Reliance Industries’ founder, Dhirubhai Ambani, was a brilliant man with remarkable ability. Among Indian businesspeople, he was a trailblazer due to his inventiveness and adeptness in business secrets. He shaped Indian business and investment, authored his own tale, and emerged as a hero of his century.
This Indian business icon experienced a remarkable rise from humble beginnings to immense success, proving to be one of the most talented entrepreneurs of his era. He captured global attention, emerging as a renowned figure both in India and abroad. His devoted wife, Kokila Ben Ambani, provided unwavering support and stood by him throughout his many accomplishments.
What were the keys to his extraordinary success? What defined Dhirubhai Ambani’s rise? How did he transform into an industrial magnate and global conglomerate? Why does he have admirers in India, the US, China, Japan, the UK, the EU, Canada, and beyond?
Know his business secrets.
There are seven key business secrets behind his success in the corporate world. In this blog, we will explore each one in detail.
1. Gather information, whatever it may be.
- Collect information on government entities at local, state, central, and international levels.
- Make sure to gather details about your competitors.
- Be thorough in collecting data on products, companies, consumers, markets, individuals, services, and political factors.
He swiftly collected, processed, and analyzed information, and then distributed it to his team as needed. This enabled him to identify new opportunities.
One of my friends, the esteemed senior professor of physics and research researcher, Prof. M.L. Sisodia, once told me a story about Dhirubhai Ambani. Mr. Sisodia suffered a heart attack and had bypass surgery. His son was contacted for an interview with Dhirubhai Ambani a few days following his surgery.
He was coveted by Dhirubhai for a senior role in his business. “How is your father?” was the first inquiry Dhirubhai Ambani posed to him. Even though it was before the internet era, this example alone demonstrates his ability to gather knowledge.
2. Look for opportunities.
He was continuously trying to make sense of the facts he had. He would turn information into ways to make money. “There is no invitation to make profits,” he asserts. You need to locate it.
3. Jump from One Orbit to the Next
Wherever you find yourself, focus on excelling in that environment. Master your current position, gather your strengths, and then advance to a higher level. Once you reach the new level, establish control and mastery before moving on to the next.
Dhirubhai Ambani practiced this approach repeatedly throughout his career. Caution: Avoid moving to a new level without fully mastering your current one, as this can be risky. Exercise patience and strategic planning.
4. Complete projects on time.
Aim to complete tasks ahead of schedule. Dhirubhai Ambani and his sons consistently finished their projects on time or even earlier, regardless of the project’s size or obstacles encountered.
Dhirubhai and his sons, Mukesh and Anil, implemented strategies to ensure they remained punctual, closely monitoring their projects to achieve timely completion.
5. Think big. Think global.
Even before the present trend of globalization, he was thinking worldwide. In the current global scenario, the majority of Indian enterprises were performing poorly and were not adhering to international norms.
He created world-class businesses and world-class projects. At the time, no one in India was even considering that.
6. Hire the best people. Pay them well.
Dhirubhai Ambani was able to hire the most accomplished individuals in every industry. He was a first-rate employer who never compromised on timing or quality. Only with the best of company could he accomplish what he achieved. The most valuable resources, in his opinion, are human resources.
7. Pay shareholders well.
His ambitious projects required significant capital, but bankers and financiers were skeptical of his abilities. They were hesitant and unwilling to fund his ventures due to the perceived risks.
Dhirubhai Ambani turned to his shareholders, seeing them as the most reliable source of funding. He sought their financial support, and they eagerly invested in his projects. In return, he generously rewarded them for their trust.
He understood that shareholders would not be content with dividends that were merely in line with prevailing trends. Recognizing the importance of capital appreciation, he offered bonuses and issued rights to his shareholders, in addition to providing regular dividends.
Dhirubhai Went Beyond Investors’ Expectations
He exceeded his investors’ expectations. He even went so far as to file a legal challenge. He once made a huge profit, even though it was illegal to convert non-convertible debentures into shares. Because of his opposition to that law, the administration was forced to amend it.
He had the most shareholders during his tenure. In addition to bringing millions of new investors under his wing, he increased the market value of BSE.
Teachings of Dhirubhai Ambani
Throughout his life, Dhirubhai Ambani adhered to these trade secrets. Management books and publications did not pique his interest. Instead, he left those to his management and his staff. He was a voracious reader with an insatiable thirst for news.
He began his career as a low-level gas station employee and rose to become a multinational company and industrial giant. His name appeared on the Fortune 500, and he was able to oversee $78 billion in revenue annually. Nothing like that had been accomplished by any other Indian manufacturer at the time. He was not content, though, and he aspired to be the richest person on the planet. Only his premature passing prevented him from accomplishing this.
This success was realized through Reliance Industries, which he founded. Shortly after his death, the combined assets of his sons, Mukesh and Anil Ambani, who inherited his wealth, surpassed those of Bill Gates of Microsoft Corporation.