Less than a month ago, Mukesh Ambani’s Reliance Industries (RIL) and the Anil Dhirubhai Ambani Group (ADAG) announced the seeming end of their self-defeating sibling rivalry and affirmed the truth of this old Arab proverb about the concentric circle of relationships. Now, outside the Ambani family circle, there is nervousness. “The power of one has already created ripple effects in corporate circles,” said the head of a large consumer durables company. “Some corporates are doing a rethink on the businesses that they had earlier planned to enter such as power and telecom.”
A major component of the May 23 truce required the businesses-owned by the Ambani brothers — Mukesh (53) and Anil (51) — to stop being dogs in the manger with each other to create an environment of “harmony, co-operation and collaboration”.
Mukesh has moved swiftly to take advantage of the tearing up of non-compete pacts, which prevented each brother from operating in sectors where the other was present. The elder brother has announced big plans for power and has planted a big foot already in telecom with the acquisition of Infotel Broadband, the only company to win a nation-wide licence for broadband wireless spectrum. “There are those who have accepted the fact that businesses are being built to be sold to the brothers. The combined power of the Ambani brothers in India sometimes has a greater effect on businesses in India than the might of MNCs,” said the chief of the consumer durables company.
Brothers focus on corporate battles now
“Companies, which are connected with the Reliance growth, are the ones who will tend to do well,” AM Naik, chief of engineering giant Larsen & Toubro told ET NOW in an interview.
Mukesh, who keeps a low public profile but is seen as ruthlessly efficient, has been formidable even though he has been hobbled for the past five years because of the fight with Anil over the supply of gas for ADAG’s power plants.
Source - www.economictimes.indiatimes.com
Posted By - Chintan Dedhia
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