A

STARATEGIC COMPARISON

BETWEEN

LEADERSHIP STYLES OF ANIL AGARWAL(chairman of Vedanta Group)

and

MUKESH AMBANI(chairman of Reliance Industries)

Prepared by:

Hardeep Singh Bhatia

MBA Class of 2011

IBS Mumbai

Enrolment number 09BS0000832

Prepared under the guidance of

Prof. S.V. Bidwai

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 About Mukesh Ambani

Born on: April19,1957

Achievements: Chairman and Managing Director of Reliance Industries Limited, India's
largest private sector company; Chosen as ET Business Leader of the Year 2006; Ranked
42nd among the World's Most Respected Business Leaders and second among the four
Indian CEOs featured in a survey conducted by PricewaterhouseCoopers and published in
Financial Times,London,November2004.

Mukesh Ambani is the face of new emerging India. He is the Chairman and Managing
Director of Reliance Industries Limited, India's largest private sector company.

Mukesh Ambani was born on April 19, 1957 in Mumbai. His father Dhirubhai Ambani was
then a small businessman who later on rose to become one of the legends of Indian
industry. Mukesh Ambani did his Bachelors in Chemical Engineering from University of
Bombay and Masters in Business Administration from Stanford University, USA.

About Anil agarwal

Anil Agarwal (born 1954, Patna, Bihar, India) is an Indian metals, mining magnate and the
founder and chairman of the UK-based Vedanta Resources Corporation. His personal wealth
is US$6.4 billion as of now. Anil Agarwal was born in Patna, Bihar in 1954. His father was a
small-businessman. His father was into making aluminium conductors. Mr. Agarwal, was a
matriculate from Miller High School, Patna. Lalu Prasad Yadav was his classmate and he also
claims to be his great fan. Anil began his business as a scrap metal dealer in Mumbai.

Anil Agarwal founded Sterlite Industries, a business operating in the industrial sector in
1976 and then in 1986 established Vedanta Resources bringing together a variety of
businesses owned by the Agarwal family. Mr. Agarwal served as Chief Executive Officer of
Vedanta Resources Plc. from November 27, 2003 to March 2005. He served as Chief
Executive Officer and Managing Director of Sterlite Industries India Ltd.(subsidiary of
Vedanta Resources Plc) from 1980 to October 19, 2004. Mr. Agarwal has over 31 years
experience as an industrialist. He has been an Executive Chairman of Vedanta Resources Plc
since March 23, 2005 and its Executive Director since May 16, 2003. Mr. Agarwal has been
Chairman of Sterlite Industries India Ltd. since October 20, 2004

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Reason for Conflict between the two business leaders :

Leadership styles comparison

Based on personal observations of several thousand managers, in both business and

simulated business settings, four elements are identified that are frequently associated with
leadership effectiveness. These elements are: (1) consistently and routinely applying a
small number of key concepts, (2) developing skill at thinking and acting strategically, (3)
taking advantage of knowing one's personal style and its impact on others, (4)
understanding the non-linear and iterative nature of strategic management processes.

It was striking to find that while each of these businesspersons was in a different field, they
showed certain common aspects to leadership. The most striking aspect has been the
'transcendental' nature of their approach to leading the business.

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Anil Agarwal Vs Mukesh Ambani

The proposed takeover of Cairn Energy's India business could see NRI billionaire, Mr Anil
Agarwal, emerging as the richest promoter of a corporate house ahead of Mr Mukesh
Ambani, who has ruled the list for long.
After the acquisition of Cairn India and a proposed IPO of group firm Sterlite Energy, Anil
Agarwal, as head of the promoter family, would command an estimated networth of close to
Rs 1,67,000 crore, ahead of Mr Mukesh Ambani at Rs 1,45,275 crore, a comparison of
promoter family holding valuations for leading groups reveals.
However, Mr Mukesh-led RIL is a wealthier group than Mr Agarwal's Vedanta, although both
are behind the Tatas, whose market capitalisation in terms of listed entities is over Rs
3,70,000 crore.
However, in terms of promoters' wealth, Tata group chief, Mr Ratan Tata, hardly compares
to either Mr Mukesh or Mr Agarwal.
In their own respective fields of business, Mr Agarwal is a global leader in the metals and
mining, while Mr Mukesh is among the top-ranked international players in the fields of
petrochemicals and largest private sector oil group in India.

Mr Agarwal is now entering oil business through the Cairn India acquisition and his capacity
to play to the size could now make competition intense in oil sector.

At the same time, the acquisition would give the Mr Agarwal family double the size of Mr
Anil Ambani group (whose promoter wealth currently stands at less than Rs 80,000 crore).

The $9.6 billion takeover of Cairn India has already pushed Vedanta group head Mr Anil
Agarwal to the second position after Mr Mukesh Ambani in terms of family net worth,
measured in terms of value of shares held as promoters in five listed group companies.

Add to this, the value of shares he holds in aluminium major Balco and IPO-bound group
firm Sterlite Energy, the promoter family wealth of Mr Anil Agarwal group could rise to
nearly Rs 1,66,938 crore.
In comparison, the promoter family wealth of Mr Mukesh Ambani group currently stands at
Rs 1,45,276 crore, based on the value of promoter holdings in two listed group firms
Reliance Industries and Reliance Industrial Infrastructure.

Without Sterlite Energy, which has proposed an initial public offer of Rs 5,100 crore, and
Balco, where Vedanta group has 51 per cent stake, the total promoter family networth of
the Vedanta group currently stands at Rs 1,38,465 crore.

This includes the value of promoter shares in Sterlite, Hindustan Zinc, Sesa Goa (all listed in
India) and that in UK-listed Vedanta Resources, as also the worth of proposed 60 per cent
stake in Cairn India proposed to be purchased from Scotland-based Cairn Energy.

The total networth would rise by over Rs 28,000 crore if Balco is taken at par with its peer
group company Nalco, which has a market cap of Rs 25,830 crore, and the group offloads
25 per cent stake in Sterlite Energy to raise Rs 5,100 crore.

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Agarwal has tried his very best not to displease Ambani. People familiar with the proposed
transaction say Agarwal moved in on Cairn only after ensuring Mukesh was not interested in
it. Again, in his first comments soon after announcing the Cairn deal, Agarwal acknowledged
Reliance’s alpha-male status in the sector. “They (Reliance) will continue to be the largest
player. But, at the same time, there is enough water in the sea for other players to also do
business,” he said. Clearly, Mukesh is one rival that even Agarwal wouldn’t want.

Reliance has maintained a studied silence so far. An email sent to the company asking for
its views on Vedanta’s entry into oil and gas was unanswered. But the oil ministry went into
overdrive — a flurry of voices began emanating, questioning various aspects of the deal.
Agarwal has no experience in oil and gas. Should he be allowed to take control of Cairn
India? Doesn’t ONGC — the licencee of Cairn India’s Rajasthan’s exploration block and 30%
equity holder — have the first right of refusal? Shouldn’t ONGC make a counter bid?

Lastly, oil ministry officials raised “security concerns’ soon after Cairn India’s sale to
Vedanta was announced. But, two days later, officials in the PMO and the home ministry
denied any such concerns.