THE AMBANI SAGA: WAR AND PEACE

> July 2002 Dhirubhai Ambani

with Mukesh taking control of

flagship RIL, with interests in
petrochemicals, oil and gas
exploration, refining and
textiles. The Anil Dhirubhai
Ambani Group gets telecom,
power, entertainment and
financial services. The Group
includes Reliance
Communications Ltd, Reliance
Infrastructure Ltd, Reliance
Capital Ltd, Reliance Natural
Resources Ltd (RNRL) and
Reliance Power.
Post-split, RIL Group has a
turnover of ~114,011 crore
and market cap of ~223,452
crore on March 31, 2007. ADAG
has sales of ~31,017 crore and
market cap of ~116,855 crore on
March 31, 2007.

> Nov 2004 Feud between the

brothers becomes public

> Jun 2005 Family reaches a

settlement to split the Reliance

group in a deal brokered by
Kokilaben. The combined
Reliance Group has a sales
turnover of ~83,310 crore and
market cap of ~92,697 crore on
March 31, 2005.

Business Interests
ANIL AMBANI
> Financial services
> Telecom > Infrastructure
> Media & DTH > Power
> Healthcare

daughter worked at a firm that

was a consultant to Reliance
Industries. A new three-member
bench that also includes the
chief justice begins hearing
arguments from scratch

> 2006 Formal split takes place,

dies on July 6, 2002. Mukesh

Ambani appointed Reliance
Industries CMD and Anil Ambani
becomes vice-chairman. Group
has sales turnover of ~52,110
crore and market cap of ~37,688
crore on March 31, 2002.

> July 2008 Reliance Comm calls

off merger talks with South

Africa's MTN after Mukesh makes
a claim on the shares of Anil's
telecom firm
> Jun 2009 RNRL wins a case in the

Bombay high court, asking his

elder brother's company to
honour the family agreement.
RNRL files caveat in apex court on
gas price issue following the
order
> July 2009 Reliance Industries

says it will appeal to the Supreme

Court against high court ruling.
Says supplies to Reliance
Industries not possible at
$2.34 per unit, as it is bound by
government price of $4.20 per
unit. RNRL moves Supreme Court
to make gas supply from
KGD6 binding on

> Dec 18, 2009 Court finishes

hearing the case and reserves

judgement.
> May 7, 2010 The Supreme Court

rules in favour of Mukesh

Ambani. Says family MoU
between the two brothers is not
binding and asks the brothers to
renegotiate the deal. The RIL
stock rises 2.27% while ADAG
stocks are hammered, with RNRL
and Reliance Power falling
23% and 9%, respectively on
judgement day.

They are both my sons; they are progressing well in

their businesses. There is love between them.
The Ambani family stands together

Reliance Industries
RIL moves apex court
challenging high court order
saying the verdict erred in
deciding the three terms quantity, tenure and price of gas
supply
The government files a petition
wanting Ambani family pact that
deals with gas supplies to be
declared void. Government says
gas is its property
> July-Aug, 2009 Anil Ambani

lashes at oil ministry for allegedly

favouring his elder brother.
Matter rocks Parliament, where
Samajwadi Party leader Mulayam
Singh Yadav demands

resignation of Petroleum Minister

Murli Deora. But Deora says gas
does not belong to either
Mukesh or Anil Ambani, but the
government.
> Sep 2009 NTPC signs pact with

RIL to buy a part of natural gas,

other than the quantity under
dispute, at $4.20 per unit
> Oct 2009 A three-member

bench, including Chief Justice

K G Balakrishnan, of the Supreme
Court begins hearing arguments
in the case
> Nov 2009 The hearing is

disrupted when a judge

withdraws, citing potential
conflict of interest as his

> December-end, 2011 Family

gathers at Chorwad in Gujarat to

celebrate Dhirubhai Ambanis
birthday, unveil his memorial.
Ambani brothers Mukesh and
Anil will be seen together in a
family reunion for the first time
in recent past. Addressing local
media, mother Kokilaben said,
They are both my sons; they are
progressing well in their
businesses. There is love
between them. The Ambani
family stands together. This
statement leaves people
guessing if this is a prelude to
brothers getting together.

Business Interests

> May 23, 2010 Five years after a

KOKILABEN AMBANI, Mother of Mukesh & Anil Ambani, said at Chorwad

led RIL Group has a market cap of

~3,26,717 crore

bitterly-fought battle, the

Ambani brothers take a big step
towards reconciliation of their
feud. RIL, ADAG cancel 2006
non-compete agreements, hope
to work in harmony. Two groups
cancelled all non-compete
agreements that were signed in
2006. They hoped this would
lead to cooperation between
them in future.
As a goodwill gesture, RIL said it
would not enter the gas-based
power generation arena till
2022. ADAG hoped to reach a
new gas supply agreement
between RIL and Reliance
Natural Resources (RNRL), which
was at the heart of their dispute.
On May 21, 2010 the ADAG Group
has a market cap of
~1,08,792 crore,
while the Mukesh-

MUKESH AMBANI
> Oil, gas, petrochemicals
> Textile > Retail > SEZs,
ports, gas terminals > Life
sciences & biotechnology >
IPL

POSSIBLE OVERLAPS IN FUTURE > Telecom > Financial services > Power (non-gas) > Infrastructure > Media
How the two grew up alone

How much they have lost in 2011

~crore

RIL Group

Market cap ~crore

450,000

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ADAG Group
Rel Broadcast N
Reliance Capital
Reliance Comm
Reliance Infrastructure
Reliance MediaWorks
Reliance Power

Dec 31, 2010

Dec 26, 2011

% Change

Loss in Mcap

668.26
16,409.31
29,948.93
22,201.01
1,033.32
44,349.11

397.70
6,161.63
14,334.62
9,681.96
335.29
20,701.86

-40.49
-62.45
-52.14
-56.39
-67.55
-53.32

-270.56
-10,247.68
-15,614.31
-12,519.05
-698.03
-23,647.25

346,536.66
1084.10

249,182.21
467.93

-28.09
-56.84

-97,354.45
-616.17

Market Cap

343,936
267,949

~crore

ADAG Group

350,000

350,000

250,000

250,000

118,074
Sales

150,000

150,000

93,351

9,121
95,691
10,758

20,509.09

15,970.75

-22.13

Net Profits

19,159

3,035

50,000

Sales

50,188
Net Profits

FY10-11

Market cap on March 31 every year; data compiled on consolidated priority basis

50,000

4,558
0

0
FY05-06

BSE Sensex

Market Cap

26,120

RIL Group
Reliance Ind
Reliance Ind Infra

450,000

FY05-06

FY10-11
Data compiled by BS Research Bureau; Source: Capitaline