Anil Ambani: Celebrating Resilience on His 66th Birthday

Anil Ambani, the chairman of Reliance Group, celebrates his 66th birthday today, reflecting on a tumultuous journey marked by significant financial challenges and a remarkable comeback. Once the sixth-richest person globally, Anil faced bankruptcy in 2020 but has shown resilience through strategic pivots in his business ventures. His companies, Reliance Power and Reliance Infrastructure, have made impressive recoveries, achieving debt-free status and reporting strong profits. As he navigates the complexities of the business world, Anil's focus on sectors like solar energy and defense highlights his commitment to aligning with national priorities. Discover more about his inspiring journey and the future of Reliance Group.

By Narendra Chaudhary Jun 4, 2025, 10:19 IST

Anil Ambani's Journey

Anil Ambani, the head of the Reliance Group, marks his 66th birthday today, June 4, 2025. Once a powerhouse in the Indian business landscape, Anil has weathered challenges that could have overwhelmed many. His unwavering spirit and dedication have been pivotal in his journey. In 2008, he was recognized as the sixth-richest individual globally, boasting a staggering net worth of $42 billion. However, his path has been tumultuous, highlighted by a significant downturn when he declared bankruptcy in a UK court in 2020.

Challenges Faced by Reliance Group

Under Anil's stewardship, the Reliance Group encountered substantial debts, legal issues, and intense public scrutiny, yet he remained steadfast. Following the division of Reliance Industries in 2005, he took charge of various sectors, including telecom, finance, infrastructure, and energy. His early achievements earned him accolades, including the 'Businessman of the Year' title from prominent publications. However, the initial success of Reliance Power's 2008 IPO, which raised ₹11,563 crore, was followed by a decline in his business empire.

Financial Struggles and Legal Battles

Reliance Communications and Reliance Capital faced insolvency in 2019 and 2021, respectively, due to significant debt defaults. By 2020, Anil's net worth had dwindled to zero, and he encountered numerous legal hurdles, including a ban from the securities market imposed by SEBI in August 2024. A debt dispute with Ericsson in 2019 nearly led to imprisonment, but his elder brother, Mukesh Ambani, intervened.

Anil Ambani's Resilience

Anil's resurgence is bolstered by his sons, Jai Anmol and Jai Anshul. Throughout his ups and downs, he has shown an ability to learn and adapt. His determination to recover from setbacks reflects a resilient spirit that refuses to succumb to defeat.

The Comeback of Reliance Power and Infrastructure

Reliance Infrastructure and Reliance Power have emerged as the shining stars of Anil Ambani's portfolio, serving as the foundation for his revival. These companies have made impressive recoveries, achieving debt-free status and reporting strong financial outcomes. Reliance Power, once heavily indebted, is now valued at ₹23,000 crore. In the last quarter of FY25, it reported a consolidated net profit of ₹126 crore, a significant turnaround from a loss of ₹397.56 crore in the same quarter the previous year.

Growth in Market Capitalization

Reliance Infrastructure also experienced remarkable growth, with its market capitalization soaring from ₹8,500 crore to ₹12,500 crore within a week in September 2024. The company's shares surged by 60% to ₹336.20 per share, the highest since 2018. Furthermore, it significantly reduced its standalone debt from ₹3,831 crore to ₹475 crore by November 2024.

Financial Performance of Reliance Power

In the second quarter of FY25, Reliance Power reported a consolidated net profit of ₹2,878.15 crore. The company settled ₹3,872 crore in guarantor obligations for its subsidiary Vidarbha Industries Power Ltd and saw its subsidiary Sasan Power repay a $150 million loan to IIFCL, contributing to the rise in its share price. Reliance Power is a key player in the solar and battery storage sectors, with a net worth exceeding ₹15,000 crore and a capacity of 2.4 GW in solar and 2.5 GWh in storage.

Future Prospects and Challenges

Reliance Infrastructure's net worth currently stands at ₹9,041 crore and is expected to exceed ₹12,000 crore with new investments. The company recently raised ₹2,930 crore through Foreign Currency Convertible Bonds (FCCBs) and operates in various sectors, managing projects like Mumbai's metro line and power distribution in Delhi through BSES Delhi Discom. In the defense sector, Reliance Defence has partnered with Rheinmetall AG to manufacture explosives in Ratnagiri, Maharashtra, as part of the Dhirubhai Ambani Defence City, following previous collaborations with Dassault Aviation and Thales.

Anil Ambani's Strategic Vision

Anil is quietly establishing a robust presence in defense and green energy, securing significant contracts, including Reliance Power's projects in Bhutan and partnerships in the defense sector. However, his journey is not without challenges. Some Reliance Group companies still bear substantial debt, and Anil is contesting SEBI's ban that limits his market access. Past failures, including the losses of Reliance Capital and Reliance Communications, highlight the dangers of excessive leverage. Nevertheless, learning from these experiences, Anil seems to be focusing on a debt-free approach for his current enterprises.

Conclusion

The resurgence of the Reliance Group can be attributed to Anil's strategic vision, particularly his emphasis on sectors like solar energy and defense, which align with national priorities.