A SEVEN-MONTH family feud that has rocked Reliance Industries, the $23 billion oil-refining, chemicals and telecoms group and India’s biggest private company, has been settled, writes Louise Armitstead.

The Ambani brothers, who have disputed the ownership and management of Reliance after their father and founder, Dhirubhai Ambani, died in 2002 without leaving a will, have reached an agreement to split the company.

Chairman Mukesh Ambani, 48, will retain control of the group’s flagship oil, gas and chemicals divisions, while the younger brother, Anil Ambani, 46, will run the power, cellular-phone and financial-services businesses.

The final agreement, news of which was first reported in The Sunday Times in January, was announced by Kokilaben, Dhirubhai Ambani’s widow, in an e-mailed statement yesterday.

Investor confidence in Reliance, which generates 3.5% of India’s gross domestic product, has been waning as the feud has worn on. There was particular concern that the quarrel might have forced a split between the oil and chemicals businesses, cutting a tie that cushions Reliance earnings.

Reliance will transfer its holdings in the power-generation, financial-services and cellular-phone businesses to a new, separately listed company run by Anil Ambani.

Existing investors will get shares of the new company at the same ratio as their current holding in Reliance, say local newspaper reports.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive