How the Reliance (RIL) empire gets divided between the three siblings has been a hotly debated topic over the last few years.
Many attribute the unprecedented fund raising of about Rs 1.65 lakh crore in 2020 to be the 1st step in that direction. Funds were raised from a multitude of reputed global strategic and financial investors including the likes of Google, Facebook, KKR etc.
The significant fund raise and dilution was seen by some as RIL being finally open for a detailed external scrutiny, listing of businesses overseas and gradually handing the day to day operations of varied businesses to the professionals. All this in turn was expected to allow the succession/ division easier.
The 1st major decision in this regard has come in.
- Akash Ambani, 30, has been appointed as the Chairman of the telecom business, Jio Infocomm Ltd (JIL).
- Mukesh Ambani has resigned as Director of JIL with immediate effect. However, he continues to be the Chairman of Jio Platforms Ltd (JPL). JPL is the holding Company of JIL and also includes other digital initiatives of the group.
- Day to day executive position of MD has been entrusted to the confidante, Pankaj Mohan Pawar for the next five years.
Telecom business to Akash was widely expected. He along with his twin sister (Isha) have time and gain being attributed to make Jio what it is today.
However, what is interesting to me is the position that has been given to him.
Yes, Chairman is the topmost position in a Company. But for all practical purposes it’s the MD who runs the show. This is also the reason why we see Chairman and MD position being held by same person in so many Indian Companies.
My current belief factoring in everything is – all Reliance businesses will increasingly get managed by professionals. Family may not be involved in future as closely as it has been so far.
Let’s now wait what is in store for Isha (Akash’s twin sister, married in Piramal family) and Anant Ambani (youngest son).