New Delhi, July 10: More than a year after India`s largest private sector enterprise Reliance Group was split between brothers -- Mukesh and Anil Ambani, the elder brother
Said, "This is the first case where value has been enhanced."
"When you see restructuring or separations in a family or firm, value has almost always been destroyed. This is the first case where value has been enhanced. In that way it has
been a win-win ending," Mukesh Ambani, Chairman and Managing Director of over 20 billion dollar Reliance Industries Limited, said in an interview to `Newsweek`.
A year ago, with Reliance stock faltering, the matriarch of the Ambani clan stepped in to resolve the feud by dividing the conglomerate in two with Mukesh getting the flagship
Reliance Industries Limited while the younger brother got three companies namely Reliance Infocomm, Reliance Energy and Reliance Capital.
Since the break-up, Mukesh Ambani has finalised plans to invest more than 11 billion dollars (about Rs 50,000 crore) over the next decade to build two new satellite cities outside creaking, overcrowded metros of Mumbai and Delhi.
RIL`s scrip, which had fallen to about Rs 600 a year ago when the two brothers were involved in intense fighting over the ownership of the Reliance empire, has increased
significantly to cross the four-figure mark at the bourses.
It is now India`s largest private-sector enterprise by any measure -- revenue (20 billion dollar in 2005), profit (two billion dollar), or a share of Indian GDP (3.5 per cent).
RIL`s market value has been hovering around 35 billion dollar based on its share prices last week.