Indian billionaire names children to key posts, kicking off succession plan

MUMBAI • Indian billionaire Mukesh Ambani just got busy with the early stages of succession planning at his energy-to-technology conglomerate Reliance Industries, naming two of his offspring as chiefs of key units in his US$217 billion (S$302 billion) empire.

On Tuesday, the 65-year-old tycoon made way for his firstborn Akash Ambani, 30, to become the chairman of India's No. 1 wireless carrier Reliance Jio Infocomm.

Mr Akash Ambani's twin sister, Isha, is set to be appointed chairman of Reliance's retail arm, and an announcement was expected as early as yesterday, sources said.

While Reliance has telegraphed such a leadership transition, the move underscores Mr Mukesh Ambani's efforts to avert family feuds that have torn many wealthy clans apart, including his own.

The changes at the top come at a crucial time for Reliance. In a pivot from its legacy oil refining and petrochemicals business, the conglomerate is diversifying into e-commerce and green energy and expanding its retail footprint across the country.

In 2020, technology venture Jio Platforms lured more than US$25 billion from marquee Silicon Valley investors including Meta Platforms and Google. It has also unveiled ambitious plans to take on Amazon.com in the country, including in streaming.

"It shows a well-planned succession plan," said former professor Sankaran Manikutty, who taught at the Indian Institute of Management in Ahmedabad. "(Mukesh) Ambani just ensured the continuity of the business. For now, nothing will change for the conglomerate, but Mukesh Ambani will be around to guide the next generation."

Before their elevation, the twins played prominent roles as directors in those units. They were part of teams that negotiated with Meta when it decided to invest almost US$6 billion in Jio Platforms.

At annual shareholders' meetings in recent years, the twins have introduced new products and demonstrated various technology applications, such as virtual reality.

Their father has credited his children with helping nudge him into the Internet business.

Ms Isha Ambani, a Yale University graduate and a former McKinsey & Co consultant, kicked off Reliance's e-commerce foray into fashion retail in 2016 by starting online shopping portal Ajio.

Reliance Retail runs supermarkets, India's largest consumer electronics chain store, a cash and carry wholesaler, fast-fashion outlets and an online grocery store called JioMart. It reported US$2.6 billion in revenue for the year ended March this year. The unit operates more than 12,000 stores across the country.

Mr Akash Ambani, who studied economics and is an alumnus of Brown University, will oversee a telecommunications operator that debuted in 2016.

With its free calls and cheap data, Reliance Jio shook up an industry mired in debt and sent some competitors into bankruptcy.

The group is betting on this unit's pipes to deliver a range of services from e-commerce to entertainment in a market with almost 600 million smartphones. Reliance Jio is now gearing up for India's auction of 5G airwaves by the end of next month.

By bringing his children into formal roles, Mr Mukesh Ambani is also seeking to avoid repeating the mistake of his own father, Dhirubhai, who died in 2002 without leaving a will.

Mr Mukesh Ambani and his younger brother Anil feuded for three years over the control of Reliance, before their mother stepped in to resolve the dispute by carving up the empire.

The older sibling inherited the oil refining and petrochemicals businesses, while the younger one got the newer ventures in finance, infrastructure, power and telecommunications.

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