By IANS
Mumbai : Five years after legendary industrialist Dhirubhai Ambani died after a stroke, the companies founded by him continue to be investors' favourites, even though the group was split between his two sons Mukesh and Anil two years ago.
He died at age 69 at the Breach Candy hospital in Mumbai July 6, 2002. Private prayers by the family will mark the death anniversary of the man who had built India's largest private company, Reliance Industries, despite modest beginnings.
Both his sons will observe the day with prayers within their respective homes in Mumbai, sources close to the family said. "They follow the Hindu calendar for such events," said one such source.
Dhirubhai Ambani's widow Kokilaben is expected to join the elder son.
Born in Gujarat in 1932 to a village schoolteacher, Dhirubhai Ambani started his career in a gas station in Aden, Yemen, after dropping out of high school.
While ambition may have driven others in his place to dream of owning such a gas station, Ambani dreamt much bigger. He wanted to set up a petroleum refinery and that too the world's largest one.
"Growth has no limit at Reliance. Only when you dream it can you do it," he had once said. And that dream was realised in July 1999, when he commissioned one of the world's largest grassroots refineries at Jamnagar in Gujarat.
"From a humble beginning, he went on to create an enviable business empire in a span of just 25 years," says a tribute on Reliance Industries' website.
"The $54 billion Reliance group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals."
A nugget on Dhirubhai Ambani's eye for profits reads: During his stint at Aden, he once made a quick buck by selling the silver in local coins. He had noticed that the value of silver in the coins exceeded their face value.
After striking such deals, he left Aden with some modest savings to become an insurance agent in Mumbai. He also dabbled in shares and picked up finer points about stock markets, which he put to use in raising money for his dreams.
Soon after, he started Reliance Commercial to trade in commodities, especially spices and textiles, which he would export to the Middle East. In eight years, the business gave him enough returns to start a textile unit in Ahmedabad.
Over time, he diversified his business with the core strength in petrochemicals and interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets and logistics.
Today, while the Mukesh Ambani-controlled group handles areas like petroleum, petrochemicals, textiles and retail, Anil Ambani's empire has control over businesses like telecom, financial services, energy and entertainment.
The Mukesh Ambani group's flagship, Reliance Industries, registered a 24 percent jump in turnover last fiscal to cross the $25 billion mark while Reliance Communications of Anil Ambani is the fifth most valuable company on Indian bourses.
Dhirubhai Ambani also introduced innovative instruments in the market to pick up funds. He was the first to issue global depository shares and access the US capital market. He was also the first in Asia to launch bonds in the US with a 100-year tenure.
During the 1980's and the 1990's, such was his clout that the power centres in New Delhi were measured in terms of being 'R-negative' or 'R-positive' – the 'R' being Reliance Industries.
In 1991 when liberal economic reforms programme was initiated, Ambani was quick to adapt his business to suit the needs of an open, competitive environment. Here, his penchant for economies of scale and world-class quality came in handy.
But the rigours of building the empire took toll on Dhirubhai Ambani's health. In 1986, he suffered his first stroke, which partially paralyzed his right side. "I'll retire only at the cremation ground," he, nevertheless, said.
And that retirement came on five years ago after a 13-day battle at the hospital – his last.