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Dhirajlal Hirachand
Author : uppy
Category : Person Current Affairs
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Dhirajlal Hirachand

Dhirajlal Hirachand

Dhirajlal Hirachand:

  •  Dhirajlal Hirachand "Dhirubhai" Ambani (28 December 1932 – 6 July 2002) was an Indian business tycoon who founded Reliance Industries in Bombay with his cousin. He had been figured in the The Sunday Times top 50 businessmen in Asia. Ambani took Reliance Industries public in 1977 and by 2007, the combined fortune of the family was $60 billion, making the Ambanis the third richest family in the world. Ambani died on 6 July 2002
Early career:
  • He founded Reliance Industries in 1966, and as of 2012, the company has over 85,000 employees and provides almost 5% of theCentral Government`s total tax revenue. As of 2012, Reliance Industries was listed among top Fortune 500 list of world`s biggest companies by revenues
Corporation:
  • Dhirubhai Ambani returned from Yemen to India and started "Majin" in partnership with Champaklal Damani, his second cousin, who lived with him in Aden, Yemen. Majin was to import polyester yarn and export spices to Yemen. The first office of the Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid Bunder. It was a 350 sq ft (33 m2) room with a telephone, one table and three chairs. Initially, they had two assistants to help them with their business. During this period, Ambani and his family stayed in a two-bedroom apartment at the Jai Hind Estate in Bhuleshwar, Mumbai.

 

Ambani`s control over stock exchange:

  • Extensive marketing of the brand in the interiors of India made it a household name. Franchise retail outlets were started and they used to sell "only Vimal" brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance Textiles` Manufacturing unit.
  • In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures. It was rumored that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, The Bear Cartel, a group of stock brokers from Calcutta, started to short sell the shares of Reliance. To counter this, a group of stock brokers until recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange.
  • The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in the Bombay Stock Exchange. The bulls kept buying and a price of ? 152 per share was maintained until the day of settlement. On the day of settlement, the Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares. To complete the transaction, the much money was provided to the stock brokers who had bought shares of Reliance, by Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an Unbadla, or penalty sum, of ? 35 per share. With this, the demand increased and the shares of Reliance shot above ? 180 in minutes. The settlement caused an enormous uproar in the market.
  • Exchange (BSE) intervened in the matter and brought down the "Unbadla" rate to ? 2 with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of The Bear Cartel`s adventure.

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 Awards and recognitions:

  • October 2011-Awarded posthumously the ABLF Global Asian Award at the Asian Business Leadership Forum Awards.
  • November 2000–Conferred Man of the Century award by Chemtech Foundation and Chemical Engineering World in recognition of his outstanding contribution to the growth and development of the chemical industry in India.
  • 2000, 1998 and 1996– Featured among Power 50-the most powerful people in Asia by Asiaweek magazine.
  • June 1998 – "Dean`s Medal" by The Wharton School, University of Pennsylvania, for setting an outstanding example of leadership. Dhirubhai Ambani has the rare distinction of being the first Indian to get Wharton School Dean`s Medal
  • August 2001 – Economic Times Awards for Corporate Excellence for Lifetime Achievement.
  • Dhirubhai Ambani was named the "Man of 20th Century" by the Federation of Indian Chambers of Commerce and Industry (FICCI).
  • A poll conducted by The Times of India in 2000 voted him "Greatest Creator of Wealth in the Centuries".

Death:

  • Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on 24 June 2002 after he suffered a major stroke. It was his second stroke, the first one had occurred in February 1986 and had paralyzed his right hand. He was in a coma for more than a week and a number of doctors were consulted. He died on 6 July 2002.

 

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