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My remarks were torn out of context: Mukesh Ambani

A Correspondent in Mumbai | November 22, 2004 15:19 IST

Anil (left) and Mukesh Ambani. Getty ImagesReliance Industries Chairman Mukesh Ambani has finally broken his silence over the 'ownership issue' at the petrochemicals-to-telecom giant.

In a statement issued on Monday, he said that his remark on 'ownership issues' was torn out of context and that Dhirubhai Ambani has settled all ownership issues pertaining to Reliance within his lifetime.

"On my return last evening from the United States, I was shocked to find that my response to a question pertaining to the way our businesses are going to go in the future has been torn out of context. Obviously, it was an attempt to build a sensational story around the phrase 'ownership issues' leading to a spate of speculations and misrepresentation," said Mukesh Ambani.

"I am sensitive to the concerns that would have naturally arisen in the minds of our shareholders, various stakeholders and numerous well-wishers at the media blitz during the last few days. It is necessary to remove confusion caused by deliberate misinterpretation or genuine misunderstanding. Therefore, I would like to set the record straight," he said.

"As I was leaving a function, a TV journalist said: 'There have been a lot of rumours about the Reliance group and the way the businesses are going to go in the future.' In response I made two points, namely, that the question itself, does not recognise that 'Reliance is one of the strongest, professionally managed company,' and that 'there are other issues, which are ownership issues, those are in the private domain,'" said Ambani in the statement.

"This question-answer context makes it clear that I was responding to the query about the future businesses," he said.

"It is well known that in the process of its growth and expansion, Reliance is engaged in diversification, acquisition of running businesses and creation of new assets," said Mukesh Ambani.

"In such a rapid growth phase all big companies have to deal with several issues concerning corporate ownership of future initiatives. Reliance is no exception. I will like to restate that all such ownership issues are in the private domain. Placed in the context of the question put to me, it is obvious that my reply has nothing to do with the family ownership in Reliance," Ambani clarified.

"I will also like to take this opportunity to strongly deplore some totally unjustified and tendentious comments in a section of the media about our father Dhirubhai Ambani."

"Reliance is an eloquent testimony of Dhirubhai's farsighted vision, unflinching dynamism, and unparalleled wisdom. In keeping with the worldwide trend of transformation of family owned businesses, Dhirubhai took, within his lifetime, all necessary steps to separate ownership from management and made Reliance a world-class professionally managed company."

"With his extraordinary foresight, he has also settled all ownership issues pertaining to Reliance within his lifetime. I wish to assure all stakeholders that I am committed to uphold the steps taken by him and that the foundation of Reliance is and will remain very, very strong.

"I hope all speculation on this issue will come to rest with this clarification."

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Number of User Comments: 2

Sub: RIL will remain strong

Bravo! That was the answer expected from you in the most strong manner. You shal alwayes, rather you must be finding such scruplous thought carrying ...

Posted by Shailesh Urdhwareshe

Sub: RIL Reported rift

If you go by the clarification of Mr.mukesh Ambani,the journalist and the media will have to stand up and account for the errossion of capital ...

Posted by A.Nair


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