The Battle Of Dhirubhai Ambani And Bombay Dyeing Ltd.
Introduction: -
It is one of the most famous and celebrated battle in Indian corporate history. Old-world Ballard Estate in Bombay taking on brash new Nariman Point. The ancient regime have argument with the nouveau rich.
The Warriors :-
Reliance Industries Ltd (RIL) run by Dhirubhai Ambani and Bombay Dyeing Ltd (BDL) led by Nusli Wadia
War Reason / Battleground :-
Bombay Dyeing was one of the textile kings in the pre-Ambani era, and the battle with Ambani began when both looked at the sunrise industry of polyester for growth. That's where the conflict erupted into covert - and even overt - warfare. PTA and DMT are two chemicals used to produce polyester which reacted to create a national explosion in the 1980s. Reliance Industries Ltd …show more content…
His vision of achieving global scale was a winner, and efficient project management gave him cost advantages that were unrelated to political influence alone.In those days, the biggest cost for any industrialist was high interest rates. Indian banks and project financial institutions - IDBI, ICICI, etc - were charging extortionate interest rates at which no project could be viable without manipulating the system. Ambani took a different route to cut his capital costs. He seeded the equity cult, and converted his huge debts at high premiums into equity. His effective cost of capital thus came to match the cost of comparative projects abroad. And thanks to his equity raising abilities, his projects always were set up at the lowest …show more content…
Time line :-
1967: With a capital of Rs 15 lakh Reliance Textile Industry floats.
1977: Reliance become publicly traded and owned entity.
1979: Convertible debentures were issued which became a hit. Rs 400 crore is the total takeover of the company. The firm got a licence to make PFY, with Orkay also.
1982: Based on PTA or DMT, the PFY plant on stream.; Orkay used few polyster chips on which the Government increased the custom duty. Government slaps "anti-dumping" duty on PFY.
1984: To produce PTA Reliance gets licence. Reliance started using imported PTA and stopped DMT. The war was on between Ambani and Wadia.
1985: V.P. Singh becomes the finance minister. Ambani machine slows down. PTA imports were restricted. The anti-dumping duty on PFY was
It is one of the most famous and celebrated battle in Indian corporate history. Old-world Ballard Estate in Bombay taking on brash new Nariman Point. The ancient regime have argument with the nouveau rich.
The Warriors :-
Reliance Industries Ltd (RIL) run by Dhirubhai Ambani and Bombay Dyeing Ltd (BDL) led by Nusli Wadia
War Reason / Battleground :-
Bombay Dyeing was one of the textile kings in the pre-Ambani era, and the battle with Ambani began when both looked at the sunrise industry of polyester for growth. That's where the conflict erupted into covert - and even overt - warfare. PTA and DMT are two chemicals used to produce polyester which reacted to create a national explosion in the 1980s. Reliance Industries Ltd …show more content…
His vision of achieving global scale was a winner, and efficient project management gave him cost advantages that were unrelated to political influence alone.In those days, the biggest cost for any industrialist was high interest rates. Indian banks and project financial institutions - IDBI, ICICI, etc - were charging extortionate interest rates at which no project could be viable without manipulating the system. Ambani took a different route to cut his capital costs. He seeded the equity cult, and converted his huge debts at high premiums into equity. His effective cost of capital thus came to match the cost of comparative projects abroad. And thanks to his equity raising abilities, his projects always were set up at the lowest …show more content…
Time line :-
1967: With a capital of Rs 15 lakh Reliance Textile Industry floats.
1977: Reliance become publicly traded and owned entity.
1979: Convertible debentures were issued which became a hit. Rs 400 crore is the total takeover of the company. The firm got a licence to make PFY, with Orkay also.
1982: Based on PTA or DMT, the PFY plant on stream.; Orkay used few polyster chips on which the Government increased the custom duty. Government slaps "anti-dumping" duty on PFY.
1984: To produce PTA Reliance gets licence. Reliance started using imported PTA and stopped DMT. The war was on between Ambani and Wadia.
1985: V.P. Singh becomes the finance minister. Ambani machine slows down. PTA imports were restricted. The anti-dumping duty on PFY was