Thread by @Finology_Quest

L&T is owned by Reliance Industries? 🤯

Let's Find out how. ⤵ (1/10)

The story dates back to the early 80s; L&T was the largest engineering firm in India.

A wealthy businessman named Manu Chhabria from Dubai had his eyes set on L&T and started buying stakes in the company.

(2)

By 1998 Manu had a 1.5% stake in L&T which he soon intended to increase by planning a takeover against the management’s will.

This had to stop, L&T approached the Ambanis, who brought a 12.5% stake in L&T, which later increased to 18%

(3)

Dhirubhai Ambani not only brought the stakes but also introduced his sons Mukesh & Anil as board members.

Do you sense the betrayal? Ambanis were trying to take over L&T!

(4)

Congress, the ruling party back then lost power & the new government forced the Ambanis to resign from the board.

(5)

They remained passive investors until 2001. Later, making a dramatic exit, they sold their entire stake to Kumar Mangalam Birla.

(6)

Now Birlas were eyeing the cement division of L&T, which gave tough competition to Birla’s flagship company Grasim.

The company needed a true hero and got one in the form of AM Naik, CEO & MD of L&T.

(7)

AM Naik asked all the employees to become owners of the company and formed L & T's employees’ trust.

(8)

#nifty50 #stocks #finance

In 2003, Birla sold his stake to the employees’ trust of the company. In return, Birla received the L&T cement division, and this way, Ultratech Cement was born.

(9)

Kahaani abhi baaki hai mere dost! Find out what happened next only on

(10/10)

blog.finology.in/entrepreneursh…