Case 11 no notes available
Case 12: Reliance Industries (Part A)
Suggestions for Use
The Reliance Industries case features several important elements of family enterprise
leadership, best management practices, and successful growth and evolution . The case
Executive Brief
Summary – Over the span of 44 years, Dhirubhai Ambani built a conglomerate that, at the
and his sons, Mukesh and Anil, battled for control of the company.
Corporate history & profile – Reliance Industries began as a trading company in 1958
and quickly shifted its focus to textiles, to take advantage of emerging market
opportunities. Reliance initially produced synthetic fibers, expanded to textiles
Financial Strategy – Reliance Industries financial stra
from government control to a free market system and increased participation in world
credit agencies.
Although Reliance was a shareholder owned company, the leadership ranks included
many well-qualified Ambani family members and long-time friends. In addition, an effort
there and to take advantage of longstanding and strong relationships.
Family History & Profile The Ambani family consist consists of the father and
became Co-Managing Directors. Mukesh was given an additional title of Vice Chairman.
Mukesh and Anil have very different personalities, strengths, and skills. Mukesh was
large enough that each son had his own responsibilities and their functions did not
management ability after clashing over decisions of governance and corporate strategy.
By 2004, their disagreement had become public and nasty. At the heart of the discord was
According to the settlement, Mukesh
received the flagship Reliance Industries and a smaller petro-chemical business. Anil
Discussion Questions
1. How would you describe the culture and communication style of the Ambani
family?
Culture –
style and the respect and admiration he engendered from his family. This
hierarchical structure may have contributed to the development of the zero-sum
Communication Although the Ambani family lived collectively and frequently
saw each other, they did not create a process to discuss difficult family and
2. Discuss the ways in which Kokilaben used her formal and informal power to
influence the settlement between Mukesh and Anil.
use it, initially
saying that she did not have sufficient knowledge of the business to intervene. As
time passed, she did intervene, suggesting that her role in the family had changed
3. What role did the outside consultant, K.V. Kamath, play in the on-going
negotiations? What role did company valuations play in the final settlement?
K.V. Kamath held the trust of Kokilaben, Mukesh, and Anil. He also was highly
regarded within the business community. He was uniquely, trusted by the Ambani
4. From a family perspective, would you characterize this succession as
successful or unsuccessful? Why?
The succession can be viewed as having both successful and unsuccessful aspects.
5. From a business perspective, would you characterize this succession as successful
or unsuccessful? Why?
From a business perspective, the succession was successful in three ways. First,
the agreement between Mukesh and Anil left Mukesh with the petroleum and
petrochemical businesses, and Anil with the energy, infocomm, and financial