Anil Ambani: The Story Of The Fallen Billionaire

Anil Ambani is no longer a billionaire and his net worth has dropped from Billions to mere 0.5 Billion in the past 11 years. He has sold all of his major companies to pay for all the loans taken by the banks. Over the years, he has sold Big Cinema, Reliance Big Broadcasting, and Big Magic.

The times were not this bad for him, the brother of India’s Richest Man, Mukesh Ambani.

After the demise of Dhirubhai Ambani, their Father, in 2002, the 28,000 Crore Reliance Empire was divided between both the brothers, Mukesh and Anil. Mukesh was given the Oil Business, The Reliance Industries Limited, and The Indian Petrochemicals. Anil got the Telecom Business, Reliance Infocomm, also Reliance Energy, Reliance Capital, and Reliance Natural Resources. Things went smoothly over the years after the division and both Mukesh and Anil were becoming more successful as time passed. Anil even bought other companies, in 2005 he bought Adlabs Films and signed a $1.2 Billion deal with Dreamworks and also entered the infrastructure business.

In 2008, Anil Ambani was estimated to have wealth worth $48 Billion by Forbes. He was at the pinnacle of success at this pint of his life but things were not going to be so easy for him in the future. In 2014, things went bad, his power and infra companies had taken a huge amount of debts and now it was time for him to repay them. The business wasn’t running smooth and he was not in a position to repay the debts as most of his companies were running into losses. Therefore, Anil had no option other than selling his companies’ assets to clear all his dues.

A big blow came in 2016, that too from his own family, when his elder brother, Mukesh Ambani entered the telecom business and launched Jio. His entry in this business destroyed the legacy of big players of the telecom market, Airtel’s profit was hit massively and Idea and Vodafone were forced to merge in order to remain in the industry. Talking about Anil Ambani’s telecom business, the RComm had its end.

Being a businessman, you are entitled to face problems in your path, but it is how you face them to reach success. In 2019, the Supreme Court summoned Anil Ambani and stated that if his company, RCom, didn’t compensate all the dues, he would have to go to jail. He had to pay 550 Crores of dues of Ericsson, but he didn’t have it. Mukesh Ambani paid for Anil’s dues and bailed him out.

Anil’s problems have not ended and he still has a lot of dues to fulfill. In March 2018, he had total debt of 1.7 Lakh crore. Recently, he claimed that Reliance Group paid 35,00 crore of loans in the past 14 months. Anil had to sell his stake in Reliance Nippon, one of his biggest assets worth 13,500 crores. Now he is at $0.5 Billion net worth, less than the value of Mukesh Ambani’s house Antilia, which is estimated to be over billions of dollars. So this was the story of the fall of one of India’s business tycoon.

 

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