Brothers poles apart! Mukesh Ambani, Nita Ambani richest Indians, Anil Ambani's firms sold, liquidated under mountain of debts.

Will Anil Ambani, the younger son of iconic businessman Dhirubhai Ambani make a comeback soon? The two brothers are at the opposite ends of business and fortune. Mukesh Ambani is one of the richest persons in the world, his younger brother's business lies in ruins. While Dhirubhai was a symbol of a rags-to-riches journey, Anil Ambani did just the opposite and can be called an example of riches to rags. While his elder brother Mukesh Ambani has emerged as the richest Indian, Anil's fortune nosedived. He inherited the business empire with a market capitalization of Rs 4 lakh crore, which has come down to a market cap of Rs 33,000 crore, a great fall indeed. On the other hand, the market of Mukesh Ambani group companies stands at Rs 8,59,074 crore. 

(Mukesh Ambani, Nita Ambani, Anil Ambani and Tina Ambani)

Reliance ADAG buried under mountains of debts

Anil Ambani's Reliance Power and its parent Reliance Infrastructure are the only companies of the Reliance ADAG (Anil Dhirubhai Ambani Group) that are in profit. All other group companies, including Reliance Communications, Reliance Capital and the media businesses are under heavy burden of losses and debts. 

While Mukesh Ambani successfully built Reliance Jio as a multi-billion dollar telecommunication giant, Anil Ambani's Reliance Communications became insolvent and soon it will be liquidated as it failed to get a buyer. On the other hand, Jio Platforms Limited, a majority-owned subsidiary of Reliance Industries Limited has a valuation of more than US$100 billion. 

Anil Ambani's firms sold, liquidated

Anil Ambani's other company Reliance Capital came under regulatory scrutiny and dubious transactions and was eventually taken over by RBI and sold off. IndusInd group recently completed the acquisition of Reliance Capital. Yet another ADAG company Reliance Big FM was sold off in February this year. The Reliance ADAG is left with Reliance Power and Reliance Infrastructure as the only companies somehow floating.

How did problem begin?

Three years after Dhirubhai Ambani's death on July 6, 2002, Mukesh Ambani and Anil Ambani decided to part ways. According to the deal brokered by their mother Kokilaben, flagship Reliance Industries remained with elder brother Mukesh Ambani. Anil Ambani got Reliance Capital, which included a popular mutual fund and insurance companies; Reliance Infocomm, the telecom arm; Reliance Energy, and Reliance Big FM, the entertainment business. 

However, the problem began soon after Mukesh Ambani's RIL failed to keep the business commitment made at the time of separation. An important part of the separation deal was to supply gas from RIL’s KG D6 fields to Anil Ambani’s Reliance Natural Resources Limited (RNRL) for $2.34 per unit. However, RIL refused to keep the promise citing government pricing regulations. It deprived a crucial stream of cash critical to the younger brother’s empire and the business rivalry began. However, luck did not favour Anil Ambani. He is in tatters in complete contrast to his elder brother, the richest man in the country.