Indian billionaire Mukesh Ambani sets succession plan in motion
The 65-year-old billionaire Mukesh Ambani has begun the early phases of succession planning at his energy-to-technology giant Reliance Industries Ltd, designating two of his children as the chiefs of major companies in his $217 billion empire.
Akash Ambani, the 30-year-old son of Reliance Industries Ltd (RIL) chairman Mukesh Ambani, was chosen chairman of Reliance Jio Infocomm, the conglomerate’s telecom subsidiary, on June 28. The junior Ambani, a Brown University graduate, has been involved with Jio’s operations since 2014 and was admitted as a member of the board in May 2020. He was a non-executive director before being appointed chairman of India’s largest telecom network, which has over 420 million users.
Jio’s leadership clarity is also a step toward the company’s preparation for an initial public offering. RIL indicated in 2019 that Jio will pursue an initial public offering (IPO) during the next five years. Jio’s IPO is projected to be one of India’s most significant IPOs.
According to RIL sources, this is part of Mukesh Ambani’s well-executed succession strategy and foreshadows additional succession-related statements in the future. Mukesh Ambani, who is handing over the reins to the next generation, will stay chairman of Jio Platforms as well as the wider RIL firm.
Akash’s twin sister Isha, is slated to be named head of Reliance Retail, with an announcement planned as early as Wednesday. Isha, a Yale University graduate and former McKinsey & Co consultant, launched Reliance’s debut into apparel retail in 2016 with the launch of the online shopping platform Ajio. Reliance Retail Ventures, like Jio Platforms, attracted numerous investors in 2020, including General Atlantic and KKR & Co, valuing the retailer at up to $62 billion.
Reliance Retail operates supermarkets, India’s largest consumer electronics chain shop, a cash-and-carry wholesaler, fast-fashion stores, and JioMart, an online grocery store. It generated $2.6 billion in revenue for the fiscal year ending March 20, 2022. The division runs over 12,000 outlets across the country.
Ambani is also attempting to avoid making the same error that his father, Dhirubhai, made when he died in 2002 without leaving a will. Mukesh and his younger brother Anil fought for three years for control of Reliance before their mother intervened and divided the business. The older sibling received the oil refining and petrochemicals industries, while the younger sibling inherited the newer enterprises in finance, infrastructure, electricity, and telecommunications.
According to the Bloomberg Billionaires Index, Mukesh is Asia’s second-richest individual, with a net worth of around $91 billion.
