Value from family differences

It was a terse note on June 18, 2005 from Kokilaben D Ambani that many thought would put an end to a public spat between her two sons-Mukesh and Anil Ambani-over ownership of the Reliance empire. Three years later, the spat continues, the latest over Anil's plans for a stake sale in his flagship Reliance Communications (RComm) to South Africa's MTN. This time, no one's stepping in, not even the matriarch. Paradoxically, after the split, both sides of the Reliance empire have grown manifold in value under the two brothers. Is that why no one's complaining?

In her 2005 statement, Kokilaben Ambani said, "With the blessings of Srinathji, I have today amicably resolved the issues between my two sons keeping in mind the proud legacy of my husband. I am confident that Mukesh and Anil will uphold the values of their father and work towards protecting and enhancing value of over 3 million shareholders of the Reliance group."

Mukesh, who got Reliance Industries Ltd (RIL) and the erstwhile Indian Petrochemicals Corporation Ltd, and Anil, who took control of what was then Reliance Infocomm, Reliance Energy and Reliance Capital, did indeed protect and enhance shareholders' interest. They added new businesses and pumped in much investment and vigour into existing ones.

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