Abstract

The case discusses the dispute between Mukesh Ambani (Mukesh) and Anil Ambani (Anil) relating to control and 'ownership' issues of Rs. 1000 billion Reliance Group of companies, the largest family-owned business in India. The seven-month-old dispute was settled on June 18, 2005, with Mukesh getting control over Reliance Industries (RIL) and IPCL while Anil got control over Reliance Infocomm, Reliance Energy and Reliance Capital. The case describes the rapid growth of Reliance group under the leadership of Dhirubhai Ambani, the founder of the group. It illustrates the factors that lead to the division of family-owned businesses. The case also highlights the implications of the division, the opportunities and challenges for the two brothers in the near future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the importance of succession planning
• Analyze the reasons that lead to splits in family-owned businesses
• Examine the effects of family feuds on shareholder value.

Keywords

Reliance Group, Succession Planning, Family-owned Business, Family Disputes, Business Splits, Ownership Issue, Hindu Succession Act, Reliance Industries, Reliance Infocomm, Shareholding Patterns, Shareholder Value, Reliance Group and Succession Planning