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Abstract

The case discusses the dispute between Mukesh Ambani and Anil Ambani relating to control and ownership issues of 1,000 billion rupees Reliance Group of companies, the largest family-owned business in India. The seven-month-old dispute was settled on 18 June 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 the family-owned businesses. The case also highlights the implications of the division, and the opportunities and challenges for the two brothers in the near future. The case is designed to enable students to: (1) study the importance of succession planning; (2) analyse the reasons that lead to splits in family-owned businesses; (3) examine the effects of family feuds on shareholders value; (4) recognise the importance of sound corporate governance practices and transparency in business; and (5) examine the implications of division in family-owned businesses. This case is aimed at MBA/PGDBA students, and is intended to be part of the business strategy, corporate governance and family-owned business curriculum.
Location:
Industry:
Size:
Very large
Other setting(s):
2002-2005

About

Abstract

The case discusses the dispute between Mukesh Ambani and Anil Ambani relating to control and ownership issues of 1,000 billion rupees Reliance Group of companies, the largest family-owned business in India. The seven-month-old dispute was settled on 18 June 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 the family-owned businesses. The case also highlights the implications of the division, and the opportunities and challenges for the two brothers in the near future. The case is designed to enable students to: (1) study the importance of succession planning; (2) analyse the reasons that lead to splits in family-owned businesses; (3) examine the effects of family feuds on shareholders value; (4) recognise the importance of sound corporate governance practices and transparency in business; and (5) examine the implications of division in family-owned businesses. This case is aimed at MBA/PGDBA students, and is intended to be part of the business strategy, corporate governance and family-owned business curriculum.

Settings

Location:
Industry:
Size:
Very large
Other setting(s):
2002-2005

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