Knowledge | Posted by Shwe Zin Win
Anil Ambani's failure story serves as a sobering lesson in how bad business choices and a lack of foresight can bring down a once-thriving empire.
With $42 billion in assets, Anil Ambani ranked as the sixth richest businessman in the world following the split of Reliance.
Anil Ambani, on the other hand, went from a peak to nothing, while Mukesh Ambani grew his business and rose to become one of the richest industrialists in the world.
Anil Ambani's own choices led to his downfall. He started many companies simultaneously, without proper planning or vision.
He dreamed big dreams of becoming a big player in telecom, power, infrastructure, and entertainment sectors, but his plans were poorly executed.
Higher than expected costs, wrong planning, and low returns started pushing Anil Ambani into debt.
The debt on Anil Ambani's companies started increasing, and he was forced to sell one company after another. Telecom company RCom sank due to his wrong decisions, and the debt of this company reached Rs 25 thousand crores.
Anil Ambani took loans from Chinese banks on personal guarantee, but he was unable to repay them.
He had to appear in the London court, where the court asked him to repay about Rs 5446 crore to three banks.
Anil Ambani made himself bankrupt in front of the court, stating that he had no money left.
Total debt was estimated to be around Rs 40,000 crore. Anil Ambani's net worth became zero, and he had to sell his wife's jewellery to pay the lawyers' fees.
He said that he had nothing left except a car and was living a simple life.
His total wealth as of February 2023 is around Rs 250 crore, and he owns a 17-floor house in Mumbai.
Three significant banks' debt was recently settled by Anil Ambani's Reliance, and now two of Reliance Power's subsidiaries, Kalai Power Pvt Ltd and Reliance Cleangen Ltd, have resolved a substantial debt of Rs 1023 crore.
Ref: Meet man, once 6th richest in world, then fell into Rs 40000 crore debt, sold his wife’s jewellery for…(dnaindia)
Photo Credit: dnaindia
