Why Mukesh Ambani is dividing Reliance empire again?
A thread š§µ - 1/16
#Reliance #MukeshAmbani #jio #RelianceRetail
It took Dhirubhai Ambani and the Ambani family 40 years to make Reliance the biggest private company in India. Just 1 year after his death, the biggest business in India was divided among the next generation of the Ambani family.
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Dhirubhai Ambani did not leave behind a will and proper succession plan for Reliance. It was probably an error of Dhirubhai which led to this division.
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Dhirubhaiās son and Reliance Industries chairman Mukesh Ambani has learnt the importance of having a proper succession plan in a business of Relianceās scale the hard way.
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Mukesh Ambani does not want to repeat what happened in Reliance. So, he draws up a plan to divide the Reliance to prevent the division.
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On 27 June 2022, Mukesh Ambani took the first step toward this plan when his eldest son Akash Ambani was appointed Jio Platforms's chairman.
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Akash Ambani played a crucial role in the success of Reliance Jio. Akash Ambani also handled the record-breaking fundraising of Jio when the company raised $20 billion in 2020.
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After changes in Jio, there are rumours about Isha Ambani taking over as the chairperson of Reliance Retail Ventures (RRVL), the holding company of Reliance Retail.
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She has led Reliance Retailās fashion division Ajio. It makes her the natural choice to lead Reliance Retail. The announcement is expected to arrive soon.
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With new bosses in Jio and Retail, all eyes are on the New energy and the cash cow of Reliance, the Oil & Petrochemical business. As per the reports, the youngest son of Mukesh Ambani, Anant Ambani, is expected to lead these two businesses.
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Anant Ambani is currently 27 years old. So, it may take another 2 - 3 years for him to inherit the control of Oil and New energy businesses.
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Though Mukesh Ambani is handing over the divisions of Reliance to his 3 children, he will continue to remain as the Chairman of Reliance Industries.
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It will help the 3 Ambani siblings to learn from Mukesh Ambani and gather the required experience to run the 3 biggest companies of India. It will also make the transition smoother in the biggest company in India.
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For a company like Reliance, a well-thought-out succession plan is crucial. It helps the company to boost the confidence among its investors.
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The succession plan in Reliance Industries is another way to prevent a crisis that led to the division of the Reliance Empire almost 2 decades ago.
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