Mukesh Ambani has long held the title of India’s richest man, with a net worth exceeding USD 110 billion (approximately Rs 9.1 lakh crore). Yet, not too long ago, his younger brother Anil Ambani, a significant beneficiary of the Reliance legacy, was richer. Anil Ambani, who inherited half of the Reliance fortune, experienced a remarkable rise in wealth, only to face a dramatic fall.
Anil Ambani once presided over a thriving conglomerate. However, his fortunes took a nosedive as his enterprises accrued mounting debts, culminating in him declaring bankruptcy. The story of Anil Ambani is one marked by both astounding financial success and grave missteps that led to his economic downturn.
The sudden demise of the Reliance patriarch, Dhirubhai Ambani, in 2002, sparked a significant rift between Mukesh and Anil, leading to a high-profile financial dispute. The $15 billion Reliance empire was split between the two brothers, an event that initially catapulted Anil Ambani to financial stardom. By 2008, just six years after their father’s death, Anil Ambani had ascended to the position of the world’s sixth richest person, boasting a net worth of USD 42 billion. This impressive surge was primarily fueled by the listing of Reliance Power, an event that created history as the largest initial public offering (IPO) in India’s financial annals at that time.
However, the momentum of Anil Ambani’s rise was soon undercut by a series of controversies and unfortunate investment decisions. Among the notable missteps was a USD 2 billion investment in a deal with the South African telecom company MTN, which fell through, consequently saddling Reliance Communications with unsustainable debt levels. To compound the issue, financial scandals, substantial loans from Chinese banks, and the aggressive market entry of Mukesh Ambani’s Jio all played critical roles in destabilizing Anil’s telecom business.
The cumulative effect of these challenges was a steep decline in Anil Ambani’s net worth, which plummeted from USD 42 billion to merely USD 1.7 billion over a decade.
. Simultaneously, his companies accumulated a consolidated debt north of Rs 40,000 crore. By 2020, Anil Ambani declared bankruptcy and revealed that he had been compelled to sell his family’s jewellery to cover legal fees, a testimony to the severity of his financial plight.
Amidst these tribulations, Anil Ambani’s sons, Jai Anmol Ambani and Anshul Ambani, have stepped up to the challenge of reviving the beleaguered business empire. Their strategy is focused on reducing debt and stimulating business growth. Under their steadfast efforts, Reliance Capital has begun showing operational success, while Reliance Infrastructure has managed to lighten its hefty debt load.
Jai Anmol Ambani has independently built a business with a valuation of Rs 2,000 crore through consistent hard work. Both Jai Anmol and his brother Anshul are actively engrossed in revitalizing their father’s once-dominant business conglomerate through their venture, LimeLight. Their business strategy hinges on debt reduction, escalating investments, and business expansion.
Anil Ambani remains hopeful and is actively devising plans with his sons to aid in the company’s resurgence. Under his guidance, Reliance Power aims to become debt-free by the end of FY25. The company is making significant headway, having recently forged substantial debt restructuring agreements with ICICI, DBS Bank, and Axis Bank. Furthermore, Reliance Power secured a deal worth ₹132 crore with JSW Renewables to sell a 45-megawatt wind power project in Maharashtra, a deal that has bolstered investor confidence.
In a concerted effort to further alleviate debt and launch new ventures, the company has plans to raise $350 million (approximately Rs 3,000 crore) through Foreign Currency Convertible Bonds (FCCBs). Reliance Infrastructure is also poised to establish four new companies that will concentrate on manufacturing deals related to fuel transportation and vehicle equipment, strategically positioning itself to tap into sectors with burgeoning demand.
The story of Anil Ambani is a compelling narrative of immense potential, unforeseen pitfalls, and a hopeful revival led by the new generation. His sons’ unwavering dedication to resurrecting the empire could mark the beginning of a significant turnaround, propelling the family’s business legacy towards renewed success.
