The Reliance episode involving sibling rivalry between the Ambani brothers, has helped in bringing out the challenges before family patriarchs, corporate boards and regulators. Immediately after the demise of Dhirubhai Ambani, Shubhrangshu Roy, columnist, The Economic Times, had raised a few questions about the rightful place of Anil Ambani in the Reliance empire ("Read my lips, dear brother, nay son", The Economic Times dated August 14, 2002). He asked pointedly: "Where does Anil Ambani fit in Reliance's long-term game plan?" He also wondered whether or not people heard the Chairman of India's biggest industrial empire saying, "My father had the veto power, and that veto power is now mine." Roy, while agreeing that power comes with inheritance, raised another question: "Should such a preeminent position be decided, even if partly, by an accident of birth?" And in conclusion, he raised one last question: "Is Anil happy being the best professional around?" These queries summed up all the issues that could crop up in future in the case of Reliance, and many other family managed companies in India.
Business India (July 8-21, 2002, "The juggernaut rolls on") also had raised the question whether the brothers will stay together? The fortnightly business magazine quoted an industrialist (without naming him/her) predicting "They are bound to split." The story went on to say that Dhirubhai was not blind to the possibility as early as 1992, when he floated two companies (Reliance Polyethylene and Reliance Polypropylene) at the same time. |
