mukesh ambani news: Mukesh Ambani favored Walton family model for succession: Mukesh Ambani wants to lead the new generation on the lines of Walton family
- Ambani is preparing to hand over the business empire to the new generation
- Studied the succession models of billionaire families around the world
- These include the Walton to the Koch family.
- Ambani has accelerated the succession process in recent times.
India and Asia’s biggest rich Mukesh Ambani is preparing to hand over his $208 billion business empire to a new generation. For this, he is making such a foolproof plan of succession that there should be no dispute of any kind in the future. For this, he has studied the succession model of billionaire families around the world. These include the Walton to the Koch family. According to Bloomberg, Ambani has accelerated this process in recent times.
According to sources, the 64-year-old Ambani has liked the Walton family model of Walmart Inc the most. He wants to transfer the family’s holdings into a trust that will control the country’s most valuable company, Reliance Industries Ltd. Ambani, his wife Nita Ambani and their three children will have a stake in the new entity and will be on its board. In this board, trusted people of the Ambani family will be in the role of advisor.
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According to sources, the management of the company will be in the hands of professionals who will look after Reliance and its business. Reliance’s business spans from refining, petrochemicals to telecommunications, e-commerce and green energy. Ambani is currently considering several options and has not yet taken any final decision. Reliance representatives and Ambani did not respond to emails and phone calls from Bloomberg News in this regard.
Ambani has not made any public announcement to step down as chairman and managing director of Reliance, but his children are now seen to be more active in the business. In an address to shareholders in June, Ambani had indicated that his Akash, Isha and Anant would play key roles in Reliance. In view of the dispute between Mukesh Ambani and his brother Anil Ambani, Mukesh Ambani is walking very cautiously.
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What is Walton Family Model
According to sources, Ambani has liked the Walton family model of Walmart Inc the most. Ambani has liked the way his business transfer was managed after the death of the company’s founder Sam Walton in 1992. The Walton family, the world’s richest family, had handed over the company’s day-to-day business to managers since 1988 and set up a board to oversee it.
Sam’s eldest son Rob Walton and his nephew Steuart Walton are on the Walmart board. In 2015, Greg Penner, Sam’s grandson-in-law, was made the company’s chairman. It was criticized for giving preference to the family over the shareholders. Sam began working on the succession plan in 1953, 40 years before his death. He gave 80 percent of his family business to his 4 children.
Controversy between Mukesh and Anil
The 80s and 90s were great for Reliance under the leadership of Dhirubhai Ambani, but after the death of Dhirubhai Ambani in 2002, everything started to deteriorate. There was a dispute between the two brothers and the business had to be divided. The business of communication, power, capital came in Anil Ambani’s share, while Mukesh Ambani got the business of Reliance Industries.
After the death of Dhirubhai Ambani, his mother herself needed to intervene to settle the dispute that had arisen between the two children. In 2004, their dispute came to the fore, after which their mother Nightingale Ben divided the company into two parts and gave it to both the sons. Even the then ICICI Bank chairman Kamat had to be called in this partition. The dispute between the two brothers lasted for about 4 years.
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