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SMALL BUS INE S SMANAGEMEN T

Dhirubhai Ambani

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Dhirajlal Hirachand Ambani

y Born on December 28, 1932

in Chorwad, Gujarat.

y Dhirubhai started off as a

small time worker with Arab

merchants in the 1950s

y Moved to Mumbai in 1958 to

start his own business inspices.

y He moved into textiles and

opened his mill near

Ahmedabad.

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During 1950s

y In the 1950s, the Yemini administration realizedthat their main unit of currency, the Rial, wasdisappearing fast.

y It was found that a young man in his twentieswas placing unlimited buy orders for YeminiRials.

y Rials, pure silver coins and was in much demandat the London Bullion Exchange. YoungDhirubhai bought the Rials, melted them intopure silver and sold it to the bullion traders in

London.

Entrepreneurships true sense lies in the fact that he always looks upon opportunity.

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y In 1962, Dhirubhai returned to India and started theReliance Commercial Corporation with a capital of

Rs.15,000.00.

y The primary business of Reliance Commercial

Corporation was to import polyester yarn and export

spices.

yAsia Times quotes: "His people skills were

legendary. A former secretary reveals: "He was very

helpful.

y He followed an 'o en-door' olic . Em lo ees could

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y Dhirubhai Ambani is credited with starting equityinvesting in India.

y More than 58,000 investors from various parts of

India subscribed to Reliance's IPO in 1977.

y Dhirubhai was able to convince people of ruralGujarat that being shareholders of his company will

only bring returns to their investment.

y Reliance Industries holds the distinction that it is theonly Pvt. Co. whose several annual generalmeetings were held in stadiums.

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9 Great Management Lessons From

Dhirubhai Ambani

y Dhirubhaism No 1: Roll up yoursleeves and help.

y Sense of do it yourself

y He does not wait for infrastructure

to be created to support hisoperations. He goes out and buildsit himself; be it a power plant forhis petrochemical enterprise or acanal to bring water from large

distances for his cooling plant.

"Small men like me don't inspire big words!"

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Dhirubhaism No 2: Be A Safety Net For

Your Team.

y There used to be a time when ouragency Mudra was the target ofsome extremely vicious propaganda

by our peers,

y He gently asked M if They neededany help in combating it.

y Knowledge that he knew and caredfor what his team was goingthrough, and that he was there forThem if needed him, worked

wonders for confidence.

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Dhirubhaism No 3: The Silent Benefactor.

y When he helped someone, he

never ever breathed a wordabout it to anyone else

y "Expect the unexpected" just

might have been coined forhim.

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Dhirubhaism No 4: Dream Big, But Dream With

Your Eyes Open.

y

Whenever a task seemed too big to beaccomplished, he would reply: " No is no answer!"

Not only did he dream big, he taught all of us to do

so too.

y His favorite phrase "dream with your eyes open"

"It's difficult but not

impossible!"

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5. Dhirubhaism: Leave The Professional

Alone!

y Management techniques of himis different

y The simplest strategies are oftenthe hardest to adopt.

ylet professionals do the work

y This technique enforcedresponsibility among his team

"Produce your best."

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6. Dhirubhaism: Change Your Orbit, Constantly!

y Dhirubhai's "orbit theory."

y This is no miracle.

yWhen you change orbits, you

will create friction. The good

news is that your enemies

from your previous orbit will

never be able to reach you inyour new one.

y By the time resentment builds

up in your new orbit, you

should move to the next level.

Changing orbits

is the key to

our progress as a

nation.

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7. The Arm-Around-The-Shoulder Leader

y It was Dhirubhai's very ownsignature style

y

Arm around the shoulder -W

iththat one simple gesture, hemanaged to achieve many things.

y This tendency that he had, todraw people towards him,manifested itself in countlessways.

that did much more than words in letting

me know that I belonged,

that I had his trust, and that I had him on my side!

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8. The Dhirubhai Theory Of Supply Creating

Demand

y He was not an MBA. Nor an

economist. But yet he took

traditional market theory and

stood it on its head. And

succeeded.

yWhen everyone in India would

build capacities only after a careful study of

market, he went full steam ahead and created

giants of manufacturing plants with unbelievableca acites.

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9. Money Is Not A Product By Itself, It Is A

By-product, So Don't Chase It

y He did not breathe a word about

profits, nor about becoming the

richest

yA by-product is something that

you don't set out to produce. It isthe spin off when you create

something larger.

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SUCCESS

y Success in attaining that goal will eventually ring in

the cash. For instance, if you work towards creating

a name for yourself and earning a good reputation,

then money is a logical outcome.

y People will pay for your product or service if it is

good

y Sounds too simplistic for belief?Well, look around

you and you will know exactly how true it is.

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Q n A