Majin Commercial Corporation
Dhirubhai Ambani
Majin Commercial Corporation
Dhirubhai Ambani eventually returned to India and started Majin in partnership with Champaklal Damani, his second cousin, who used to be with him in Aden, Yemen. Majin was to import polyester yarn and export spices. The first office of the Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid Bunder. It was 350 sq ft (33 m2). room with a telephone, one table and three chairs. Initially, they had two assistants to help them with their business. In 1965, Champaklal Damani and Dhirubhai Ambani ended their partnership and Dhirubhai started on his own. It is believed that both had different temperaments and a different take on how to conduct business. While Mr. Damani was a cautious trader and did not believe in building yarn inventories, Dhirubhai was a known risk taker and he believed in building inventories, anticipating a price rise, and making profits.In 1968, he moved to an upmarket apartment at Altamount Road in South Mumbai. Ambanis net worth was estimated at about Rs.10 lakh by late 1970s.
Asia Times quotes His people skills were legendary. A former secretary reveals He was very helpful. He followed an open door policy. Employees could walk into his cabin and discuss their problems with him. The chairman had a special way of dealing with different groups of people, be they employees, shareholders, journalists or government officials. Ambanis competitors allege that he bought off officials and had legislation re written to suit him. They recall his earlier days and how he picked up the art of profiteering from the then Byzantine system of controls of Indian officialdom. He exported spices, often at a loss, and used replenishment licenses to import rayon. Later, when rayon started to be manufactured in India, he exported rayon, again at a loss, and imported nylon. Ambani was always a step ahead of the competitors. With the imported items being heavily in demand, his profit margins were rarely under 300 percent.