Divided stands India's Reliance

Asia Times ^ | 21 June 2005

[Racehorse]

After seven months of a bitter tussle in India's first family of business, the two feuding brothers, Mukesh and Anil, finally cut a deal over the weekend to split the giant Reliance group that their father Dhirubhai Ambani had built from scratch. Reliance's US$23 billion in annual revenues - larger than Coca-Cola's - represents 3.5% of India's gross domestic product (GDP) and accounts for 17% of the total profits of the country's private sector.

[. . .]

A deeply religious person, Kokilaben is said to have been warned by an astrologer that if the issue was not settled before July, it would drag on for years. Finally, she convinced her sons on a truce formula in which her two daughters - Nina Kothari and Dipti Salgaocar - will receive 5% stake each in the Reliance empire, Kokilaben herself, Mukesh and Anil will get 30% each.

The settlement ends the family discord that first became public in November. Dhirubhai Ambani had died two years ago without leaving a will, leading to the squabble over control of the sprawling conglomerate. The two brothers, who were a picture of unity when dad was around, began to develop strains and ego problems when it came to managing the empire by their own.

[. . .]

Daughter of a postmaster in Jamnagar, Kokilaben studied only up to Class IX in a Gujarati school and didn't speak a word of English for many years after she married Dhirubhai. But she picked it up over the years to follow the business conversations between her husband and sons. Gradually she also started attending Reliance annual general meetings. When crisis struck, she rose to the occasion and single-handedly saved the day for Reliance, and millions of Indian investors and foreign players.

[Racehorse]

There you have it. The solution to every family spat. A stern word from Mom and guidance from a reliable astrologer.