Ambani Brothers : Burying the hatchet or yet at each other with one ! ?

It’s been a War Zone with no holds barred between the Ambani Brothers after their father expired in 2002…It led to a Demerger of the Group in 2005 and shareholder wealth zoomed

There have been evident reconciliatory moves between the brothers in recent months…clearly some thaw is visible and they appear to be moving the Hatchets away from each other to bury them….it’s probably because there’s appears to have been a falling out between diehard loyalist Anand Jain ( promoter of Jai Corp and SEZs) and Mukesh Ambani…Jain has not been seen at Maker Tower IV or at Sea Winds in December 2008..and yes,he was very much in Mumbai 

It’s a pity the Ambani brothers split…though shareholders were not complaining…Mewonders if they reconcile will their companies too merge back !?…Next Immediate Thought…if they do,then will shareholders wealth zoom again ! ?  

Whatever ?…the stark reality is that in such challenging times when there is a global recession it would be foolish to waste scarce resources fighting each other…in a sense you are using shareholder resources to fight each other….Both brothers have had severe business reverses….It is strongly rumoured that Mukesh Ambani’s Reliance Group had contracted Crude Imports as throughput for their refineries at prices over US $ 100 per barrel in a rapidly rising price scenario in mid 2008…Prices have since nose dived to below US $ 50 per barrel…The Group has taken a huge hit on this accord…if this is the case,wonder how the Accounts will reflect this in the December and March Quarterlies and the Annual Reports for FY 2008/9 ?

Also the Share Prices of all Reliance Companies,whichever group, are always bobbing around as if they are in a witch’s cauldron and spells are continuously being cast on them…driven less by valuation and more by sentiment,expectations,contingent events,manipulation and rumours….they rise and even flare one day,only to dive down the next…..So it’s easy to see why they are a trader’s nightmare but an Insiders’ delight. 

Accusations of Big Ticket Insider Trading,Misuse of Funds,Poor Corporate Governance and Unethical Business Practices continue to plague both the Ambani Groups

I was under the impression that once you become Big,you become Honest !  

Pirated Edition of “The Polyester Prince”: The Rise of Dhirubhai Ambani

You’ll get the pirated edition of “The Polyester Prince “at the signals in South Mumbai…don’t pay more than Rs 100

Today’s Sunday Mid Day devotes a whole page to it…….The Book was written in 1998 by Hamish McDonald who in 1991 was appointed to run the India Country desk from New Delhi for “Far Eastern Econimc Review”. He now is the Asia-Pacific Editor of the “Sydney Morning Herald”

The idea of the book actually came in 1992 after the author had met the late Mr Dhirubhai Ambani a few times beginning in 1991 with the Invitation to the marriage of his son Anil Ambani with the Film Actress Tina Munim

The Pirated Print is not too good, but the book does give some insight into the enormous risk taking abilities of the late Dhirubhai Ambani and where the End often justified the Means adopted.

Born on December 28, 1932, Dhirubhai Ambani sowed the seeds for the Reliance Empire soon after he returned from Aden in 1958…. before he crossed 30 years of age… he went on to becoming an icon and also is considered as the father of the Modern Equity Cult.

This controversial book was never really released in India by the Original Publishers Harper Collins as it saw an endless round of litigation ahead with the Reliance Group who had applied for and obtained injunctions against publication on grounds of anticipated defamation as the relationship between the author and the Ambanis had soured after the author wrote a few articles against them

Dhirubhai Ambani passed away in July 2002 and his two sons, Mukesh and Anil soon came to loggerheads leading to an inevitable split of the Reliance Empire

The continuing feud, often vitrolic and bitter, has given strength to a sentiment that National Interests are far more important than Ambani Interests…. moreover it has brought this Book on Dhirubhai Ambani back into the limelight…… I’m sure McDonald must be tempted now to write a sequel to cover this feud…He needed 274 pages to cover the rise of the late Dhirubhai Ambani… he may need twice as much to cover the two sons 

I was junior to Mukesh and Anil in the Jewish run Hill Grange High School (Closed down years ago) on Peddar Road in Mumbai…. the late Dhirubhai Ambani sometimes delivered the lunch tiffin himself to his boys. In the late 1980’s I had an opportunity to interact very briefly with Anil who had approached me through the  DSJ Publication Group for scripting and making a small film on Reliance. This was in the backdrop of V P Singh’s zeal to bring down the Group and the Share price of Reliance being battered on the Bourses. I never got round to doing the film because I conveyed a stance that while I would highlight the Positives I would not be biased.

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