1. Mukesh Ambani and Anil Ambani have been in news for all the wrong reasons post the demise of their father Dhirubhai Ambani.
2. Through the post I will analyse the projects which are at stake for both the brothers and will also analyse the reasons for prevailing war between the two brothers and same is listed in the succeding pamagraphs:
3. The projects which are in favour for Anil Ambani are as listed below:
(a) Anil Ambani is looking for a favourable minister at Ministry of Petroleum who can get him the requisite nod for the gas from Reliance's blocks in KG basin for his Dadri power project in Uttar Pradesh (UP).
(b) Anil Ambani is trying to make companies like Bharti and Vodafone to pay more for spectrum which these companies are holding more than 6.2 MHz which will in turn help him to get additional GSM spectrum.
(c) Anil Ambani is also foraying for an increase in limit on foreign direct investment (FDI) in insurance sector from present 26 percent to 49% and same will give him a big boost for his becoming a finance giant.
4. The projects which are in favour for Mukesh Ambani are as listed below:
(a) Mukesh Ambani is trying to wean away from his brotherly responsibility to offer 40 MMSCMD of its gas production from K-G basin to Anil companies as the same is not in his business interests.
(b) Mukesh Ambani is propagating for foreign direct investment (FDI)in organised retailing and it will further enable him to de-risk his retail venture.
(c) He is intending to get benefitted by escaping the prospects of windfall tax that has ben projected by Amar Singh to tax the companies that may benefit from high oil prices.
5. To me the war between both the brothers appears to be an articulated one as the issues are trivial and same can be resolved with in a family. The reasons for articulated war is as listed below:
(a) Both brothers have political ambitions and thus either of them can remain aligned to either BJP, SP or Congress and thus one of the brothers will be in power politics irrespective of which party comes in power in centre. it is very important for their business to have right people in politics to get favourable decisions for their businesses.
(b) War drama between two brothers is a systematic design to spread their empire in all fields and segments.
(c) War drama is an art to evade taxes and same has been undertaken by a number of business houses as now income gets clubbed separately and thus tax exemption doubles.
(d) Post demise of Dhirubhai Ambani the stock price of Reliance was Rs 500 and peak achieved in 2008 was Rs 3200+ and that too after a number of demergers and that means the group is growing at compounded rate post division between two brothers.
6. I am of the personal opinion that Dhirubhai Ambani has brought up these two brothers as shrewd businessmen and only place I feel the difference could be is in form of temparaments of both the brothers. Anil Ambani is like a Rabbit who wants to undertake the decisions and execution of projects at a superfast speed and at times same may bounce back on him; whereas Mukesh Ambani is like a Tortoise and is like true Dhirubhai Ambani and believes in the fact that slow and steady wins the race. To me at times Anil Ambani appears to be a giant who is out to succeed by rising on the shoulders of others whereas Mukesh Ambani believes in creating wealth for the investors. Somebody may site the case of Reliance petroleum where Anil gave his stake to public but it was a gesture to cover his deed where he had priced the IPO at a hefty premium.
8. So, I leave the same with a food of thought for all to comment and contribute for the benefit of public at large by giving their experience related to both brothers companies. Personally I had a bitter experience with Reliance webworld where I bought a life long pack of internet and one fine day I logged to find the message that the terms and conditions have changed and if now I logged out my account will become Zero and the said company is from the stable of Anil Ambani.