Renjini Liza Varghese

When the most bitterly fought battle in Indian corporate history was set to rest by Supreme Court and given a clear directive to settle all disputes, everyone was keen to see what agreement the Ambani brothers arrive at.  Typically, on a lazy Sunday morning, Mukesh Ambani’s Reliance Industries issued a bland statement announcing the end of the non-compete agreement signed between him and younger brother Anil.

As news of the truce started to sink in, the next question that crossed everyone’s mind was who played the pivotal role in bringing in the warring brothers to the table? Was it Kokilaben, their mother, or did the first step come from the elder brother as has been reported widely.

But a majority of Mukesh’s close friends believe that petroleum minister Murli Deora, an old family friend, was instrumental in bringing about the truce. They don’t rule out the possibility of Anil losing political support after Amar Singh expulsion from the Samajwadi Party. And some are of the opinion that Nita Ambani, Mukesh’s wife may also have played a crucial role in the new agreement.

For the record this is a step towards reconciliation, and the RIL statement said as much: “RIL and Anil Ambani-led ADAG have approved and signed an agreement canceling all existing non-compete arrangements entered into between the two groups in January 2006 pursuant to the scheme of reorganisation of the Reliance Group and entered into a new simpler, non compete agreement with respect to only gas based power generation.

The above agreements have been approved by the board of directors of RIL and the respective ADAG. The cancellation of the existing non-compete agreement as above will provide enhanced operational and financial flexibility to both groups, and greater ability to participate in high growth sectors of the Indian economy, such as oil and gas, petrochemicals, telecommunications, power, and financial services. However, RIL has agreed not to enter into gas based power generation business for the period up to March 31, 2022.”

The prospect of the two brothers working together again, however loosely, had the corporate world sitting up and taking note. A source close to the family who has watched both brothers growing up felt that how the new opportunities that have opened up with new no-compete are harnessed by either group will be a reflection of the brothers’ individual temperaments and working styles. 

“While Mukesh’s moves are well thought-out and timed, Anil is much more impromptu in his decision making. It will not come as a surprise if RIL enters businesses that Anil has a strong presence in the medium term. Telecom for instance, was Mukesh’s baby from the very beginning,” said the source.

Also Read

• Ambanis signs new non compete agreement
• RIL may enter thermal power sector
• Ambani brothers sign gas supply agreement
• Ambani brothers battle: SC verdict favours Mukesh
• Reliance Power, RNRL may merge

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