Earlier on Monday, the board of Reliance Industries Ltd (RIL) approved the appointment of Isha Ambani, 31, Akash Ambani, 31 and Anant Ambani, 28, as non-executive directors. Addressing shareholders at the 46th annual general meeting (AGM), the tycoon said he would continue at the helm of RIL for five more years, with the induction of the GenNext Ambani juniors seen as part of the conglomerate’s succession planning.
Last year, Ambani had for the first time spoken about succession, mentioning his sons and daughter had taken leadership roles at different Reliance businesses. While Akash and Isha took up leadership roles in Jio and the retail business, respectively, Anant joined the new-energy business. The RIL board also accepted the resignation of Nita Ambani, who will now devote her energies towards Reliance Foundation. However, she will continue as a permanent invitee on the RIL board.
“Over the past few years, Isha, Akash and Anant, as first among equals of our next-generation leaders, have fully immersed themselves in every aspect of Reliance,” Ambani said in a virtual address. He said his children have been working with senior leaders in some of the most exciting projects in consumer businesses, digital enterprises, O2C (oil-to-chemicals), and green energy and green materials.
“I can proudly say they have earned their stripes through dedication, commitment, and hard work,” said Ambani, while recalling an “emotional moment” when he was inducted into the board by his father and RIL founder Dhirubhai Ambani in 1977.
For the next five years, Ambani said he will groom and empower all the next-generation leaders at Reliance, and mentor his children to help them “provide collective leadership and dependably take Reliance to greater heights of growth and value in the decades ahead”.
“I assure you that the combination of the experience of senior leaders and the ambition of new leaders will script newer and more exciting chapters in Reliance’s ever-growing book of achievements,” he said.
Industry watchers and experts were excited about the prospect of the third generation of Ambanis joining the board, especially when Mukesh Ambani is still active.
“The way Dhirubhai Ambani started Reliance and then Mukesh took it to greater heights, I am sure the children will do the same. It is good to get them on the board at a younger age to take responsibility and it would be good for shareholders of Reliance,” said Hemendra Kothari, chairman, DSP Investment Managers.
Kothari said although it is true that Dhirubhai had Mukesh by his side when he was at the helm, what Mukesh has done in the last 10 years with petrochemical, telecom, retail and now finance is commendable.
Shares of Reliance Industries closed 1.1% lower at ₹2,442.55 apiece on BSE.
Other family-run conglomerates have also seen the rise of the next generation. This January, the Birla scions—Ananya Birla, 28, and Aryaman Vikram Birla, 25, children of billionaire Kumar Mangalam Birla—were inducted as directors of leading flagship companies of the Aditya Birla Group, marking the entry of the fifth generation of the family in the $60 billion conglomerate. Noel Tata’s children—Leah, Neville and Maya—were inducted on the board of Tata Medical Centre Trust, a Tata Trusts affiliate in November 2022, in a move seen as developing the next generation of leaders.
Reliance, which typically uses the AGM to make big bang announcements, had a few up its sleeve on Monday too. These include plans to set up a battery gigafactory by 2026 to manufacture battery chemicals, cells and packs which will also include a battery recycling facility. Ambani also announced that fixed-wireless broadband product JioAirFiber will be launched on 19 September. That apart, the company said it is on track to complete all-India rollout of 5G services by December. Ambani also said Jio Financial Services will venture into insurance, potentially partnering with global firms.
The AGM also saw the appearance of global personalities and partners of Reliance. For instance, Larry Fink, chairman and chief executive officer of BlackRock, and Bill Gates, founder of Microsoft and one of the world’s richest persons, appeared at the virtual AGM. BlackRock, the world’s largest asset manager with an $11 trillion portfolio, recently announced a joint venture with Jio Financial Services to set up an asset management business in India.
“Jio Financial Services brings digital infrastructure capabilities and local market knowledge, and BlackRock brings global investment and risk management expertise,” said Fink.
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Updated: 29 Aug 2023, 12:33 AM IST
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