Mukesh Ambani, India's biggest billionaire, did not build his business empire with little effort. We can understand the success of his company only when we see how much of his intelligence and ability is involved in every business deal. Along with that, Mukesh is an expert in making business strategies.
We can undoubtedly say that it was the growth in the petroleum sector that turned Reliance into what they are today. Reliance's petroleum division has a market value of Rs 19,47,000 crore. The Red Sea is the route used by giant companies including Reliance to move goods. As attacks by Yemen's Houthi rebels have become frequent on the route, cargo ships have suffered serious damage. Due to this, the transportation of goods through the Red Sea is facing a big crisis. But Reliance was not ready to bear this loss. Mukesh Ambani used a 526-year-old strategy to overcome this crisis.
Strategy used by Mukesh Ambani
The Red Sea route is a route that many companies choose to transport oil by ship. It is the shortest route between Asia and Europe. Fuel companies use the Red Sea's Suez Canal route to reach Europe. There are many chances of accidents on this route, which is threatened by Houthi attacks. But seeing the possibility of danger, Reliance has opted the route through the Cape of Good Hope around Africa.
Why Cape of Good Hope?
Reliance Industries not only supplies oil to India but to most European countries. Reliance was aware of the possibility of danger in the Red Sea and therefore chose Cape of Good Hope. This helped the company to earn crores of profit.
Vasco da Gama's route
Portuguese explorer Vasco da Gama reached India 526 years ago (1498) through this route. The Cape of Good Hope is a rocky outcrop on the Atlantic coast of South Africa's Cape Peninsula. According to Reuters reports, Reliance tanker owners have the option of going to the Red Sea or the African route to pick up fuel. Earlier, when there was no Houthi attack, oil tankers from Reliance used to pass through the Red Sea.