THE AMBANIS RIVALRY

2004-2005

It was a shock for the corporate world and shareholders , when the feud between ambanis siblings came in public glare. To settle the ongoing dispute among brothers k v kamath , then icici chairman proposed a 40:30:30 ratio . According to which the whole property will be divided among the brothers in 30:30 ratio , and the rest 40 percent to mother and sisters.

. The result was

mukesh ambani got reliance industries and ipcl (indian petroleum corporation ltd), he renamed it to RIL.
anil ambani got reliance infocomm ,reliance energy and reliance capital,he renamed it to ADAG.
At the time of divide reliance has over 97,000 crore in revenue

2008 rivalry resurfaces

Again the brothers were at loggerheads , when RCOM anil ambani company went to ink deal with MTN , south african giant telecom company.After the failed talks of MTN and AIRTEL (read the article BHARTI_AIRTEL and MTN), RCOM tried to get with MTN , thus becoming a major player both in india and abroad, but mukesh ambani led RIL, raised the issue of RIGHT TO FIRST REFUSAL,which he said was in family contract during the amicable settlement of the dispute.

RIGHT OF FIRST REFUSAL.

According to it suppose MR A has this right over MR B company , MR B wants to havedeal with XYZ, then it is possible only when MR A first refuses to ink deal with XYZ . If without MR A refusal ,MR B goes ahead then he have to face law.

Later on deal was scrapped , with both MTN and RCOM jointly refering to some legal issues. the battle continues see the ambanis rivalry part 2 .