Definitions Derived from French word Entreprendre means ‘to undertake’Richard Carleton: ´a person who buys factors of production at certain prices in order to combine them into a product with a view to sell them at uncertain prices.An entrepreneur is one who takes risk to start a business or other venture, or to buy and assume the management of a company.
Entrepreneurship Entrepreneur 4 factors of production LandLabor organization capital New venture
DHIRUBHAI HIRACHAND AMBANIarguably India’s most enterprising entrepreneur. “THINK BIG THINK FAST THINK AHEADIDEAS ARE NO ONE’S MONOPOLY.”
Dhirubhai Hirachand Ambanialso known as Dhirubhai, (28 December1932 – 6 July 2002) An Indian business magnate andentrepreneur who founded Reliance Industries, a petrochemicals, communications, power,and textiles Ambani took his company publicin 1984. Dhirubhai has been one among the selectForbes billionaires and has also figured in theSunday Times list of top 50 businessmen inAsia. His life has often been referred to as a true"rags to riches" story.
Dhirubhai started off as a small timeworker with Arab merchants in the 1950s moved to Mumbai in 1958 to start hisown business in spices. After makingmodest profits, he moved into textilesand opened his mill near Ahmedabad.
Early lifeHe was born into a Gujarati family. Hirachand Gordhandhas Ambani was a village school teacher with little income.Hirachand and Jamnaben had two daughters and three sons Dhirubhai was the second son.Dhirubhai was highly intelligent. He also do not like to learn lessons in the class school classroom. He chose work which used his physical ability to the maximum.
Life in Aden (1949-1958) Just after Dhirubhai was through his annualmatriculation examination and even before theresult was out, Hirachandbhai called him home toChorwad. Hirachandbhai had been unwell forquite some time. Dhirubhai had really wanted to study for abachelors degree, but his ambition melted . It was on board the ship that Dhirubhai learntfrom Gujarati newspaper that he had passed hismatriculation examination in second division Itwas a clerks job with the A. Besse & Co.
Life in Aden (1949-1958) He learnt the ways of commodity trading, highseas purchase and sales, marketing and distribution,currency trading, and money management to learnthe tricks of the trade he offered to work free for aGujarati trading firm. There he learnt accounting, book keeping,preparing shipping papers and documents, anddealing with banks and insurance companies., skillsthat would come handy when he launched himselfinto trading about a decade afterwards in Bombay .
In 1954, the year Dhirubhai returned home to Gujaratto marry Kokilaben. Dhirubhai was 26 years (1957), fullof youthful vigour and vitality, and filled with high hopesfor himself and for the new India of Nehrus dreams.
Majin Commercial Corporation Ten years later, Dhirubhai Ambani returned to India and started "Majin" inpartnership with Champaklal Damani, his second cousin, who used to be withhim in Aden, Yemen. The first office of the Reliance Commercial Corporation was set up at theNarsinatha Street in Masjid Bunder. It was 350 sq ft (33 m2). room with atelephone, one table and three chairs. Initially, they had two assistants to helpthem with their business. During this period, Dhirubhai and his family used to stay in a one bedroomapartment. In 1965, Champaklal Damani and Dhirubhai Ambani ended theirpartnership . Dhirubhai started on his own. It is believed that bothhad different take on how to conduct business. Ambanis net worth wasestimated at about Rs.10 lakh by late 1970s.
Reliance Textiles Sensing a good opportunity in the textile business,Dhirubhai and Aryan Mehra started the first textile mill atNaroda, in Ahmedabad in the year 1966. Dhirubhai started the brand "Vimal"Extensivemarketing of the brand "Vimal" in the interiors of Indiamade it a household name. Franchise retail outlets werestarted and they used to sell "only Vimal" brand of textiles. Dhirubhai Ambani is awarded with starting the equitycult in India. More than 58,000 investors from various partsof India subscribed to Reliances IPO in 1977.
Reliance communication Ltd.Type Public (BSE: RCOM) Founded 2004 Headquarters Navi Mumbai, IndiaKey people Anil Ambani , Chairman and Managing Director , . Vice-ChairmanReliance-ADA GroupTelecommunications Industry Products CDMA service, GSM service, BroadbandInternet Service
Diversification and Criticism In 1982 Ambani began the process of backward integration, settingup a plant to manufacture polyester filament yarn. He subsequently diversified into chemicals, petrochemicals,plastics, power. The final phase of Reliance’s diversification occurred in the 1990swhen the company turned aggressively towards petrochemicals andtelecommunications. He has been accused of having manipulated government policies tosuit his own needs, and has been known to be a king-maker ingovernment elections.
“Dhirubhai will go one day. But Pursue your goals even in the face Reliances employees and shareholders of difficulties and convert advrsities will keep it afloat. Reliance is now a into opportunities.” concept in which the Ambanis have "Between my past, become irrelevant." the present and the “Our dreams have to be bigger, future, there is one our ambitions higher. Our common factor: commitment deeper and our efforts Relationship & Trust. greater. This is my dream for This is the foundation Reliance and for India.” of our growth"“You do notrequire aninvitation tomakeprofits” "Give the youth a proper “Don’t give up, environment. Motivate them. courage is my Extend them the support they conviction” need. Each one of them has infinite source of energy. They "We bet on will deliver." people."
Death Dhirubhai Ambani was admitted to the Breach Candy Hospital inMumbai on June 24, 2002 after he suffered a major stroke. This was hissecond stroke. He died on July 6, 2002.His funeral procession was not only attended by business people,politicians and celebrities but also by thousands of ordinary peopleDhirubhai Ambani started his long journey in Mumbai from the Mulji-Jetha Textile Market, where he started as a small-trader. At the time of Dhirubhais death, Reliance Group had a gross turnoverof Rs. 75,000 Crore or USD $ 15 Billion. In 1976-77, the Reliance grouphad an annual turnover of Rs 70 crore and it is to be remembered thatDhirubhai had started the business with just Rs.15,000 (US$350)
Reliance after Dhirubhai In November 2004, Mukesh Ambani in an interviewadmitted to having differences with his brother AnilOver ownership issues’.The Reliance empire was split between the Ambanibrothers,Mukesh Ambani getting RIL and IPCL . Anil Ambani heading Reliance Capital, RelianceEnergy and Reliance Infocomm. Mukesh Ambani is referred to as the RelianceIndustries Limited . Anils Group has been renamed Reliance AnilDhirubhai Ambani Group (Reliance ADA Group)
In popular media A film said to be inspired by the life of Dhirubhai Ambani was released on 12 January 2007. The Hindi Film GuruIn 1998, a book published byHamish McDonald titled "ThePolyester Prince" is also anunauthorised biography ofDhirubhai Ambani, outlining allhis political and businessconquests.
Awards and recognitions November 2000 – Conferred Man of the Century award byChemtech Foundation and Chemical Engineering World in recognition ofhis outstanding contribution to the growth and development of the chemicalindustry in India 2000, 1998 and 1996 – Featured among Power 50 - the mostpowerful people in Asia by Asiaweek magazine August 2001 – Economic Times Awards for Corporate Excellence forLifetime Achievement A poll conducted by The Times of India in 2000 voted Him "GreatestCreator of Wealth In The Centuries".
Quotes by Dhirubhai Ambani *"I am deaf to the word "no"." "Thinkbig, think fast, think ahead. Ideas are no onesmonopoly" "You do not require an invitation to make profits." "Meeting the deadlines is not good enough, beating thedeadlines is my expectation." "We bet on people."