No ownership issues: Mukesh Ambani

No ownership issues: Mukesh Ambani

Monday, November 22, 2004 (Mumbai):

Reliance Industries Chairman Mukesh Ambani today sought to quell a raging controversy over his reported differences with his brother, Anil Ambani.

Mukesh, who returned from the US last night, said his remarks on ownership issues were "torn out of context".

"My remarks (on ownership issues) were torn out of context. Dhirubhai Ambani has settled all ownership issues pertaining to Reliance within his lifetime," he said.

Sensational story

"Obviously, it was an attempt to build a sensational story around the phrase "ownership issues" leading to a spate of speculations and misrepresentation.

"I am sensitive to the concerns that would have naturally arisen in the minds of our shareholders, various stakeholders and numerous well-wishers at the media blitz during the last few days," he added.

"It is necessary to remove the confusion caused by deliberate misinterpretation or genuine misunderstanding. Therefore, I would like to set the record straight," he said in a two-page statement.

Mukesh said as he was leaving a function (last week) a TV journalist said "there have been a lot of rumours about the Reliance Group and the way the businesses are going to go in the future".

Future businesses

"In response I made two points, namely, that the question itself, does not recognise that Reliance is one of the strongest, professionally managed companies and that there are other issues, which are ownership issues, those are in the private domain," he added.

"This question-answer context makes it clear that I was responding to the query about the future businesses," he clarified further.

RIL Chairman said it was well known that in the process of its growth and expansion, Reliance was engaged in diversification, acquisition of running businesses and creation of new assets.

In such a rapid growth phase, he said all big companies had to deal with several issues concerning corporate ownership of future initiatives.

Committed to Dhirubhai's vision

"Reliance is no exception. I will like to restate that all such ownership issues are in the private domain. Placed in the context of the question to me, it is obvious that my reply has nothing to do with the family ownership in Reliance," he said.

Mukesh also utilised the opportunity to "strongly deplore some totally unjustified and tendentious comments" in a section of the media about Dhirubhai Ambani.

Assuring the shareholders that he was committed "to uphold the steps taken by him (Dhirubhai) and that the foundation of Reliance is and will remain very, very strong," Ambani also expressed the hope that the issue would be laid to rest with his clarification.

Smart bounce back

Following the clarification, the scrip of Reliance Industries bounced back smartly at the Bombay Stock Exchange.

At close, Reliance Industries was at Rs 532.80, a gain of over a per cent.

News From ndtv.com

(With PTI inputs)