How Dhirubhai Ambani had a historic defeat against Larsen & Toubro

In 1987, a sense of apprehension broke out in L&T, when a Dubai-based
businessman named Manu Chhabria bought a 1% #stake in the company.

Afraid of Manu’s hostile takeovers, NM Desai, the former chairman of L&T,
approached business #tycoon Dhirubhai Ambani for help.

Dhirubhai saved L&T by acquiring an 18.5% stake for approx Rs 190 crores for the
next 2 years.

However, Dhirubhai’s true intentions showed up when he got elected as the
chairman, and NM Desai got kicked out from his own company.

As L&T became cash-rich, he used Line of Credit to buy Reliance #shares for L&T.

When VP Singh became the Prime Minister in 1989, he brought back government
control in L&T through LIC, and Dhirubhai had no option but to leave his

Despite Congress's return in 1991, Dhirubhai couldn't make a #comeback because
of the indirect hindrance caused by the then Finance minister Manmohan Singh.

In 2001, Reliance exited from L&T by selling all of its stakes to Birla’s Grasim
industries, and for the first time, Dhirubhai lost a business battle.

Greediness destroys and Karma kills! Agree?

The Representative