It is sad to see RIL getting splitted.But at least it is finally over.A sign of un-professionalism which is really unexpected in the Ambani family. Think of the WALMART stores, after 2 generations and having many brothers and sisters they have not devided, but rather they have not only transformed it to a multi-billion dollars industry but also made it one of the World's largest chain of retail stores, becoming America's largest employer.
regards, Sir Saswat Mishra "First they ignore you, then they laugh at you, then they fight with you, then you win".--M.K.Gandhi
At the outset, it appears that Anil is walking away with a bigger chunk of the business. However, we must consider the value of Reliance Infocomm equity in RIL. RIL holds over 40% in the telecom venture valued at $14 billion but the business still does not throw up huge cash flows like the petrochem segment. It appears that Anil has been given the cash generating business to forego his share in the RIL's telecom business which is still unlisted. In any M&A or de-merger, business are not judged on the basis of sales but on the future discounted cash flows from each business. The petrochem business throws up cash of Rs 5000 crore every year, for the telecom business it will Rs 4000 crore in two years. Now, impute the value of the shares of Infocomm in favour of Mukesh, the carve up appears fairer. Surely, we can trust ICICI's project evaluation skills in this.
Arriving at the carve up took a few months, implementing it may take much longer. Since it involves many legal formalities, dividing Reliance overnight will be just impossible. You can expect a series of de-mergers and other complex transactions that will finally give the brothers their share of businesses.
there shouldnt be a split in the reliance industries unity is strength, n the brothers shouldnt fight among each other. reliance is emerging as a strong competitor in indian business n this issue shouldnt be an advantage for others. Mr.Dhirubhai Ambani wouldnt be happy if he was alive....
I am no way connected with Reliance Industries but would be extremely relieved to see a happy end to the succession dispute between the Ambani brothers.
But what I would not like is the division of the Reliance Industries. If this happens, it is going to reconfirm that Indian business, no matter how big or how progressive, is still run on family considerations and not by a strict commercial sense. It is the time of M&As. Worldwide, people, arch rivals and competitors included, have shed their egos and have joined hands in order to protect and promote their long term business interests. Division of RIL is neither going to help the country nor the two brothers.
I just wish a better sense prevails between the two players involved. Let the leading business family of India set a right example before the world. Let RIL remain one. That would, perhaps, be best tribute to the Late Dhirubhai H Ambani as well.
MK Garg Jt. General Manager Ordnance Factory Trichy - 620 016
The settlement of the issue will be better for all who are involved with Reliance directly or indirectly. This will give stability to Reliance and restore confidence of the investors. From this point onwards both brothers will have to prove that RIL grew because of him by establishing and proving their ventures.
But again,one mind is one and two are two. Both brothers had their expertise in their respective areas and one could focus 100% on his area without worrying about the other.
Let's hope that things go well and both brothers move forward to realise the dream of Dhirubhai
It is an irony that the returns on the investments made by millions of people in Reliance group are dependent on just these two warring brothers. However, with the "treaty" in the sight, it will bring relief to one and all.
It would be a great relief for the individuals involved, the Family, the enterprise, shareholders and country as a whole if the so called WAR comes to the END between the two Brothers. Immaterial is any one's position, the important part is the solution AND that a discord has been resolved which in the first place should have never risen.
My Best to both the brothers. Capt. R. K. Shrivastava, Mumbai
Are the figures shown in the carve up of turnover are correct ? as per that Anil Ambanis turnover will be much more than Mukesh Ambani. Then how the the distribution is same.
Appearently it seems that there is some mistake in the figures
