The Hindu Business Line : Aye bhai, zara dekh ke chalo!

The Ambani brothers have fought and have made up, in the process splitting Reliance's mega industrial empire. Now is the time to look at soft issues. Now is the time to build the brand.

SATURDAY, June 18, 2005, started as just another day in Mumbai — hot and humid. And there was nothing strange about it. Sofia Gardens in Cardiff experienced similar weather. It was hot and humid there too, but that was certainly strange. After all, Cardiff is in the UK.

But stranger still was what happened that same Saturday in a one-day cricket match between Australia (the top team) and Bangladesh (the team at the bottom of the order) in a hot and humid cricket stadium in Cardiff, which had a fair sprinkling of Bangladeshis.

The minnows (as they are often derisively referred to) won. That made news in England. The English were gloating as this was beyond their wildest imagination. It made news in Australia. The Aussies were seething, as this was beyond their worst nightmare. It made news in Bangladesh. The Bangladeshis were celebrating even as they kept saying that they were not as bad as the rest of the world said they were.

It made news in Mumbai too. Though news of greater significance was being made in that very place, on that very day. The Ambani brothers who had not seen eye-to-eye for some time and who have been scrapping from July 27, 2004 (to be precise) had finally arrived at a settlement. Actually Kokilaben, their mother, ensured that they did. Boy, did that make news! The media went to town on the settlement and continued to keep the Ambanis in the news, as they have been doing for close to a year now. (I have a sneaking suspicion that they will be hard-pushed to fill their pages in the next few months unless we have another stock market scam!).

The saga of the brothers, and possibly Reliance as well, has demonstrated several things. And I strongly believe there is a learning for all of us here. The saga of the Australian defeat is more interesting to me on a personal level, because I write the column The Third Umpire, but I shall exercise self-control and stay with the adventures of the brothers and the learning therein.

`Only Vimal' to `Only Mukesh'

In the mid-'80s, Dhirubhai was actually involved in advertising. (It was only later that his aspirations and interests grew!) He is supposed to have approved the tag line "Only Vimal," attributable to the late Frank Simoes. After Dhirubhai's demise, if rumours are to be believed, there was "Only Mukesh."

There was no will, and consequently only ill-will between the two. The brothers fought their battles through a media that was more than anxious to oblige. Mukesh was the leader, the understated elder brother. Anil was the aggrieved, the aggressor. He spoke about corporate governance. He spoke about shareholders' rights. He spoke to whoever cared to listen. The media listened. And wrote. Anil has used a strategy that could have so successfully gone wrong.

As Maureen Dowd said, "Wooing the press is an exercise roughly akin to picnicking with a tiger. You might enjoy the meal but the tiger always eats last." Anil wooed the media and how! If reports are to be believed he even sent food to a waiting (and hungry) pack of journalists. And yet it is perhaps important to add a word of caution here. Anil owes a lot to the media. And while the media may or may not want its pound of flesh, it will certainly want continued access to him.

The media cannot be switched on and off at will. And despite all his newfound responsibilities, Anil will have to find time for those who were his allies during his darkest days.

Anything can be managed

Reliance is an amazing company in several ways. It has been through crises that would have sent other companies packing. In 1987 (if my memory serves me right), Gurumurthy or SG, as he is fondly known, was going hammer and tongs at Reliance. Every day The Indian Express caused one expose after another on the beleaguered company.

It was either absolutely brilliant investigative journalism or totally biased reporting, depending on whose side you were on. To me working in Mudra, it was at once frightening and illuminating. Frightening because the parent company (notwithstanding the agency's protestations about its independence) was in trouble. And illuminating because of the confidence which Reliance demonstrated. It published ads in major newspapers — including The Indian Express — clarifying its position.

Reliance managed that crisis and several others that followed over the years. Despite the fervent hopes of its critics, it survived and thrived. In fact, the attitude of Reliance has always been "We can handle it." In a country that is stoical and believes in Vedanta and the statement "this too shall pass," Reliance has been active in handling major problems successfully. Euphemistically, it can be called "Managing the Environment," but it is quite simply "Crisis Management."

And what crisis can be bigger than two brothers fighting over control of India's largest private sector company? Now, that this crisis too has been managed, the onus is on the brothers to move forward. And here is something which the brothers, who are in a sense starting out on a clean slate, need to consider. They should focus less on managing the environment and more on managing their enterprises.

India is changing. Look at what has happened to the Nawab of Pataudi. We might see the emergence of a Ralph Nader like "protector of the small investor" who may not view some of the questionable activities of companies like Reliance with the same level of tolerance in future. And Anil who has used the words "corporate governance" and "transparency" quite freely in the last year must ensure that his new ventures stand the strictest scrutiny.

Brand or business

The late Dhirubhai Ambani believed that growth was a way of life. Reliance grew, confounding its critics. The bubble never burst. The brand was secondary. It was a result of growth, profits and capital appreciation — all attractive to the investor, but not meaning too much to other target groups.

Reliance was not admired by its peers (Not that too many people genuinely appreciate someone else's success). They were sceptical, gloating when the brothers fought. And the brothers provided grist for the mill.

Now perhaps is the time to build the brand. Time to look beyond the past, into the future. Time to look at soft issues. Time to look past the investor. Time to look inwards. So far, the brand has been successful. It is huge, globally competitive and has taken over companies. Now is the time to figure out what the brand stands for, beyond these achievements. It must soften and broad-base its appeal.

Its interest in "corporate social responsibility," manifested by activities like "Harmony," has to be seen as integral to its philosophy, rather than the interests of family members. Spending their time faithfully, the new entities need to work on their brands and Anil has to work on his own brand image.

Different brothers, different positions

The last few years have created different perceptions of the two brothers. Anil was on Page 3, Mukesh was on Page 1. Anil was running the Mumbai marathon, Mukesh was running marathon meetings. Anil was speaking to the media. Mukesh was speaking to the CII. Anil was sitting in Parliament while Mukesh was trying to influence it and get things done. Anil was the MTV youth icon whilst Mukesh was in Forbes.

These may be perceptions but perceptions can be true. Branding is all about being relevant and different. Mukesh has been relevant while Anil has been different. Anil has to take a long look about current perceptions about himself. Brands continually reposition themselves, usually for the better. I feel that Anil needs a position that is more corporate, more substantive, more work-driven and more focused on his achievements with new ventures. The aggressor has to consolidate and demonstrate his capabilities to a world that is waiting and watching.

And of the future

I remember Reliance being guided by the statement that "Success is a process, not an event." The event of June 18 is an enormous success for everyone including the astrologers who allegedly pushed the deadline of the settlement! And yet the battle of ownership has become a battle to demonstrate credibility as managers and leaders. These are a few valuable lessons for lesser mortals like us:

Whether you leave behind a will of Rs 6 or Rs 60,000 crore, leave behind a will!

Managing the environment can be heady, but few can do it the way the Ambanis have done.

Media matters. And we have seen evidence of that.

Business growth is very creditable but what about the brand? Who is looking after it?

Companies must try to think beyond investors. There are other audiences as well.

Leaders need to continually review their position.

And yet I must clarify my position. I have always been a great admirer of Reliance and its growth, its down-to-earth ability to take on the world, its understanding of India and its (lack of) systems. I am bullish about the future of the ventures that will be run by the brothers. After all they have Dhirubhai's blood. My prediction is that both brothers will lead their companies through different growth paths.

And what about Australia which has had an eminently forgettable week in England? It will retain the Ashes, whatever the British media has to say!

(The writer is CEO of brand-comm.)