How Mukesh Ambani Has Avoided an Error His Dad Made
The retail-to-telecom-to-energy major and India’s richest family is currently in the midst of an exercise that could define the future of Reliance Industries
Around this time in 2005, Mukesh and his brother Anil were living in their family house at the height of their legal battle for the legacy of their illustrious father Dhirubhai Ambani. The patriach had passed away without leaving a will resulting in a 3-year court battle, heartburns and an entrepreneurial journey that saw one scale new heights and the other new depths. All these years later, the same Mukesh Ambani who doubled and quadrupled his inheritance during the period, has skirted an error that his dad made. He has set a succession plan in motion that began with Akash Ambani ascending the Reliance Jio Infocomm (RJIL) board earlier this week.
The message is loud and clear. While the son takes over regular operations, the father would keep an indulgent eye as chairman of Jio Platforms, which is the holding company of RJIL and other digital assets. Ther’s more to come A similar shift is anticipated for the company’s retail business, where Akash’s twin Isha Ambani could take over from her dad.
Both of them would function as chairpersons of the two companies involved in the telecom and retail respectively. Media quoted unnamed sources to indicate that timelines for these elevations haven’t been firmed up yet. Once again, there would be an oversight from Mukesh Ambani who holds the reins of Reliance Retail Ventures Limited (RRVL), which is the holding company of all things retail at Reliance as well as partnerships with local and global fashion and lifestyle brands. In addition, it controls the hypermarkets, supermarkets, electronics stores, food and grocery outlets and more. Reliance Retail Limited (RRL) is the operating company that Isha Ambani would probably head up.
Preparations began early These decisions weren’t sudden or taken on a whim. The Ambani family gave formal business roles to both Akash and Isha in 2014 itself when they joined RRVL as directors. Five years later, both were included in Jio Platforms with the youngest Anant Ambani (27) getting inducted in March 2020 and thereafter to RRVL in 2022.
Before Akash’s recent elevation as chairman of Jio Infocomm, all three siblings had the same title of non-executive, non-independent directors on the board of RRVL and Jio Platforms. Isha and Anant will continue to remain on the boards of the telecom and retail holding companies.
There is no Ambani on the board of RRL, which is helmed by S Venkatachalam, who serves as the managing director of RRVL and wholetime director at RRL. Media reports also suggest that Anant Ambani is being prepped to focus on the legacy petroleum, natural gas and new energy business under the tutelage of his father. Indications are that it could be another two to three years before he too is given independent charge prior to Mukesh Ambani withdrawing further from day-to-day operations.
Early steps in succession planning Mukesh Ambani first spoke of a success plan at Reliance Family Day last year. This falls on December 28 and marks the birth anniversary of of Dhirubhai Ambani. He had said then that the company was in the process of effecting a momentous leadership transition, which is now seeing the light of the day in step after calculated step. At the company’s AGM last June, he had given enough indications that his children would now find a permanent place in the family empire. “I have no doubt whatsoever that the next generation of leaders at Reliance, led by Isha, Akash and Anant, will further enrich this precious legacy.”
Market watchers are quite enamoured with the precise planning at multiple levels that Reliance and its current boss have put in place to transition leadership, while ensuring that the new leaders have the option of seeking advice when required. The siblings have been involved in the operations for a decade now and both have led global partnerships in telecom and retail.
