Dhirubhai taught India to invest, not just save:Brought the stock market to middle-class families and made them partners in big dreams

Gujarat has always been known for business, thrift and taking calculated risks. But a man from Chorwad, Gujarat, showed Gujarat and the entire country how much success could be achieved through these qualities. His name was Dhirubhai Ambani. At that time, India’s stock market was largely restricted to a few wealthy businessmen and big business families. Ordinary middle-class families deposited their money in gold, land or banks. They rarely thought about buying a stake in a large company. Dhirubhai Ambani changed this mindset. He had neither an inherited business empire nor a large business family behind him. What he had was a way of thinking that set him apart from others. He dreamt big and wanted ordinary people to become partners in those dreams as well. Today, there is widespread discussion about start-ups and large companies in India, but Dhirubhai had begun his journey as a new entrepreneur much earlier. The journey from Chorwad to Aden Dhirubhai Ambani was born in 1932 into an ordinary family in Chorwad, a coastal area of Saurashtra. In his teenage years, he moved to the Yemeni city of Aden in search of work. There, he began working as a clerk at A. Besse Company. Later, he took charge of a petrol station associated with the company’s petroleum business. Aden was no less than a business school for him. There, he closely observed ships, traders and the commerce taking place between different countries. He learnt that business depends not only on what you have, but also on how well you recognise opportunities. After returning to Mumbai, he started a small business. He first traded in spices, then entered the yarn trade and later ventured into manufacturing. In 1966, he started a textile mill in Naroda, Gujarat. This gave recognition to the Vimal brand, which soon became a household name. One question that changed the way Indians thought about investing Dhirubhai’s most important idea was contained in a simple but revolutionary question. If millions of Indian families worked hard to save money for their children’s future, why should they remain merely customers of products made by large companies? Why could they not also become owners of those companies? The answer came in 1977, when Reliance Textile Industries was listed on the stock market for the first time. Demand for the company’s shares was seven times higher than the number available. After that, even a teacher, small trader or salaried employee could buy a stake in a rapidly growing industrial company. Through the company’s annual reports, dividends and bonus shares, they could keep track of its progress. Dhirubhai did not start the stock market in India. The country’s stock market had existed long before him. But he played a major role in connecting ordinary people with the stock market on a large scale. He helped take investment in shares from being the privilege of a few wealthy people and make it part of the dreams of ordinary citizens. Reliance’s growth enabled many of its early investors to build substantial wealth. More importantly, it created a belief among people that those who invest in a company by placing their trust in it can also benefit from its success. Built a business empire through his hard work At the time, the Indian business world was dominated by big names such as Tata, Birla and Bombay Dyeing. In this environment, Dhirubhai emerged as an entrepreneur who built a business empire through his hard work. For Gujarat, this was not merely a business achievement but also a matter of pride. The state’s cities and towns have a strong tradition of saving and investment. In this context, Reliance found widespread acceptance among the people. Dhirubhai had emerged from this very soil. His success strengthened the belief among the people of Gujarat that business, hard work, dedication and the courage to take risks could change anyone’s destiny. This entrepreneurial spirit came to be seen as being closely linked to Gujarati identity. Dhirubhai Ambani began to be called ‘the Nath of industrial Gujarat’-the leading figure, or patriarch, of industrial Gujarat. An opportunity that still exists today The biggest gift Dhirubhai gave Gujarat in 1977 was neither a factory nor a brand. It was an opportunity-the opportunity to become part of India’s economic progress rather than watch it from the outside.
Those who embraced this opportunity became partners in some of the country’s biggest business success stories. This opportunity reached the next two generations and still exists today. Gujarat still faces almost the same question today as it did nearly five decades ago: when the next chapter of development is written, will you merely watch it, or will you become a partner in it?