Mukesh Ambani Steps down to make way for his Son Akash Ambani. Is he learning from his father’s mistakes?
Mukesh Ambani won’t lead Reliance “Jio” from the front and appoints his son Akash Ambani as Chairman. Will he succeed where his father, Dhirubhai Ambani, failed? Is it the time for the young bloods?
Apparently, in 2002, Dhirubhai Ambani’s demise without a will caused a bitter family feud for the business takeovers. Looks like Mukesh Ambani doesn’t want to assume any risk.
For years, he has been putting his children into the industry in order to divide Reliance businesses in a structured way.
On June 27, 2022, Mukesh Ambani (65) stepped down as the MD and Chairman of Reliance Jio Infocomm Ltd after the board approved the appointment of his son Akash Ambani (30) as the Chairman and Pankaj Mohan Pawar as the MD.
The $217-billion group’s telecom arm is now led by Akash Ambani while his twin Isha Ambani leads Reliance Retail as the Chairman. Reliance Industries is the largest shareholder of the Jio Platform with a 67.03% stake, followed by Meta (Facebook) at 9.99% and Google’s 7.73% stake.
Concrete plans for their younger brother Anant Ambani might not be completely laid out yet, but he is currently appointed as the Director of Reliance New Energy.
For almost 8 years, Akash and Isha were a significant contribution to the company’s operations and innovations and played a key role in Facebook’s Rs. 43,574 crore investment in Reliance Jio. Along with being a top contender for 5G Network, Jio is working on a couple of innovations including The Jio Institute, Jio Green Vision Project, and Jio Glass (Mixed Reality).
According to Mukesh Ambani, it seems like the young blood is promising and possesses the spirit that prevailed during Dhirubhai’s time. The board and the company as a whole are reacting favorably to the leadership transition.
With rapid technological advancements, it is clear that it becomes quite essential for companies to initiate quick adaptation and appoint young potential leaders.
What do you think will be the future of Jio with this leadership transition?
