglomerate it is today while working for his father and subsequently assuming leadership with his younger brother Anil.
Its rise was not due to innovation, but rather to the use of cutting edge systems and technology to create a dynamic supply chain and realise large economies of scale.
Death of Ambani father
Ambani’s father passed away from a stroke in 2002 without leaving a will. Ambani and his brother Anil became at odds as a result of this.
After three years, the brothers decided to divide the company in half with their mother’s assistance. Anil kept hold of the company’s telecom, entertainment, power generation, and asset management divisions, while Mukesh kept the flagship Reliance Industries, which has holdings in petrochemicals, oil and gas exploration, refinement, and textiles.
Ambani Struggle for Reliance
Reliance’s earnings and sales have skyrocketed since 2005. Under Mukesh’s leadership, the business expanded into new markets including retail, media, and 4G wireless internet, built best-in-class manufacturing facilities, and fortified its petroleum operations.
Reliance’s valuation skyrocketed as a result of its expansion. But attitudes soured and the share price collapsed. Corporate governance problems and Reliance’s opaque corporate structure have been partially held responsible for this.
The company’s reputation has suffered as a result of the negative publicity surrounding charges of crony capitalism. Additionally, claims have been made that Reliance manipulates the system and obtains advantageous deals by using its political ties.
Ambani has also come under fire for personally developing a lavish 400,000-square-foot house in Mumbai, a city notorious for its extreme poverty.
Why Is Mukesh Ambani Among the World's Richest Individuals?
For a number of years, Ambani has held the title of richest man in India. His estimated net worth is approximately $95 billion, making him one of the world’s wealthiest individuals.
His 42% ownership in Reliance Industries is responsible for the lion’s share of his riches. The market valuation of the corporation was $235.04 billion.
In addition, Mukesh owns roughly 45% of Jio Financials Services, a company that was formerly a Reliance subsidiary before being split out into its own. He also owns the cricket team Mumbai Indians.
Among his other noteworthy holdings is Antilia, his home in Mumbai, which was estimated to be worth over $2.2 billion in 2020 and is likely worth much more today. The 27-story, 48,000-square-foot skyscraper has three helipads, a movie theatre, a ballroom, a yoga studio, a temple, and 168 parking spaces.
Why Does Mukesh Ambani Have Such Wealth?
The majority of Ambani’s wealth comes from his 42% ownership of Reliance Industries, a Fortune 500 business currently valued at more than $200 billion.
Mukesh Ambani: Was He Born Rich?
He wasn’t born wealthy, no. When the family relocated to Mumbai soon after his birth, they supposedly resided in a modest, inexpensive flat in a big tenement structure known as a chawl. His father had previously worked as a petrol station attendant.
In a nutshell
By assisting in the growth of his father’s business, Reliance Industries, into a massive conglomerate and a market leader across multiple industries, Mukesh Ambani rose to become the richest man in Asia and among the richest individuals globally. Mukesh Ambani, the company’s managing director and chair, owns little under half of its $200 billion valuation.