How far behind is Anil Ambani from his brother Mukesh Ambani
Jun 13, File photo of Anil(L) and Mukesh Ambani in Mumbai June 24, Reliance Communications is controlled by Anil Ambani and Reliance. Jan 3, For Indian tycoon Anil Ambani, it was a humbling denouement to the for a big package,” the person says, calling the fraternal relationship. Jul 25, India Business News: New Delhi, Jul 25 () Billionaire Anil Ambani has relationship" with the Gandhi family over generations, Ambani said he.
Meanwhile, Anil has been selling assets to quell investor concerns around the indebtedness of some of his companies that contributed to declines in his shares. Like his brother, Anil invested billions to expand his portfolio, but the younger brother didn't have a cash cow like the oil refinery to finance growth. Instead, like other businesses in India and elsewhere, many of his companies increased debt.
Bought in as part of his bet on defense as the next engine of growth, the warship and submarine maker has proven hard to turn around. Its loan accounts have been "irregular or substandard" sincethe company said in March.
The defense contractor is in arbitration with ex-owners over the latter's alleged breach of some warranties.
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Auditors in April cautioned against the firm's ability to survive and two creditors have an ongoing lawsuit to send Reliance Naval into insolvency. In a stock exchange filing in April that sought to allay the auditor's concerns, the company said it is engaged with its lenders and is confident on reaching a solution "to resolve the financial position of the company and to continue as a going concern.
It plans to be debt-free by next year, Anil said at a briefing in August. A Mumbai metro train travels along a section of elevated track on Line 1. The group's profitable financial services firm Reliance Capital Ltd.
Major firms in Anil Ambani group have all seen their shares slump But the biggest challenge for Anil's empire came from his brother's business. Last month, Rcom sold itskilometer fiber-optic network for 30 billion rupees as part of a disposal that will see it divest of almost all of its wireless assets and exit from the mobile phone business.
The buyer was Mukesh's Jio.
RCom "was the crown jewel given away to Anil Ambani after the family businesses split," said Bhasin. He warned that the consolidation in the telecom industry would lead to a drastic reduction of choice for Indians.
Who is thwarting RCom's revival plans? The game changer in the telecom industry was his elder brother Mukesh Ambani 's Reliance Jio in the last one year.
The incumbents - Airtel, Vodafone and Idea - were fighting Jio with tooth and nail, deeply cutting down their margins.
The cut throat competition has burdened them at one side when debts were accumulating at the other. Its true that the entire industry has been in the doldrums, not only RCom, in the last one year.
Ambani said, "At every stage, there are legal challenges - motivated regulatory challenges that are creations of public interest litigations. There is intensive corporate rivalry. The peace was over all too soon.
But the Supreme Court reversed the order next year and Mukesh won the battle. Two weeks after the apex Court order, the Ambani brothers called a truce and scrapped the non-compete agreement, leading to Mukesh's re-entry into telecom through Reliance Jio Infocom. It was he who conceptualised and implemented Reliance Infocomm during Dhirubhai's time.
Relationship with brother cordial, telecom ventures will always be separate: Anil Ambani
It was peaceful afterwhen both were pursing businesses separately and their coming together at any venue was celebrated by the media.
Out of the four companies that Anil got, RNRL became a shell company after it lost the court case and it vanished from the public domain. The next one was big, the Reliance Power initial public offering in Meanwhile, Anil had won the bids for developing ultra mega power projects in the country, triggering the rise in valuation.
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During the infrastructure boom, Anil renamed Reliance Energy as Reliance Infrastructure and transferred power generation businesses to Reliance Power. The corporate expansion included Anil's purchase of controlling stake in Pipavav Defence about a year ago. It was recently renamed as Reliance Defence and Engineering. Reliance Petroleum's IPO in which later delisted and merged with the parent was the one big initial move from Mukesh.
He created the organised retail business and launched it in the same year amidst protests from kiranas and political parties.