[Tucker48]

Originally Posted by CarNerd

What happens next? Will he run away? After some time they somehow escape public attention and continue to live as if nothing happened. Look at Subrato Roy. The last I heard was the Supreme Court had refused to give him bail until he deposited 20k crores to SEBI. Most of us have no idea about his present status. There is news that Mallya is being brought back. I don't know what the courts will do.

He was asked to pay around 25k crores. The principal amount is 15k crores and rest is interest. He has already paid around 20k crores. But he is unable to raise more money as he didn't find any buyers for buying a stake in Amby Valley. Funny thing is that they expect most of 20k crores to come back to them as they claim that they have paid 95% of depositors already.
There is something fishy in all this which we will never get to know. I guess politicians invested their scam money with him which is a norm for any big business involving real estate.

[V.Narayan]

Originally Posted by Sran

......just like Sahara, which was the most trusted NBFC in the country. Although, Sahara's have stopped paying pre maturely but have yet not failed in payments on maturity to their individual customers.

I realize we are off topic but this statement aroused my curiosity. Can you elaborate and substantiate please. Thanks.

[fhdowntheline]

Originally Posted by Shreyans_Jain

The contents of this article are shocking. I was of the impression that Mukesh had intervened at the last minute, possibly at the behest of his mother, to help his brother and stop him being jailed. All statements issued pointed towards this, and some ‘experts’ even indicated this as a sign of thaw and improved relationship between the brothers. Never knew there were drawn out negotiations and that he actually took his pound of flesh.

Certain commercials are perhaps meant for symbolic importance.The other side too has shareholders to answer to. Also, while not willing to take sides in the overall argument of businesses vs financial institutions vs judiciary, I think its high time we de-linked "scam" from any business that goes under. In some cases it is sheer immature reporting by media that creates unnecessary hype, and that also adds to certain political pressure. Businesses fail as much as businesses succeed. Thats just a fact of life. Banks (and bankers) too must resist temptation of the "glamour of balance sheets" and lend cautiously. Sometimes that also means standing up to political and bureaucratic pressure.

[Redline6800]

A stunning fall from grace !

I got a chance to see him at the 2019 Paris Air Show. When he visited one of the defence company stands I also happened to be in. I was quite excited to be next to an industry titan.

The other guys I have had a chance to view from up-close have been Vijay Mallya (at the height of this power) and Anand Mahindra. These guys reek wealth and success.

I was surprised by how visibly worn-out and tired Anil Ambani looked, considering he is a real fit dude and a marathon runner.

The one thing that I still remember, was how cheap his suit looked! He just seemed down and out for the count.

Hope, he can get back up again, fight on mate!

[ajmat]

Originally Posted by Shreyans_Jain

The contents of this article are shocking. I was of the impression that Mukesh had intervened at the last minute, possibly at the behest of his mother, to help his brother and stop him being jailed.

It is quite possible, Mukesh told his mother "I'll sort it out, let the details to me!" and that was it.

Originally Posted by chaotic

His very visible support and friendship with a political party, meant that as soon as they lost power, support for him was pulled and risky decisions soon turned into a quagmire, riling the group with mounting debt and little support in terms of policy and government patronage. (most of his bets were in highly regulated areas such as Power, Defence etc.)

Soon after the split, a lot of people told me Anil had the better deal. I seriously looked at investing in ADA companies however

Reliance Com - Still stuck in CDMA
Power - everything was coal or hydro-electric. Coal was very dependent on imports and going out of fashion rapidly.
Only Reliance Capital made sense - I never invested though - too much greasing around with Subroto Roy made me feel uneasy!
Am I glad

Originally Posted by car love

Over diversification. This is what comes to mind. There are very few companies that can manage a finger in many pies. For that you must have great management bandwidth and a long, stable history of top class management and processes. The examples that come to my mind is GE, Tatas etc. He got into too many Mega things, too quickly and too aggressively and paid the price.

Originally Posted by RaghavEvoX

Exactly. Too much diversification in very little time. Obviously diversification is great if your other businesses are generating great profits and you pool in your money in different sectors and reduce the risks and increase the opportunities

In business school, our business strategy professor made us focus on highly diversified companies in one class. Their success was mainly

• Mainly commodities - easy to manage cost
• Ensure large scale
• Above all - excellent and tight financial controls - each business needed to report strong numbers
• Willingness to exit without qualms if the business does not cut it!
• Highly diversified might be permissible but the span should be manageable.

Sounds like GE and Reliance in a way