Mukesh Dhirubhai Ambani is an Indian national who runs the conglomerate Reliance Industries Limited (RIL). He was named India’s first Rupee trillionaire in 2007 and dubbed the world’s richest man in the same year by the news agency Press Trust of India and The Economic Tribunes Newspaper. Today we will find out how Mukesh Ambani gained his first net worth and became one of the richest people in the world.
Mukesh Ambani’s early life
Before we know what the business of Mukesh Ambani is, let’s get to know his early life. He was born to a Gujarati Hindu family in the British Crown colony of Aden, now known as Yemen, on April 19, 1957. He lived there with his parents and three siblings for a short period. In 1958, his father brought them back to India, where he started a trading business focused on selling spices and textiles. His father’s business slightly improved their financial status, just enough to allow them to live modestly in a two-bedroom apartment in the neighborhood of Bhuleshwar, Mumbai.
Mukesh Ambani finished a Bachelor of Science in Engineering major in chemical engineering at the Institute of Chemical Technology, a state-funded university in Mumbai. He later took a postgraduate degree course in business administration at Stanford University but could not finish it. Mukesh withdrew from the MBA course to join his father in building a small but fast-growing enterprise called Reliance. Ambani was tasked to lead a yarn manufacturing project, where he started growing his venture and improving his financial status.
Note! Today, Mukesh Ambani owns 45% of Reliance Industries, which equates to a net worth of approximately $24 billion (in rupees, it is about 2 trillion).
Reliance Industries Limited
Reliance was co-founded by Champaklai Damani and Dhirajlal Hirachand Ambani, Mukesh Ambani’s father, in the 1960s. Back then, it was known as Majin and was primarily involved in importing polyester yarn and exporting spices to Yemen.
In 1965, the partnership between Champaklai and Dhirajlal ended. Dhirajlal continued to manage the polyester part of the business, taking risks and building yarn inventories to increase profits. His hard work was rewarded, and he was able to form Reliance Commercial Corporation in 1966. Dhirajlal expanded the business and incorporated textiles into its existing products. He launched his brand “Vimal”, which became a hit in the future. Vimal focused on selling polyester materials used to create dresses, saris, suits, and shawls.
On May 8, 1973, Reliance Commercial Corporation was renamed Reliance Industries. Later, it was renamed Reliance Textiles Industries and then Reliance Industries Ltd. The company continued to expand and produced over 1,045,000 tons of polyester yarn per annum. The company launched its first public offering in 1977. The company has since expanded its business dealings and ventured into manufacturing multiple products, including polymers, petrochemicals, polyesters, polyester intermediates, and many more. It has also launched its brands, focusing on innovation and setting trends in various markets.
These days, the net worth of Reliance Industries company is estimated at 6.4 trillion Indian rupees.
How did Mukesh Ambani become rich?
To answer this question, let us take a walk-through from when Mukesh Ambani withdrew from his MBA at Stanford to when he became a business tycoon in India.
Mukesh Ambani’s father believed that MBA would not give his son the skills he needed to get through life. Dhirajlal thought that his son could harness his skills better through real-life experiences instead of just listening to teachers inside the classroom. So, he asked Mukesh to return to India and quit his MBA at Stanford University. Mukesh responded positively and built his career by helping his father run Reliance. His decision proved to be correct. Mukesh helped grow the business, and it also helped him improve his financial status in the long run.
When Dhirajlal passed away on July 6, 2002, due to a stroke, his wife split the company into two, giving half of it to Mukesh’s brother. Mukesh got control of Reliance Industries Limited and Indian Petrochemicals Corporation Limited. The Bombay High Court approved the split in December 2005.
Ambani continued to grow the company despite the absence of his father. Later, he led the creation of the world’s largest grassroots petroleum refinery located in Jamnagar, India. This refinery had the capacity to produce 660,000 barrels of petroleum per day in 2010.
Ambani did not stick with just producing textiles and petroleum. He continued to explore other ventures, partnering with other business tycoons and investing trillions in different industries. In 2015, he launched his own 4G broadband services. In 2016, he launched Reliance Jio Infocomm Limited, more commonly known as Jio. Along with it, Jio’s own 4G smartphone brand, LYF, was launched. Due to this, the stocks of Reliance in the share market soared high. Ambani was also set to launch his company’s high-speed internet connection in major cities, such as Mumbai and New Delhi.
In retrospect, Ambani became wealthy due to his diligence and continuous effort to innovate his products and businesses. His company is set to offer high-speed internet connection throughout India by the end of 2023.
What is the net worth of Mukesh Ambani?
Mukesh Ambani has a current estimated real-time net worth of 91.4 billion dollars. This is based on the figures provided by Forbes.
What does Mukesh Ambani do?
He was the chairman and managing director of Reliance Industries Ltd. On June 30, 2022, Mukesh Ambani announced that he was stepping down from the board of directors of Reliance Jio. His son Akash Ambani took his place. Despite his departure from the board, Mukesh Ambani remains one of the wealthiest people in India and the world.
Mukesh Ambani’s assets
Mukesh Ambani’s assets include an uber-luxurious car collection. He owns cars from the world’s most prestigious automobile brands, such as Rolls Royce, Bentley, Mercedes Benz, Maybach 62, Aston Martin Rapide, and many more. Mukesh owns a private plane, which he uses to travel abroad and within India.
Mukesh Ambani also owns a refinery located in Jamnagar, Gujarat. This refinery is said to be the largest in the world, with a capacity of 668,000 barrels per day.
Mukesh Ambani’s net worth includes a heritage property in Stokes Park in London. The property spans 300 acres and comprises a 5-star hotel with 49 rooms and suites. It is also known as the location for the shoot of two James Bond films.