12 April, 2021

Anatomy Of A Split

The smokescreen has been impenetrable in the Reliance saga so far. Here, we distil the truth from a web of lies and deceit — what is each camp eyeing, what is each plotting and how far each will go. Upd

Anatomy Of A Split
The Pangs of Separation
  • Anil's desire for a 50:50 split in businesses is nearly impossible, unless he can pressure Mukesh to spin off a few divisions out of RIL and give them to him.

  • Anil is unlikely to get RIL; Mukesh will not give up control over the flagship that constitutes a major proportion of revenues, assets and cash flows; he will also not agree to any vertical or other split in RIL.

  • Mukesh will not give up Reliance Infocomm; Anil may not want it as the telecom venture's fortunes depend on financial help from RIL

  • So, any split has to be an unfair one to Anil; unless he can force Mukesh to give up RIL, a few divisions of RIL and/or Reliance Infocomm (with a legal deal to help it financially); this is very unlikely

Anil's Formula

  • Divide the wealth in flagship RIL between family members; 30% each to Mukesh, Anil, mother Kokilaben and 5% each to the two sisters

  • Ensure that the group's businesses are divided "fairly...
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