Mukesh, Tata

Mumbai, Aug. 27: Mukesh Ambani today threw his weight behind the Nano project in an uncharacteristic show of support for Ratan Tata, widely regarded as a long-standing corporate rival.

“The Nano project is a unique and innovative initiative which will establish India’s position as a small car hub. Indian industry must be encouraged to make such large investments in order to build the country’s competitiveness as well as support job creation,” Mukesh, the country’s biggest tycoon, said in a statement.

“A fear psychosis is being created to slow down certain projects of national importance. This will be counter-productive for the country’s economic growth, its global image as well as our ability to attract investments from across the world,” the statement added.

Mukesh’s ringing endorsement for the beleaguered project piqued interest — and sparked speculation that this could mark the end of the intense rivalry between India’s best known business houses.

The rivalry dates back to the time when Dhirubhai Ambani was establishing his empire in the early eighties and had to contend with the opposition and disdain from the established business families.

Mukesh added that the Indian industry and the political leadership in the country needed to work together in order to “deliver on the aspirations of the millions of Indians in urban and rural areas”.

There was no explanation about what Mukesh meant when he spoke about a “fear psychosis” and who was engendering it. It wasn’t clear whether this was directed at business rivals or politicians like Mamata Banerjee.

Last week, Samajwadi Party general secretary Amar Singh — who is close to Mukesh’s brother and bitter foe Anil — occupied the dais at Singur when Mamata launched her agitation against Tata’s dream project.

One question hung in the air: if the Anil Ambani camp was indirectly supporting Mamata, could Mukesh have decided to back Tata? There were no immediate answers.

“These are his (Mukesh’s) thoughts on the project and the statement was released from his office. The whole world is watching the Nano project which will create employment and change the economic framework of Bengal. Mukesh Ambani wants to say that it’s time that we all worked together or India’s image will be tarnished,” said a spokesperson for Reliance Industries Ltd (RIL).

Mukesh has never been known to come out in support of a particular project or business rival even though he has often espoused the cause of industry in general and the oil and gas sector in particular.

A spokesperson for Tata Motors said: “We welcome his statement. He has appreciated the impact that the development and manufacture of the Nano will have on the local economy.”

Changing rivalries

After the Reliance empire split in 2006, the telecom and the power businesses — areas in which the Tatas and the Ambanis were fierce competitors — went to brother Anil.

Mukesh and Anil have been locked in bitter battles since the split over the sharing of gas from the Krishna-Godavari gas field and the latter’s recent plan to forge an alliance with South African telephony major MTN through a stake sale in Reliance Communications.

But Anil and the Tatas have also been locked in court battles: they fought when the Tata-owned VSNL (now Tata Communications) refused to give Anil’s Flag Telecom access to landfall points on the west coast.

Besides, Anil recently launched Big TV — a direct to home (DTH) platform — which will slug it out with Tata Sky.

Mukesh also competes with Ratan Tata in the area of organised retailing where the Tata group’s Westside, Star Bazar and Croma stores are pitted against Reliance Retail.

Reliance Retail has run into trouble in Bengal. Last year, Reliance Retail dropped plans to start retail operations in the state because of opposition from a constituent of the Left Front.