Dhirubhai Ambani facts for kids
Quick facts for kids
Dhirubhai Ambani
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Ambani on an Indian postal stamp issued in 2002
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| Born |
Dhirajlal Hirachand Ambani
28 December 1932 |
| Died | 6 July 2002 (aged 69) Mumbai, Maharashtra, India
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| Occupation | Businessman |
| Organization | Reliance Industries Reliance Capital Reliance Infrastructure Reliance Power |
| Spouse(s) |
Kokila Dhirubhai Ambani
(m. 1955) |
| Children | 4, including Mukesh Ambani and Anil Ambani |
| Awards | Padma Vibhushan (2016) |
Dhirubhai Ambani (born December 28, 1932 – died July 6, 2002) was a famous Indian businessman. He is best known for starting Reliance Industries, a huge company in India.
In 1977, he made Reliance a public company, meaning anyone could buy shares in it. After he passed away, he was given the Padma Vibhushan award in 2016. This is India's second-highest award for civilians. It recognized his big contributions to business and industry.
Contents
Dhirubhai Ambani's Early Life
Dhirubhai Ambani was born in a small village called Chorwad in Gujarat, India. His father, Hirachand Gordhanbhai Ambani, was a school teacher. Dhirubhai studied at Bahadur Khanji school.
In 1958, he left Aden (a city in Yemen) to start his own business. He wanted to work in the textiles market in India. Some people say he even worked at a petrol pump for a while.
Starting Reliance Industries
When Dhirubhai came back to India, he started a business called "Majin." He partnered with his cousin, Champaklal Damani. Their business involved importing polyester yarn and exporting spices.
Their first office for Reliance Commercial Corporation was very small. It was only about 350 square feet. It had just one telephone, one table, and three chairs. They started with only two assistants to help them.
Dhirubhai and his family lived in a small apartment in Mumbai. In 1965, Dhirubhai and his cousin decided to go their separate ways. They had different ideas about how to run a business. Dhirubhai was a risk-taker and liked to buy a lot of yarn to make more profit.
In 1966, he formed Reliance Commercial Corporation. This company later became Reliance Industries on May 8, 1973. He also launched a popular brand called Vimal. Vimal sold polyester fabrics for clothes like saris and suits.
Business Challenges and Growth
Dhirubhai made sure the Vimal brand was known all over India. He opened many retail stores that sold "Only Vimal" textiles. In 1975, a team from the World Bank even visited his manufacturing unit.
In 1988, Reliance Industries faced a big challenge with its company shares. Some stock brokers from Kolkata tried to make Reliance's share prices drop. They did this by "short selling" the shares.
To fight back, a group of stock brokers who supported Reliance started buying up the shares. They kept buying shares on the Bombay Stock Exchange. The price stayed steady at 152 Indian Rupees per share.
On the day of settlement, the brokers who tried to make the price drop were surprised. The Reliance supporters demanded the actual shares. Dhirubhai Ambani helped his supporters by providing a lot of money to buy these shares. This caused the price of Reliance shares to jump very quickly.
The stock exchange had to close for three days because of the excitement. The authorities stepped in and helped settle the issue. Dhirubhai Ambani even made a profit from this situation.
People wondered how Dhirubhai, who started as a yarn trader, had so much money. The finance minister at the time explained that a non-resident Indian had invested a lot of money in Reliance. This money came through several companies registered in the Isle of Man. An investigation by the Reserve Bank of India found no illegal actions by Reliance.
Dhirubhai Ambani's Passing
Dhirubhai Ambani had a major stroke on June 24, 2002. It was his second stroke; the first one in 1986 had paralyzed his right hand. He was in a coma for over a week. He sadly passed away on July 6, 2002, in Mumbai.
Reliance After Dhirubhai
After his first stroke in 1986, Dhirubhai gave control of Reliance to his sons, Mukesh Ambani and Anil Ambani. In 2004, Mukesh mentioned that he and Anil had some disagreements about who owned what.
After Dhirubhai Ambani's death, the Reliance group was divided. Mukesh Ambani took charge of Reliance Industries Limited. Anil Ambani led the Reliance Anil Dhirubhai Ambani Group. Mukesh became the CEO, and Anil became the chairperson of his group.
By 2017, Reliance Industries had more than 250,000 employees. In 2012, it was one of only two Indian companies to be listed among the top 100 in the Fortune 500 list. This list ranks the world's largest companies by how much money they make.
Dhirubhai Ambani in Popular Culture
In 1988, a book about Dhirubhai Ambani called The Polyester Prince was written by Hamish McDonald. This book talked about his business journey. It was not published in India at first because the Ambani family threatened legal action. An updated version, Ambani and Sons, was released in 2010.
A Hindi film called Guru was released on January 12, 2007. Many people believe this movie was inspired by Dhirubhai Ambani's life. It shows a man's journey to succeed in the Indian business world. The film was directed by Mani Ratnam and had music by A. R. Rahman.
Awards and Recognition
- June 15, 1998: He received the Dean's Medal from The Wharton School, University of Pennsylvania. He was the first Indian to get this award, which recognized his amazing leadership.
- January 2016: He was given the Padma Vibhushan award after his death. This is one of India's highest civilian honors.
See also
- Dhirubhai Ambani Institute of Information and Communication Technology
