Success Story Of Reliance Industries | How Did It Start?
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| Credit:Source thise image from Google |
How reliance was born to begin with the firm had a humble and modest start let's turn the wheel of time and know the backstory of mr dhirubhai ambani who laid the foundation of this conglomerate firm mr dhirubai ambani was born in gujarat and his father was a school teacher in a small village there although his father was a teacher young mr deerubai had no interest in studies so he gave up his studies after completing class 10th and went to aden for work in aden he first started to work at a gas station and did other jobs as well young dhirubhai ambani had a good skill of spotting profit opportunities and putting them to good use during his day in aden he noticed that the coins were made from silver this meant the value of the coins was less as compared to the material used to make them so mr dhirubhai ambani used to collect those coins melt them and then sell the silver material to make money after spending eight years in aden he returned to mumbai india in 1957.
On his return mr dhirubhai started a business from all the money he made by melting and selling coins in aiden the business he started was named as reliance commercial corporation it did the work of trading polyester yarn and spices while he was working in aid in one of his friends mr praveen bhai takar had opened a shop by the name reliant stores dhirubhai loved the word reliance since then after attaining success in trading of polyester yarn and spices he forayed into fabric manufacturing and went on to launch his brand vimal he started his very first textile mill near ahmedabad and began the fabric making work unfortunately he did not get a good response from wholesalers but he did not give up instead he started to sell that fabric directly to the customers and then there was no stopping for the wimmel brand the story shows that mr dhirubai ambani had the right acumen and foresight for doing business in 1968 he shifted from a child to south mumbai and started to live in a decent apartment mr dhirubhai ambani was not only known for his business management skills but he had good communication and convincing power too when he decided to launch reliance ipo in 1977-78 only a handful of people invested in the stock market at that time stock market was not a familiar term in india
During that time so to pass this hurdle he decided to convince people from various cities he started to enlighten them about the future plan of his company and how the common public can benefit from the success of reliance in future as a result reliance ipo saw the participation of about 58 000 retail investors and it was subscribed seven times in fact during that time it was the first ipo in india where so many retail investors participated after successfully launching the ipo he started to focus on expanding his business for this he ventured into the manufacture of the materials needed to make polyester-like petrochemicals before the liberalization of 1991 it was pretty difficult to do any business in india still mr dhirubhai ambani managed quite well to expand his business across sectors and cities his basic and simple business strategy was to make quality products and then sell it in huge volumes even If the profit margin was less a similar strategy is used by his eldest son mr mukesh ambani with the passage of time keeping his main focus on petrochemicals and oil refining mr dhirubhai ambani started to enter other sectors such as telecommunications power infrastructure services etc he not only took his firm to new heights of success but the shareholders of his firm also earned a handsome amount of money from the success of reliance he kept his promise of good business growth that he made to the investors while launching reliance ipo when reliance bought its ipo in 1977 its revenue was around 70 crores but in 2002 the year in which thirubai ambani passed away reliance had made a whopping revenue of around 75 000 crores well these figures will help you imagine the return investors must have incurred by investing in reliance during that time it won't be wrong to quote that mr dhirubai ambani made reliance an investor friendly firm this can be validated by an incident where in 1986 the annual shareholder meeting of reliance was attended by nearly 28 000 shareholders during that time no hall in mumbai had a capacity to hold these many people he ended up organizing the annual meeting in a ground named cross medan garden well that itself was a record reliance industries was the first private indian firm to make it to the list of fortune 500. in fact his first textile mill built near ahmedabad was appreciated by the world bank mr dhirubhai ambani was world's 138th richest person when he passed away four years back in 2016 the indian government facilitated him with padma vibhushan for his work and contribution and it was received by his wife kokila ben ambani mr dhirubhai ambani is an example to show the world that even without a strong financial background or an oxford degree one can build an empire with a successful business after he passed away his businesses were divided among his sons mr mukesh and mr anil ambani reliance industries which is looked after by his eldest son mr mukesh ambani recently became the first indian firm to hit the market capitalization of approximately 11 lakh crores and we are sure there is more to come we hope all the viewers will get inspiration from the story of mr dhirubhai ambani