Mukesh Ambani sets succession plan in motion: Isha, Akash and Anant join Reliance Industries board

This strategic shift signifies Mukesh Ambani's preparation to pass on leadership responsibilities to the next generation, as the conglomerate continues to expand across various sectors, from energy to technology.

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First Published Aug 28, 2023, 5:14 PM IST | Last Updated Aug 28, 2023, 5:14 PM IST

Mukesh Ambani, Asia's wealthiest individual, has initiated a succession plan for his vast conglomerate, Reliance Industries, spanning energy to technology. In a significant move on Monday, Ambani appointed his three children -- Isha, Akash, and Anant -- to the company's board.

Up until now, the three siblings had primarily been involved at the operational business level and had not held positions on the board of India's largest publicly traded company.

Reliance's board convened prior to the annual general meeting to officially confirm the appointment of twins Isha and Akash, as well as Anant, as "non-executive directors of the company," according to a filing with the stock exchange.

The Elevation

Last year, Mukesh Ambani, 66, paved the way for his eldest child, Akash Ambani, to assume the chairmanship of Reliance Jio Infocomm Ltd., India's largest mobile firm. Jio Infocomm operates under Jio Platforms, in which Meta and Google hold stakes, and is still chaired by Mukesh. Reliance Industries Ltd. is the parent company of Jio Platforms.

Isha, aged 31, was designated for Reliance's retail arm, while the youngest sibling, Anant, was aligned with the new energy business.

Although the siblings have served on the boards of various operating companies within the conglomerate, this marks their first appointment to the board of the parent firm.

In an official statement, Reliance indicated that their "appointment will take effect from the date they assume office after approval by the shareholders." Reliance is currently seeking shareholder approval to extend Mukesh Ambani's term for an additional five years, until April 2029.

Nita Ambani Resigns From Board

Mukesh's wife, Nita Ambani, who had been a director on the company's board, has resigned to facilitate her children's entry into the leadership of the conglomerate. The statement noted, "The Board of Directors also accepted the resignation of Nita Ambani from the Board respecting her decision to devote her energies and time to guide and enable Reliance Foundation to make an even greater impact for India."

The Ambani scions, educated at prestigious US Ivy League universities, have been groomed for leadership roles in Reliance's three core divisions: oil to chemicals, telecommunications, and retail. While retail and digital services are housed in separate wholly-owned subsidiaries, the oil-to-chemical or O2C business is a functional division of Reliance. The new energy business is also integrated within the parent firm.

What Mukesh Ambani's move signifies

This announcement signifies that Mukesh Ambani, who was previously embroiled in a bitter inheritance dispute with his younger brother following their father Dhirubhai's death in 2002, is preparing to pass the reins of the conglomerate to his offspring in the future.

Mukesh and his brother, Anil, engaged in a highly publicized battle for control of Reliance Industries. After a protracted feud, their mother brokered a split in 2005, with Mukesh assuming control of oil and petrochemicals, while Anil took over telecommunications, power, and financial businesses, among others.

Their fortunes diverged significantly, with Mukesh becoming the wealthiest individual in Asia, while Anil reported "zero" net worth in a London court in 2020. In recent years, the brothers appeared to have reached a truce. In 2019, Mukesh aided Anil in making a $77 million payment that averted imprisonment. Mukesh re-entered the telecom industry and established a financial business unit.

While Akash and Isha graduated from Brown and Yale, respectively, Mukesh dropped out of Stanford to build a petrochemical plant for his father. He subsequently transformed the textiles-to-petrochemicals enterprise into India's most powerful conglomerate, with the world's largest single-site integrated refinery complex, the largest telecom firm with 450 million subscribers, and the largest network of retail stores.

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