Dhirubhai Ambani: Founder of Reliance Industries

Dhirubhai Ambani
Founder of Reliance Industries

Born in Chorwad, India
Dhirajlal Hirachand Ambani, one of the leading Indian

businessmen, was born on December 28, 1932 in
Chorwad, Gujarat. Popularly known as Dhirubhai
Ambani, he heads The Reliance Industries, India's
largest private enterprise.
Dhirubhai started off as a small time worker with Arab

merchants in the 1950s and moved to Mumbai in 1958
to start his own business in spices. After making
modest profits, he moved into textiles and opened his
mill near Ahmedabad. Dhirubhai founded Reliance
Industries in 1958. After that it was a saga of
expansions and successes.
Reliance, acknowledged as one of the best-run

companies in the world has various sectors like
petrochemicals, textiles and is involved in the
production of crude oil and gas, to polyester and
polymer products. The companies refinery at
Jamnagar accounts for over 25% of India's total
refining capacity and their plant at Hazira is the
biggest chemical complex in India. The company has
further diversified into Telecom, Insurance and
Internet Businesses, the Power Sector and so on. Now
the Reliance group with over 85,000 employees
provides almost 5% of the Central Government's total
revenue.
Dhirubhai has been one among the select Forbes

billionaires and has also figured in the Sunday Times
list of top 50 businessmen in Asia. His industrious
nature and willingness to take on any risk has made
him what he is. In 1986 after a heart attack he has
handed over his empire to his two sons Anil and
Mukesh. His sons are carrying on the successful
tradition of their illustrious father.
Early life
'Dhirajlal Hirachand Ambani' was born on 28

December 1932, at Chorwad, Junagadh in the state of
Gujarat, India, into a Modh family of very moderate
means. He was the second son of a school teacher.
When he was 16 years old, he moved to Aden, Yemen.
Initially, Dhirubhai worked as a dispatch clerk with A.
Besse & Co. Two years later A. Besse & Co. became
the distributors for Shell products and Dhirubhai was
promoted to manage the company’s oil-filling station
at the port of Aden.
He was married to Kokilaben and had two sons and

two daughters. He also worked in Dubai for some time
during his early years.
Life in Aden
Kokilaben and Dhirubhai Ambani, In the 1950s, the

Yemini administration realized that their main unit of
currency, the Rial, was disappearing fast. Upon
launching an investigation, they realized that a lot of
Rials were being routed to the Port City of Aden. It
was found that a young man in his twenties was
placing unlimited buy orders for Yemini Rials.
During those days, the Yemini Rial was made of pure

silver coins and was in much demand at the London
Bullion Exchange. Young Dhirubhai bought the Rials,
melted them into pure silver and sold it to the bullion
traders in London. During the latter part of his life,
while talking to reporters, it is believed that he said
“The margins were small but it was money for jam.
After three months, it was stopped. But I made a few
lakhs. In short, I was a manipulator. A very good
manipulator. But I don’t believe in not taking
opportunities.
Reliance Commercial Corporation
Ten years later, Dhirubai returned to India and started

the Reliance Commercial Corporation with a capital of
Rs. 15,000.00. The primary business of Reliance
Commercial Corporation was to import polyester yarn
and export spices.
The business was setup in partnership with

Champaklal Damani, his second cousin, who used to
be with him in Aden, Yemen. The first office of the
Reliance Commercial Corporation was set up at the
Narsinathan Street in Masjid Bunder. It was a 350 Sq.
Ft. room with a telephone, one table and three chairs.
Initially, they had two assistants to help them with
their business. In 1965, Champaklal Damani and
Dhirubhai Ambani ended their partnership and
Dhirubhai started on his own. It is believed that both
had different temperaments and a different take on
how to conduct business. While Mr. Damani was a
cautious trader and did not believe in building yarn
inventories, Dhirubhai was a known risk taker and he
considered that building inventories, anticipating a
price rise, and making profits through that was good
for growth.
During this period, Dhirubhai and his family used to

stay in an one bedroom apartment at the Jaihind
Estate in Bhuleshwar. Mumbai. In 1968, he moved to
an up market apartment at Altamount Road in South
Mumbai.
Reliance Textiles
Sensing a good opportunity in the textile business,

Dhirubhai started his first textile mill at Naroda, near
Ahmedabad in the year 1966. Textiles were
manufactured using polyester fibre yarn. Dhirubhai
started the brand "Vimal", which was named after his
elder brother Ramaniklal Ambani's son, Vimal Ambani.
Extensive marketing of the brand "Vimal" in the
interiors of India made it a household name. Franchise
retail outlets were started and they used to sell "only
Vimal" brand of textiles. In the year 1975, a Technical
team from the World Bank visited the Reliance
Textiles' Manufacturing unit. This unit has the rare
distinction of being certified as "excellent even by
developed country standards" during that period.
Death
Dhirubhai Ambani was admitted to the Breach Candy

Hospital in Mumbai on June 24, 2002 after he suffered
a major "brain stroke". This was his second stroke, the
first one had occurred in February 1986 and had kept
his right hand paralyzed. He was in a state of coma for
more than a week. A battery of doctors were unable to
save his life. He breathed his last on July 6, 2002, at
around 11:50 P.M. (Indian Standard Time).
His funeral procession was not only attended by
business people, politicians and celebrities but also by
thousands of ordinary people. His elder son, Mukesh
Ambani, performed the last rites as per Hindu
traditions. He was cremated at the Chandanwadi
Crematorium in Mumbai at around 4:30 PM (Indian
Standard Time) on July 7, 2002.
He is survived by Kokilaben Ambani, his wife, two

sons, Mukesh Ambani and Anil Ambani, and two
daughters, Nina Kothari and Deepti Salgaocar.
Dhirubhai Ambani started his long journey in Bombay

from the Mulji-Jetha Textile Market, where he started
as a small-trader. As a mark of respect to this great
businessman, The Mumbai Textile Merchants' decided
to keep the market closed on July 8, 2002. At the time
of Dhirubhai's death, Reliance Group had a gross
turnover of Rs. 75,000 Crore or USD $ 15 Billion. In
1976-77, the Reliance group had an annual turnover
of Rs 70 crore and Dhirubhai had started the business
with Rs.15,000.

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Dhirubhai Ambani

Founder of Reliance Industries

Dhirajlal Hirachand Ambani, one of the leading Indian

Dhirubhai started off as a small time worker with Arab

Reliance, acknowledged as one of the best-run

Dhirubhai has been one among the select Forbes

'Dhirajlal Hirachand Ambani' was born on 28

He was married to Kokilaben and had two sons and

Kokilaben and Dhirubhai Ambani, In the 1950s, the

During those days, the Yemini Rial was made of pure

Reliance Commercial Corporation

Ten years later, Dhirubai returned to India and started

The business was setup in partnership with

During this period, Dhirubhai and his family used to

Sensing a good opportunity in the textile business,

Dhirubhai Ambani was admitted to the Breach Candy

He is survived by Kokilaben Ambani, his wife, two

Dhirubhai Ambani started his long journey in Bombay

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