Reliance's family feud split the company — one brother won, the other lost billions

When Dhirubhai Ambani, the founder of Reliance Industries, died in 2002 without a clear succession plan, both of his sons took the reins jointly. Mukesh and Anil Ambani ran India’s largest private-sector company together for two years, but the arrangement was fragile. In November 2004, Mukesh publicly admitted to differences with his younger brother over “ownership issues,” setting off a bitter feud that played out in the Indian press for months.

The fallout was resolved only when their mother, Kokilaben, brokered a settlement in 2005. The empire was split in October 2005: Mukesh kept Reliance Industries and its petrochemicals and refining businesses, while Anil took control of the telecom, power, entertainment and financial services companies, forming the Anil Dhirubhai Ambani Group (ADAG). The split was meant to give each brother a clear domain, but the division of assets was lopsided from the start: Mukesh received the cash-generating core, while Anil got capital-intensive businesses that required continuous investment.

The outcome of the split was stark. Mukesh’s Reliance Industries grew into India’s most valuable company, with a market capitalisation exceeding $200 billion. Anil’s ADAG, by contrast, collapsed under the weight of debt. Reliance Communications filed for bankruptcy in 2019 with ₹500 billion ($6.5 billion) in debt. Anil was held in contempt of court by the Supreme Court for failing to pay Ericsson and was bailed out by his brother at the last minute. By 2024, Anil had been banned from the securities market by SEBI, and his personal fortune had evaporated from a peak of $42 billion in 2008.