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The Reliance Big Fight Between India's Famous Ambani Brothers

BY: Jo Justin | Category: Men | Submitted: 2010-06-13 20:46:18
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Article Summary: "Reliance Industries and RNRL have patched up and so have Mukesh Ambani and Anil Ambani, but they still have a long way to go..."

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The war of succession between the brothers Mukesh Ambani and Anil Ambani has taken a new turn these days. They were the most famous industrialists and the best ones too. As the bull market was raging over the past few years, there was a great deal of value unlocking and they started making new companies out of existing ones and they made investors flock to them in large numbers.

The company that was started by their father Dhirubhai Ambani was going strong when he died and the mantle fell on the two sons. They had small misunderstandings and so the business was divided between the two of them with the blessings of their mother Kokilaben Ambani. Though she tried to broker peace between the brothers, it did not happen and they went their way. Each of them had a particular kind of business and the business that one did was not interfered in by the other person.

Over a period of time, the businesses grew still bigger and this led to the quarrels, jealousy and various other problems resurfacing between the two brothers. There was a point of time when the interests of the companies had to be kept in mind over the bitter squabble between the two brothers and so they split their assets and also their businesses. Their mother was the one who played a major role in the smooth transition of assets and businesses.

Once the two brothers and their companies went their separate ways, it was again smooth sailing and each of the brothers started building a separate business empire. This led to a massive influx of funds into the companies because of the great business model that they were following. The funds were making the companies to expand further and make the investors happy. Similarly, their personal wealth was growing and the country was also developing.

In spite of all these, the underlying problem between the two brothers, mistrust and other problems were simmering under the surface and suddenly reared its head at times. One of the greatest problems was the fight between the two companies RNRL and Reliance Industries, on sharing the gas that was taken from the Krishna basin. The government and the courts were dragged into this problem and finally the Supreme Court ordered that Reliance Industries need not provide gas at a reduced rate to the company RNRL. On a double blow, the Reliance Industries was also told that the gas that was removed from the basin was to its property and was national wealth.

As a result of this decision, the companies stocks fell, in fact RNRL fell more than 25% in a single day. After the decision, the tension between the brothers seems to have thawed a little and they are now on the path of reconciliation. The brothers are trying to patch up and there are many vibes that they will try to overcome their differences and function as one, sometime in the future. This augurs well not only for the family, but also for the country and for all the investors who hold shares in these companies.

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