CASE STUDY ON LEADERSHIPCASE STUDY ON LEADERSHIPDHIRUBHAI AMBANI

Dhirajlal Hirachand Ambani Dhirajlal Hirachand Ambani Born on December 28, 1932 in

Chorwad, Gujarat. Business sense came early as he sold

bhajias to pilgrims on Mount Girnar during his childhood.

Went to Yemen to join his elder brother, worked at a gas station. Later promoted to as a distributor of Shell products.

Came to India, started the business of exporting spices.

Founded Reliance Commercial Corp. with cousin Champaklal Damani with initial capital of 15,000.

An OpportunistAn Opportunist During 1950s-

In the 1950s, the Yemini administration realized that their main unit of currency, the Rial, was disappearing fast.

It was found that a young man in his twenties was placing unlimited buy orders for Yemini Rials.

Rials, pure silver coins and was in much demand at the London Bullion Exchange. Young Dhirubhai bought the Rials, melted them into pure silver and sold it to the bullion traders in London.

Entrepreneurship’s true sense lies in the fact that he always looks upon opportunity

A VisionaryA Visionary Government of India introduced High Unit Value

Scheme; hence Dhirubhai shifted his interests from spices to nylon fabrics.

When most Indian business houses depended on government – owned financial institutions for funds, Dhirubhai raised capital from the public by offering shares of his companies.

“It does not require an invitation to make profits” By Dhirubhai Ambani

The InnovatorThe Innovator Dhirubhai Ambani is credited with

starting the equity cult in India. Dhirubhai identified a new market

for his brand ‘Vimal’ - the non-metro urban segment.

Backward Integration: To strengthen his position in the textile sector,Dhirubhai integrated

backwards and produced fibers.

The HelperThe Helper When things went wrong, he was

the first person to sense that the circumstances would have been beyond his team's control, rather than it being a slip on their part.

His first instinct was always to join his men in putting out the fire and not crucifying them for it.

The Solution SeekerThe Solution Seeker Dhirubhai faced resistance from

cloth merchants; so decided to open his own showroom for ‘Vimal’

‘Polyester Prince’ announced a ‘buy-back’ scheme when the polyester he produced was losing its demand.

Whenever a task seemed too big to be accomplished, he would reply: " No is no answer!"

"It's difficult but not impossible!"

The Network StrategistThe Network Strategist Using his connections in Aden, he exported a wide

range of commodities to Aden. To promote ‘VIMAL’:advertising program was

launched, toured the entire country intensively offering franchises to shareholders.

Dhirubhai managed to create favourable centers in all the important areas – among the bureaucrats, the ruling politicians, as well as the media. These were the areas where power vested.Dhirubhai believed that "business is nothing but a web

of relationships and obligations."

The People's ManThe People's Man Dhirubhai followed an 'open-door

policy’. Employees could walk into his cabin and discuss their problems with him.

He was always inviting people into sharing their thoughts and ideas, rather than shutting them out.

Always there for his team and brought around confidence in them.

‘Arm-around-the-shoulder’ leader This tendency that he had, to draw

people towards him, manifested itself in countless ways.

People s View…that did much more than wordsin letting people know that they belonged, that they had his trust, and that they had him on their side!

DhirubhaismDhirubhaism Never followed the textbook style of

management , evolved a Unique style

The American Style of entrepreneurship

With the Japanese Focus on Technology

And innate shrewdness of a Gujju businessman

◦ A Perfect manager of Time , Money , Men and Passion to find solution to problems

◦ Believed that business was not all about Ethics & Morality ,it was all about Expansion & Success

Famous Motivational & Inspiring words of Dhirubhai Ambani

”I am deaf to the word “no”.” “Growth has no limit at Reliance. I keep revising my

vision. Only when you dream it you can do it.” “Think big, think fast, think ahead. Ideas are no one’s

monopoly” “Our dreams have to be bigger. Our ambitions higher.

Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India .”

“Give the youth a proper environment. Motivate them. Extend them the support they need. Each one of them has infinite source of energy. They will deliver.”

“We bet on people.” “Don’t give up, courage is my conviction.” “We cannot change our Rulers, but we can change the

way they Rule Us.”

CriticismCriticismAccused of being a ‘manipulator’

Accused of using ‘connections’ to get work done

Some described Reliance as ‘an out of control monster, a bubble that would burst

any moment’.

HighlightsHighlights *Unlike other corporate houses who dominated over a period of time, Dhirubhai Ambani could

achieve within a short period with a razor like sharpness and business acumen.

* Dhirubhai Ambani proved to be a king in his diversification.

* RIL is now India's largest Private Sector with turnover over US$19.976 billion backed by a profit over US$2.03 billion.

* 25% of share holders in India own a RIL Scrip.

* Fortune Global 500 featured RIL in 342nd rank in 2006. Forbes Global featured RIL at 295 spot in 2000.

*Chemtech and Chemical Engg.World gave the" Man of the Century " award in Nov 2000 to Dhirubhai Ambani.

* Dhirubhai won the " Dean's Medal " of Wharton School, University of Pennsylvania in June 1998 for " Outstanding Leadership "

* FICCI conferred the title " Man of 20th century " on D.A.in 2000.

* Times Of India in 2000 voted Dhirubhai Ambani as the greatest creator of wealth in the country.

Sun sets down…Sun sets down…“Dhirubhai will go one day. But Reliance’s employees and shareholders will keep it afloat. Reliance is now a concept in which the Ambani s have become irrelevant.”

By Dhirubhai Ambani

Dhirubhai Ambani breathed his last on July 6, 2002