Mukesh Ambani Resigns: Mukesh Ambani Resigns from Reliance Jio, Son Akash Ambani Appointed President | Indian Business News

NEW DELHI: In the first clear signs of a succession plan laid out at India’s most valuable company, billionaire Mukesh Ambani has resigned from the board of directors of his $217 billion group’s telecommunications arm, Reliance Jio, and handed over the reins of the company to his eldest son. Akash Ambani.
At a stock market presentation, Reliance Jio Infocomm Ltd said on Tuesday that the company’s board at a meeting on June 27 “approved the appointment of Akash M Ambani, non-executive director, as chairman of the company’s board.”
This comes after his father resigned with effect from the close of business hours on June 27, he said.
Jio is a unit of Reliance Industries Ltd, whose business ranges from oil refining and petrochemicals to retail, media and new energy.
Ambani, 65, has three children: twins Akash and Isha and the youngest son, Anant.
He is expected to hand over the reins of the retail business to Isha, 30, who is married to Anand Piramal (son of Ajay and Swati Piramal of Piramal Group).
Akash and Isha have been on the boards of Reliance Retail Ventures Ltd, the company that operates supermarkets offering consumer electronics, food and groceries, fashion, jewellery, footwear and clothing, as well as the online retailer, JioMart, and the Jio digital arm. Platforms Ltd (JPL) since October 2014.
Anant, 26, was recently appointed director of RRVL. He has been a director at JPL since May 2020.
Among other appointments, Pankaj Mohan Pawar has been appointed managing director of Reliance Jio Infocomm for five years from June 27, according to the filing.
Former union finance secretary Raminder Singh Gujral and former CVC KV Chowdary have been appointed as independent directors, it added.
The two are already on board Reliance Industries Ltd.
Reliance has three broad businesses: oil refining and petrochemicals, retail and digital services including telecommunications. While the retail and digital services are in separate wholly owned subsidiaries, the O2C business is a functional division of Reliance. The new energy business is also with the parent company.
The three companies are almost equal in size. While Akash and Isha have been active in the group’s new-age retail and telecommunications businesses, Anant has been eyeing Reliance’s renewable energy and oil and chemical units as a director.
The ad outlines a clear transfer of wealth by the 65-year-old tycoon, who was embroiled in a bitter inheritance dispute with his younger brother after their father died in 2002 without a will.
Ambani, whose net worth exceeds $109 billion, remains the chairman and CEO of Reliance Industries Ltd. His wife, Nita, 59, is also on Reliance’s board.
He will also remain the chairman of Jio Platforms Ltd, the flagship company that owns all of Jio’s digital services brands, including Reliance Jio Infocomm.
According to company documents, the Ambani family’s current stake in Reliance has increased to 50.6% from 47.27% in March 2019.
Ambani first spoke of a succession plan on Reliance Family Day, which marks the anniversary of the birth of the group’s founder, Dhirubhai Ambani, on December 28 last year. Reliance, he had said, is “now in the process of effecting a momentous leadership transition.”
Before that, at the company’s annual general meeting (AGM) in June 2021, he had indicated that his children will now find a prominent place in the family’s vast empire. He had said, “I have no doubt that the next generation of leaders at Reliance, led by Isha, Akash, and Anant, will further enrich this precious legacy.”
The succession plan comes at a time when Reliance is in the midst of a very costly shift to clean fuels by investing across the value chain of solar, batteries and hydrogen.
Just as steady cash flows from oil refining and petrochemicals made it possible for Reliance to incubate telecommunications from scratch, profits from digital and retail businesses may allow it to replace hydrocarbons, the conglomerate’s traditional source of wealth, with green energy. over the next decade. .
Dhirajlal Hirachand Ambani, also known as Dhirubhai Ambani, had founded Reliance in 1973. He led the expansion of the family business from textiles to oil and telecommunications, but the family was thrown into chaos after his sudden death in 2002.
The differences between Mukesh and his younger brother Anil grew and after three years of bitter war, the mother Kokilaben in 2005 divided the assets of Reliance. Mukesh got refining, petrochemical, oil and gas, and textile businesses, while Anil took over telecommunications, asset management, entertainment, and power generation businesses.
Over the years, Mukesh Ambani built Reliance into a behemoth with his re-entry into the telecommunications business and his forays into retail and clean energy, while Anil Ambani’s business empire crumbled.
Since 2019, Mukesh Ambani has been slowly reviewing the top-level hierarchy at Reliance to improve governance in line with global standards. He sold a 32.97 percent stake in Jio Platforms to Google, Facebook and other venture capitals and landed a handful of foreign investors in the retail company.
In Reliance’s new structure, different business verticals will be run as separate businesses. There will be no interdependencies between the companies of the group for raising capital or servicing debt. The Ambani family is also consolidating its ownership in the company.

Leave a Comment