Why Anil Ambani failed to pay debts
How Anil Ambani become billionaire to Millionaire
Failure story of Anil Ambani
In 2008 Anil Ambani was the 6th richest person in the world. At that time Anil Ambani's name was equated with a successful, visionary and future of India's business growth. But sadly after 12 year words like 'failure' and 'downfall' often come with his name. Anil Ambani was so rich that he used to take helicopter rides from his home in south Mumbai to Navi Mumbai. Which is just a few kilometres away from his home in Mumbai. He was often seen with famous bollywood celebrities like Amithabh Bachchan.
In 2005 he entered the entertainment sector. He acquired 'adlabs' films. In 2008 this had over 700 multiplex screens all over India. He also went global as he produced the Oscar winning movie 'Lincoln'. The major reason behind his downfall is his aggressive approach towards business investment. He would invest in different business sectors without proper knowledge of it.
The second major reason behind his downfall is debts and loans. His power and infrastructure companies took a very huge amount of loans. In 2014 Anil Ambani had a debt around 1.7 lakh crore Rupees. To pay off these loans he started selling assets and company's stacks.
He had taken so much loans that one of the reasons for 'Yes bank's downfall is Anil Ambani's inability to pay the debt of 12,800 Crore Rupees. But the most brutal and fresh wound was given by Mukesh Ambani when he launched 'Reliance Jio'. Reliance Jio was a big step in the Indian telecom market or we can say telecom industry. It affected all big players like Airtel, Vodafone and Idea also. But the hardest punch was delivered to Anil Ambani's Reliance communication. That one loss was Imortable for Anil Ambani and his company.
Within 3 years of Jio's launch, Reliance communication's market capitalization fell down over 98%. In February 2009 Supreme court of India ordered Anil Ambani to clear the debt of INR 500 Crore to Ericson or face jail if he is enabled to do so. But later Mukesh Ambani saved him from going to jail and paid all Anil Ambani's debt that was directly ordered by the Supreme court of India.
Today Anil Ambani is still clearing the last remaining of those loans. And his net worth has fallen to less than $100 million. From billionaire to being millionaire.
Lesson to learn from Anil Ambani's stragringly downfall
Never take huge amounts of loans for running your company.
Focus on few products and companies at the time.
Never invest too much on the field that is out of your reach.
Understand the difference between taking loans and paying sources.
Comments
Post a Comment
If you have any problem let me know