MUMBAI: Was it for real? As the dust kicked up by the Ambani family's high-profile reunion in Chorwad begins to settle, in Mumbai, where any realignment of interests will matter the most, many remain sceptical.
Was the apparent unity between the Ambani brothers that was on display in Chorwad designed to convey a united front in view of the challenges facing both groups? The group headed by Anil finds itself facing battles on multiple fronts with convertible bonds issued by its debt-laden telecom arm due for redemption early next year and three of its executives on trial for alleged involvement in the 2G scam. Elder brother Mukesh's Reliance Industries has struggled to obtain regulatory clearances from the petroleum ministry in the wake of plunging output at its flagship gas fields off India's east coast.
There are indeed grounds for scepticism, some analysts said.
There are rumours that sections of the media were alerted about the supposedly private event. The stocks of both groups moved during the two days the billionaire brothers stayed in Chorwad, indicating the commercial impact of even a perceived change in relations between the two.
"I would not read too much into all these things. There are fundamental reasons why some stocks are down. It is not as if there is something else that is affecting the stocks and the sentiment and fundamentals are good. I think fundamentals don't change by all these things that people see on TV and what you are talking about," said Piyush Garg, CIO atICICI Securities.
Kavil Ramachandran, professor of family business and wealth management at Hyderabad's Indian School of Business, cautioned against reading too much into the reunion.
"I don't read too much into this reunion. My feel is that there is no bitterness left now. The animosity, uncertainty and insecurity no longer exist. Both the brothers have decided to move on, take charge of their lives. This is more of a social meeting. It's a maturing of relationships. I don't expect them to do anything together in terms of business. It was entirely a family affair in the memory of their father. So the family wanted to send out the message that they all have a positive relationship, especially on such a sombre and emotional occasion," Ramachandran said.
MEDIA NOT WELCOME AT REUNION
Nonetheless, ET reporters spotted few signs of artifice in Chorwad. Few had advance information about the movement of family members, making it a difficult assignment for camera crews that had to shuttle between the helipad, the two gates of the Ambani complex and several local temples. The local police inspector was told about each VIP arrival just an hour in advance, with instructions to keep the information confidential.
The security was almost entirely in the hands of Reliance Group Support Services, a veritable private army specialised in industrial security, with 5,000 guards and more than 600 commando-trained officers. The officers were polite but firm, as they are trained to be, and made no concessions to even the most innocuous of queries.
SOURCE
Was the apparent unity between the Ambani brothers that was on display in Chorwad designed to convey a united front in view of the challenges facing both groups? The group headed by Anil finds itself facing battles on multiple fronts with convertible bonds issued by its debt-laden telecom arm due for redemption early next year and three of its executives on trial for alleged involvement in the 2G scam. Elder brother Mukesh's Reliance Industries has struggled to obtain regulatory clearances from the petroleum ministry in the wake of plunging output at its flagship gas fields off India's east coast.
There are indeed grounds for scepticism, some analysts said.
There are rumours that sections of the media were alerted about the supposedly private event. The stocks of both groups moved during the two days the billionaire brothers stayed in Chorwad, indicating the commercial impact of even a perceived change in relations between the two.
"I would not read too much into all these things. There are fundamental reasons why some stocks are down. It is not as if there is something else that is affecting the stocks and the sentiment and fundamentals are good. I think fundamentals don't change by all these things that people see on TV and what you are talking about," said Piyush Garg, CIO atICICI Securities.
Kavil Ramachandran, professor of family business and wealth management at Hyderabad's Indian School of Business, cautioned against reading too much into the reunion.
"I don't read too much into this reunion. My feel is that there is no bitterness left now. The animosity, uncertainty and insecurity no longer exist. Both the brothers have decided to move on, take charge of their lives. This is more of a social meeting. It's a maturing of relationships. I don't expect them to do anything together in terms of business. It was entirely a family affair in the memory of their father. So the family wanted to send out the message that they all have a positive relationship, especially on such a sombre and emotional occasion," Ramachandran said.
MEDIA NOT WELCOME AT REUNION
Nonetheless, ET reporters spotted few signs of artifice in Chorwad. Few had advance information about the movement of family members, making it a difficult assignment for camera crews that had to shuttle between the helipad, the two gates of the Ambani complex and several local temples. The local police inspector was told about each VIP arrival just an hour in advance, with instructions to keep the information confidential.
The security was almost entirely in the hands of Reliance Group Support Services, a veritable private army specialised in industrial security, with 5,000 guards and more than 600 commando-trained officers. The officers were polite but firm, as they are trained to be, and made no concessions to even the most innocuous of queries.
SOURCE
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