By 2008, Anil Ambani was the sixth richest person in the world and had a net worth of $42 billion. In 2008, he made history by listing Reliance Power, the largest IPO in Indian history. He also invested $2 billion in Reliance Communications, the country’s leading mobile phone service provider. At the time, he was in talks with MTN, another telecom giant.
In 2007, Anil Ambani’s son Mukesh Ambani launched an entertainment business by establishing the Adlabs Films and supporting the company. In 2009, he renamed the company Reliance MediaWorks and formed a joint venture with Steve Spielberg’s DreamWorks. The two companies have collaborated on numerous Hollywood movies, including Lincoln and Spielberg’s The Avengers. In 2008, Ambani was found guilty of criminal contempt by a Mumbai court after he failed to pay a debt owed to the Swedish equipment maker Ericsson. In spite of his success, his actions robbed him of a quarter of his shareholder wealth.
After graduating from the University of Pennsylvania, Anil Ambani joined the family business. The company he created specializes in construction and engineering. His Reliance Infrastructure has made a loss of about Rs 913 crore in 2018-19. He was born on 4 June 1959 in Bombay. His father, Dhirubhai Ambani, had two sons – Anil and Anmol. He holds a Master’s degree in Business Administration.
Mukesh Ambani’s fortune was worth $45 billion in 2006. The value of his car fleet was valued at $3 million, and his luxury yacht Tian was worth $56 million. He claims to own other businesses and corporate entities, which makes it difficult to know exactly what his net worth is. However, Mukesh Ambani’s net worth in rupees is still significantly higher than Mukesh’s.
The older Ambani inherited his father’s fortune, and became one of the richest men in the world. It is believed that the elder Ambani has a net worth of over $97 billion. Meanwhile, the younger Ambani lost his fortune after he was implicated in the leak of the Pandora Papers. And a report by the ICJ reveals that his father’s companies have been linked to offshore firms.
The Reliance Group had a vast portfolio of businesses and assets that include oil, gas, and telecommunications. Moreover, it holds stakes in entertainment, electricity, and infrastructure. Reliance Power was subscribed within sixty seconds, and the company’s media company renamed itself Reliance MediaWorks. This reflects the huge scale of his wealth. In addition to his business, he is credited with creating some of the country’s biggest IPOs.
In 2008, Anil Ambani’s net worth was $42 billion, but it had sunk to nearly $8.8 billion by 2011. Then, in 2013, his net worth had fallen another $3 billion to just under $5 billion. By 2016, it had plummeted to $8.8 billion. Throughout the years, many of his companies have become insolvent. His telecom business Reliance Communications has struggled to compete with the top companies and has lost consumers.
Apart from his business and investments, Anil Ambani has also been active in the entertainment industry. He has spent hundreds of millions of dollars in his film companies. He has also invested $825 million into the DreamWorks studios in 2009 and helped produce the Academy Award-winning movie “Lincoln” in 2012.
However, the billions Ambani has made from his businesses are not always as straightforward. His Reliance Communications company owes creditors more than $700 million. He owes approximately Rs5,000 crore to three Chinese banks. This means that he is expected to pay more than double the amount. And he has a long way to go to repay the dues. In fact, a lawsuit is expected to cost him his billions.
Mukesh Ambani’s entry into the telecom industry killed RCom. He acquired Infotel Broadband in 2010 and launched Reliance Jio Infocomm in 2016, which sounded the death knell for the entire telecom industry. In May 2018, Reliance Communication went into insolvency. Ericsson, the telecom equipment manufacturer, claimed it owed over Rs 1,100 crore to RCom. The Supreme Court threatened to swindle Anil Ambani if he did not make the payment. Anil Ambani’s net worth in rupees decreased from $7 billion to zero.
The Ambani brothers were in the news for a variety of reasons. The Ambani brothers’ Reliance Communications failed to pay a loan to Ericsson after Ambani failed to pay the debt. As a result, Ambani and his brothers stepped in and bailed out the company. Another incident occurred after the three ADAG companies withdrew their contract with Franklin Templeton, a financial institution that holds an unlisted NCD. In the aftermath of this, Franklin Templeton wound six debt funds.