Chapter 925 The whole story

In the Indian market, O2 Telecom and Reliance Industries Group formed a joint venture company, O2 Reliance Telecom. With the support of two powerful parent companies, this company has launched a price war through extremely favorable policies. In just two years, it has become one of the largest telecommunications companies in India in terms of user scale.

In fact, Reliance Industries Group, or Reliance Industries owned by Mukesh, did not have a telecommunications business at first.

This has to start with the split of Reliance Group.

Mukesh and Anil are the two older sons of Dhirubhai, the founder of Reliance Industries Group. After studying in the United States, they returned to India to join the family company.

In 2004, their father Dhirubhai died suddenly without leaving any will. At that time, Mukesh, the eldest son, took over the Reliance Group and became the chairman of the group, while his younger brother Anil became the general manager of the group and their mother became the honorary chairman.

After becoming the chairman of the group, Mukesh continued to develop new businesses, among which the oil industry gradually became an important industrial pillar of the group.

However, at this time, his younger brother Anil began to feel dissatisfied, thinking that he was "always working under his brother's shadow".

But Mukesh thought that his inheritance was natural. On the one hand, he was the eldest son, and he began to help his father with company affairs before he finished his studies; on the other hand, Mukesh thought he was proficient in chemical engineering (he studied chemical engineering at Stanford University in the United States), and no one could better control the company's core business - oil.

In addition, Mukesh would exclude his younger brother from every major meeting.

Feeling that he was being sidelined, Anil kept writing to his brother, complaining that he had no real power - for this reason, he even began to secretly manipulate the board of directors.

The elder brother, who had insight into all affairs, announced in an email to all employees that he would take full charge of all affairs of the group, and "the issue of group ownership has been resolved."

The younger brother who wanted to take the initiative did not expect to be defeated by his elder brother - he was angry and then submitted a 500-page report to the board of directors, listing his brother's mismanagement and false accounting.

Later, Anil even took his elder brother Mukesh to court.

The children of the richest man's family actually quarreled with each other, and the news spread all over the streets of India immediately.

The two of them accused and abused each other on TV, which once became one of the most watched programs in India.

This incident also shook the Indian stock market. In desperation, it is said that the then Indian Finance Minister and Prime Minister personally came forward to mediate the conflict between the two brothers.

It was their mother who finally made the two brothers reach a settlement.

It is said that the mother really couldn't stand the family's internal fighting. On the day of her 70th birthday, she gave the two brothers a "death order": a settlement must be reached on the day of their father's memorial day!

After their father passed away, the two brothers respected their mother very much, so after several days of discussion, the two sides reached an agreement on the division of property.

The two brothers and their mother each received 30% of the assets, and the remaining 10% of the family assets were divided among their two sisters.

After the separation, Mukesh mainly obtained assets in the petrochemical industry - Reliance Industries Limited and Indian Petrochemical Corporation.

Anil took over the assets in power, telecommunications and finance - three subsidiaries, Reliance Energy, Reliance Communications and Reliance Assets.

In order to pay tribute to their deceased father, although they divided the property, they still operated their respective businesses under the name of Reliance.

Mukesh established the current Reliance Industries Group based on the two subsidiaries acquired at that time, Reliance Industries Limited and Indian Petrochemical Corporation.

And the two parties reached an agreement that they would not enter each other's business areas in the next ten years.

After that, Mukesh's younger brother Anil's Reliance Communications developed into India's second largest telecommunications operator, and the company's market value continued to rise...

In 2008, Anil's personal wealth reached 42 billion US dollars, surpassing his brother Mukesh to become the richest man in Asia and ranked 7th in the world. It can be said that he was in great glory.

Of course, after the separation, his younger brother became more successful, so Mukesh would naturally be unwilling to accept it. Not only did he prevent his younger brother's Reliance Communications from cooperating with South Africa's largest telecommunications group MTN after the subprime mortgage crisis broke out...

In addition, he also entered the telecommunications industry in a roundabout way, through O2 Reliance Telecom, a joint venture with O2 Telecom, and entered the telecommunications industry before the ten-year period arrived.

At that time, India's mobile communications were almost all 2G networks, while O2 Reliance Telecom directly invested heavily in assuming a 3G network in India. Because O2 Telecom and Reliance Industries Group have strong capital strength, they are not only more advanced in mobile networks, but also directly launched a price war, pushing 3G networks to the market at extremely favorable prices, and even using O2 Telecom's usual tricks - users who sign long-term 3G network contracts can even directly get Dopod Smart series smartphones "for free".

In this way, relying on strong capital, O2 Reliance Telecom burned 150 million rupees in the first year of operation alone. As a result, they gained more than 100 million users in half a year, posing a great threat to Reliance Communications owned by Mukesh's younger brother Anil.

But at that time, Reliance Communications was in financial difficulties due to the subprime mortgage crisis, and its stock price plummeted, making it difficult to mount a strong counterattack against O2 Reliance Communications.

It seems that the dispute between the two brothers that Barron saw today is not the first time. From Anil's point of view, Mukesh violated the "agreement" between the two parties at the time and within the stipulated ten years Naturally, it would be very unpleasant to enter the telecommunications market and compete with yourself.

"The development of Reliance Communications has stagnated in the past two years, and there have been various problems. According to our investigation, Reliance Communications' current debt has exceeded US$5 billion, and their largest creditors are three banks from China... "

By the time Barron returned to his villa, his personal assistant Dalula Riley had already obtained some information about Anil's Reliance Communications:

"The largest creditor of Reliance Communications is China Development Bank. Since 2010, the other party has provided loans of approximately US$2 billion to Reliance Communications, including loans from two other Huaxia Banks. None of them have sufficient collateral. It’s a loan that relies on Anil’s personal credit, and the risk of default is still very high.”

Well, Barron still has memories of this matter in his previous life. After all, this matter was a big deal at the time. The banks in China later sued Anil to court, but even if the court ruled that Anil should pay back However, the other party still couldn't get the money, so in the end they had to drag it on...