Five years earlier, armed with a four-page agreement and a 300-word press statement, she showed she’d brokered peace between her warring sons. Five years later, Dhirubhai’s widow, Kokilaben Ambani, seems to have done it again.
Nobody will officially confirm or deny it, but those who work closely with either Mukesh or Anil Ambani or journalists working on the Reliance beat would tell you they saw it coming!
And, ever since Mukesh Ambani came to the Prime Minister’s Office last week to — sources say — to seek a review of the government’s gas utilisation policy, it was clear a ceasefire was coming, sooner than later.
PMO sources say RIL made a pitch that the government should allow gas supply to even new power plants, which, by government policy, were to be denied allocation. Only existing power, fertiliser and industrial users of natural gas were to get preference.
And so, three weeks after the Supreme Court judgement, the brothers Ambani have formally decided to “create an overall environment of harmony, co-operation and collaboration” between the two groups.
The influence of the dimunitive 75-year old matriarch of the family is tough to spot. Ask any professional manager from either side who worked closely with either brother on most issues, and all they said was “We only got to know about this today. It was negotiated between the brothers and their mother directly.”
Yes, there was pressure from the family and friends, from peers and from the government. In the end, mother power won. “The Supreme Court judgement was the biggest trigger, too much has happened for the last few years, a lot of energy wasted. It was clear this could go on and on as the two sides grow bigger. Today there is one clause of the MoU which is disputed, tomorrow there will be another. There had to be a closure,” said a close associate of the family.
To many, this is the best compromise. Anil Ambani needs gas. He gets that, his projects, shareholders, stay protected.
“Ask any Reliance old-timer what shareholders mean to the group. The last few days have seen a significant erosion in shareholder wealth for Anil Ambani group companies. The ceasefire will obviously soothe investor sentiments, especially for the ADAG pack,” says an analyst from a foreign brokerage house.
There was another financial aspect. If Mukesh had reneged on the arrangement, then by the family understanding, he would have had to compensate Anil for the loss of value. Not just the 28 mscmd of gas for 17 years; by the agreement, ADAG also had 40 per cent right over any new discovery by RIL. “The sum would potentially have run into billions. And, it was bound to open a new disputed flank. All that will be history now,” says a group official.
Sea Wind, the 14-storied official Ambani residence, has seen enough storms since Dhirubhai passed away in 2002, The Sunday ceasefire will, hopefully, clear the dark clouds once and for all, is the hope.
