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The Ambani family’s next generation is joining the Reliance Industries Limited (RIL) board. Mukesh Ambani, the company’s chairman and managing director, announced that his three children, Isha, Akash, and Anant, would join as non-executive directors at the annual general meeting, which is always a highly anticipated event.
Market watchers have interpreted this as a succession planning exercise. In many ways, the groundwork has been done for a few years now, with the three kids being assigned defined roles to play: Anant, the youngest, is in charge of green energy, while Akash and Isha are in charge of Reliance Ji Infocomm and the retail sector, respectively. Taking that into consideration, their appointment to the RIL board seems to be the continuation of a process.
Ambani siblings hold considerable experience
Deven Choksey, Promoter and MD of the wealth management company KRChoksey Group, claims that the Ambani siblings have spent a considerable amount of time in their individual businesses and have a thorough grasp of them.
The first phase of the time was spent in a phase of professional mentoring. He claims that was undoubtedly a component of preparing them for more significant leadership positions. He believes that by insisting that this was a planned strategy, he was able to win over other RIL board members as well as top management. RIL is a very sophisticated organisation with several different businesses today. Because of its size, a robust succession plan is required, and the business has been very proactive in implementing one.
Given how many businesses in India are operated by families, succession planning is a challenging process. The board of any firm has a primary obligation as the guardian of its stakeholders, according to Kavil Ramachandran, Senior Advisor at the Thomas Schmidheiny Centre for Family Enterprise in the Indian School of Business (ISB), Hyderabad, and a long-time family business observer.
He says it’s critical to hire people with a track record of success. Ramachandran claims that it has been noticed that the chosen ones travel through multiple levels in the firm. Before being given assigned responsibilities, individuals are trained accordingly.
Before being considered for a board position, they are continually assessed, developed, and mentored. One further illustration of that is the approach Reliance has taken. He emphasizes that the grooming approach has been effective, with the overall effects, in the long run. It is believed to being highly favorable for the organisation and its stakeholders.
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