25-04-2012, 04:13 PM
A CONFLICT over Natural Gas Prices Flares Up
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INTRODUCTION
Dhirajlal Hirachand Ambani, one of the leading Indian businessmen, was born on December 28, 1932 in Chorwad, Gujarat. Popularly known as Dhirubhai Ambani, he heads The Reliance Industries, India's largest private enterprise.
Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad. Dhirubhai founded Reliance Industries in 1958. After that it was a saga of expansions and successes. Reliance, acknowledged as one of the best-run companies in the world has various sectors like petrochemicals, textiles and is involved in the production of crude oil and gas, to polyester and polymer products.
SOURCES OF THE CONFLICT
The origins of the dispute go back to July 2002, when the senior Ambani died intestate. Soon, disagreements emerged over the roles of the two brothers and a split became inevitable. Eventually, a truce was brokered in the summer of 2005 by senior banker K.V. Kamath; Dhirubhai's wife Kokilaben also played a key role in getting her sons to come to an agreement and sign a "family pact." As part of the deal, the flagship Reliance Industries Ltd. (RIL) went to Mukesh. His share also included the retail and natural gas exploration businesses. Anil got Reliance Communications (R-Com), the energy business, financial services, infrastructure and entertainment. According to Forbes, Mukesh is the world's richest Indian with a net worth of US$20.8 billion, while Anil clocks in at number 3 with US$10.5 billion. They are the world's richest brothers.
WINNERS AND LOOSERS
"Everyone is a loser”."The Ambani dispute has led to legitimate fears that business oligarchies and politicians with vested interests are distorting national policies. India does not as yet have robber baron capitalism, nor is inequality here ... as acute as it is in Latin America and the former Soviet Union. But the growing power of cartels and powerful business groups is evident."
CONCLUSION
Conflict on the whole is an inevitable aspect of every organisation, family or any other personal/ impersonal institutions. There have been discussions on how to avoid a conflict as well as on how can a conflict be beneficial for any situation. The responses have been numerous and varied. It is evident that there are no cut & dried principles to avoid or resolve a conflict because every conflict is unique on its own. Also there are no measures to weigh how much conflict is beneficial and how far henceforth is malignant. On a general note, it can be said that conflict is unavoidable but managing conflict is of crucial importance. If not steered in the right direction at the right time (if the harmful implications are not recognised at the earliest) conflict can lead to hazardous situations which may prove to be dangerous for the future of the institution in the long run.