Realince industries Ltd largest public company of India with market capitalisation of $241.5 Billion dollars. the company that shape the economy of india .
Founder - Dhirubhai Ambani
Founded - in 1965
Industry - conglomerate
Revenue - $119.9 Billion ( 2024)
Market capitalisation - $241.5 Billion dollars
What we learn from this blog post
- About Dhirubhai Ambani
- How company started
- How company grow
About Dhirubhai Ambani
Dhirajlal Hirachand Ambani (Dhirubhai Ambani) was born on December 28, 1932, into a small Baniya family in Chorwad, Gujarat. His father was a village school teacher. At the age of 17, he moved to Aden (now in Yemen) for work. There, he started working in a trading firm, where he gained knowledge about finance and trade.
However, in 1958, he returned to India with the ambition of starting his own company.
New company
After returning from Yemen, Dhirubhai Ambani and Champaklal Damani started a new business called Majin. They imported polyester and exported spices to Yemen. Champaklal Damani had also worked with Dhirubhai in Yemen.
The first office of their business was set up on Narahinta Street, Masjid Bunder. However, after working together for seven years, they ended their partnership in 1965.
Realince industries Ltd
After ending his partnership with Champaklal Damani, Dhirubhai Ambani continued his polyester business. In 1966, he founded Reliance Textile Industries Pvt. Ltd. in Maharashtra and also established a synthetic fabrics mill in Naroda, Gujarat.
This marked the beginning of Reliance. However, the company’s growth was driven by a series of strategic steps that transformed it into one of India’s most successful enterprises.
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Polyester yarn business
After the end of his partnership with Champaklal Damani, Dhirubhai Ambani continued his involvement in the polyester yarn business. In 1966, Reliance Textiles Industries Pvt. Ltd. was incorporated in Maharashtra, marking a new beginning for Ambani with a clear focus on polyester yarn.
At that time, the government was encouraging the export of goods. It also introduced a new policy stating that if you exported goods worth ₹1,000, you were allowed to import goods of the same value.
Dhirubhai Ambani saw this as an opportunity. He started exporting spices and clothes and, in return, imported polyester yarn. This smart move allowed him to earn profits from the entire transaction.
To expand this business, the company established a synthetic fabrics mill in Naroda, Gujarat—its first manufacturing facility. At that time, the Indian government encouraged businesses that imported raw materials and exported finished goods. This policy significantly benefited Dhirubhai Ambani’s polyester yarn venture, turning it into a game changer for the Indian textile industry.
In 1975, to further grow its textile business, Reliance launched the “Vimal” brand. Known for its high quality and affordable pricing, Vimal quickly became a household name across India and came to symbolize Reliance Textiles Industries Pvt. Ltd.
The company underwent several name changes over time. On May 8, 1973, it was renamed Reliance Textiles Industries Limited.
In 1979, Sidhpur Mills, a textile company, was merged into Reliance. The following year, in 1980, the company established a polyester filament yarn plant in Patalganga, located in the Raigad district of Maharashtra—further strengthening its presence in the textile sector.
In 1977, Reliance Textiles Industries Limited launched its Initial Public Offering (IPO) to raise capital for further expansion and growth. This IPO marked a historic moment, as it was one of the earliest and most significant public offerings in Indian corporate history. The response was overwhelming—the IPO was oversubscribed by seven times, reflecting the immense trust and excitement among investors.
Expand in other businesses
Reliance Industries Ltd began its journey with great success in the textile market. However, Dhirubhai Ambani was a visionary leader who understood that long-term stability for a company requires diversification. With this foresight, Reliance started expanding its business beyond textiles into sectors like oil, gas, telecommunications, and information technology, among others.
Realince petroleum
In 1993, Reliance began raising funds for Reliance Petroleum and became the first Indian company to attract capital from foreign investors. This was one of the company’s most significant achievements, highlighting how valuable and trusted Reliance was even at that time—so much so that international investors were eager to invest in it.
In 1998, Reliance took over Indian Petrochemicals Corporation Limited (IPCL), during a period when the Indian government had begun the privatization of public sector enterprises. Between 1998 and 2000, Reliance also built an integrated petrochemicals complex in Jamnagar, Gujarat, which went on to become the world’s largest refinery.
Telecommunication
Telecommunication is one of the fastest-growing industries in the world, and recognizing its potential, Reliance decided to enter this sector. In 1995–96, the company made its initial move into telecommunications through a joint venture with NYNEX, a USA-based company. Following this, Reliance began promoting Reliance Telecom Private Limited in India.
Today, we all enjoy the services of Jio, but if we look deeper, we realize that Jio is an evolved version of Reliance Telecom. The foundation of India’s telecommunications industry was laid by Reliance Telecom, which paved the way for what we now know as Jio.
Reliance retail
In 2006, Mukesh Ambani launched the retail arm of Reliance Industries Ltd., which has grown to become the largest retailer in India in terms of revenue. By 2024, Reliance Retail operates over 18,836 stores across the country. The company has generated more than $36 billion in revenue, and its valuation is estimated to exceed $100 billion.
Other businesses
Reliance Industries also has several subsidiaries operating in different sectors, such as Network18 Group for news and entertainment, Reliance Industries Infrastructure for cross-country petroleum pipelines, Reliance Web Hosting, and many more.
Realince industries dominance
Whenever Reliance Industries enters a new sector, it doesn’t just participate—it dominates. For example, when Reliance launched the Vimal brand in the clothing industry, it quickly became a household name. People were willing to pay a premium for Vimal fabrics, highlighting the brand’s strong presence and influence.
Similarly, when Jio entered the telecommunications sector, it disrupted the entire industry with its aggressive pricing and innovative offerings. Within a short period, Jio gained massive market share and reshaped consumer expectations.
Time and again, Reliance Industries Limited has demonstrated that wherever it steps in, it reshapes the market landscape and establishes a commanding presence.
Risk taking
One of the lesser-known stories about Dhirubhai Ambani’s early business ventures is how he strategically took losses on exports to capitalize on government trade policies. During that era, India had a policy allowing businesses to import goods equal in value to what they exported. Dhirubhai saw an opportunity where others saw a dead end.
He exported spices and other goods—even at a loss—not for immediate profit, but to gain the license to import polyester yarn, a high-demand product in India at the time. Once imported, the polyester was sold at a significant profit. This bold and unconventional move laid the foundation for Reliance’s entry into the textile industry and showcased Dhirubhai’s sharp business acumen and willingness to take calculated risks.
Years later, Mukesh Ambani followed a similar path of boldness when launching Jio. He offered free 4G data and voice services for several months—an audacious move that disrupted the telecom industry. While many saw it as a gamble, it turned out to be a masterstroke, giving Jio a massive user base and eventually reshaping the digital landscape of India.
Present time
Reliance Industries was founded by Dhirubhai Ambani in 1965. Today, the company is led by Mukesh Ambani. It stands as India’s largest publicly listed company in terms of market capitalisation, valued at $241.5 billion. In 2024, Reliance Industries generated over $119.9 billion in revenue.
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