Industrialists welcome resolution of the rift

Industrialists here have welcomed the resolution of rift between the Ambani brothers. They feel that the settlement of the dispute augurs well for the Reliance group, its shareholders as well as the industrial community at large.

"It is a very good thing to happen both for the Ambani brothers and Reliance group shareholders," director of Foods, Fats and Fertilisers Ltd and chief advisor of the Central Organisation of Oil Industry and Trade (COOIT), O P Goenka, said.

Goenka feels that ICICI Bank chairman, M V Kamat, and others have done a 'marvellous' job in settling issues between the two sons of late Dhirubhai Ambani.

Managing director of Lanco Kondapalli Power Pvt Ltd, Y Harish Chandra Prasad, feels that the settlement is "good news for all gas-based projects, particularly those located in Andhra Pradesh". He is hopeful that his power project will get the required gas following this development.

Vice-chairman of the Confederation of Indian Industry and managing director of Visaka Industries Ltd, G Vivekanand, said that the quick settlement between the two brothers "is good for the industry, good for them and good for the shareholders".

He feels that following the settlement there is scope for both the brothers to flourish. "I am confident that industries belonging to both Mukesh and Anil Ambani will grow rapidly hereafter," he said.

Sudhir Reddy, managing director, IVRCL Infrastructure and Projects Limited, is of the view that the settlement is an eye-opener to all the family-owned businesses that ambiguity of any kind can lead to problems.

"Clear succession plans are required so that not only the company benefits but also that the shareholders and lenders are not left unsure about their future. Any development on this front will reflect on the share value of Reliance. Nonetheless, the Reliance tussle was an unfortunate incident in the Indian industry," he said.

Narender Surana, managing director, Surana Telecom Limited, said that the resolution of the Ambani issue is a very progressive move not only for Reliance but also for the entire stock market which was under a lot of uncertainty.

"The stock markets will now have a healthy progression. The true valuation of Reliance will also emerge with the settlement of this issue."

According to Surana, the settlement also shows that the Indian industry is mature enough to handle and settle such issues by taking progressive decisions. However, it would have been better if they had resolved the issues internally without resorting to any mudslinging, he added.

On the other hand, chief financial officer of Divi's Laboratories Limited, Kishore Babu, feels that the resolution of the tussle between the Ambani brothers will not have any repercussions on the Indian industry in general.

"It is specific only to the Reliance companies and now that the issue is resolved each of the two brothers will try to add value to their individual companies. Such spats can happen in any company as can be seen in business conglomerates like Bajaj. I don't think the industry is being affected in any way by the tussle or its resolution".

Like Babu, many other industrialist here also feel that the issue is confined to the Ambani family and thus refused to comment.

However, B V R Mohan Reddy, Infotech's chairman and chief executive officer, says that "it is not just an issue between the two brothers. The resolution holds prominence as three per cent of the nation's GDP lies in their hands and we could not have let the issue be unresolved."