watch was fantastic I know I told that already that is so cool some big names are set to attend like Mohamad bin jasim Alani the Prime Minister ofq Bill Gates the founder of Microsoft Ivanka Trump daughter of Donald Trump Mark Zuckerberg CEO of meta the groom is the son of India's richest man and the pre-wedding celebrations have already included private performances from Rihanna Justin Bieber and the Backstreet Boys you know that Mukesh Amani is the richest man in India but do you know why exactly is he so rich mes Amani who transformed his relance Industries into a diversified conglomerate reclaimed the number one spot with a net worth of $92 billion where does he get all this money from you probably know that his wealth is tied to his company Reliance Industries but how big is this company Reliance Industries is the company with the highest revenue and market capitalization of any company in India and it is the second most profitable company in India only behind SBI do you know how exactly all of this money and profit is generated see many people think that it is because of Reliance Gio the largest Telecom operator in India that is also owned by Mukesh Amani While others think that it is because of Reliance retail and its smart Bazar Outlets but all of them are wrong Reliance Telecom business is not the majority contributor to their total profits and Reliance retail is even smaller in fact Reliance GI was launched in 20 2016 and it did not generate any profit for the next 2 years and before launching it required an investment of 22 billion an investment of 150,000 CR rupees with no return for 2 years so where did Mukesh Aman get all this money from well the source is an unlimited pit of money a pit of money so deep that you could not spend all of it even if you spend your entire lifetime it is a cash cow that the ambanis established decades ago which he his children and probably the next several generations to come will continue to milk and it is not in sectors like entertainment or sports or retail it is one of the most boring businesses that you could ever work in and that ultimate source of Amani's wealth is the jam nagar Refinery it is a crude oil refinery that turns crude oil into petrol that you can use along with several other products but it is not any crude oil refinery it is the largest refinery in the world world with technology so Superior that no other country or company can match it and the oil to chemical segment of Reliance Industries generates a revenue of 68 CR rupees per bar so when was this refiner established and who built it how did an Indian manage to build the biggest crude oil refinery in the world and why exactly did the ambanis get into the refinery business in the first place in this video you are going to find the answer to these questions and understand what is the real source of Amani's wealth we will deep dive into the psychology of Mukesh Amani and find out how he managed to become the richest man in the country so let's begin by understanding what exactly is a crude oil refinery see any of the petroleum products that we use like petrol or diesel are not extracted from Earth ready to be used what we get from extraction is crude oil which needs to be refined a crude oil refinery like the one in Jam nagar takes this crude oil refines it and generates It's the final usable products so crude oil is used to extract products like petrol diesel jet fuel LPG kerosene petrochemicals and even petroleum jellies like Vaseline and the jam nagar refiner is the biggest oil refinery in the world not only does it hold the record for being the biggest refiner in the world for a quarter of a century but it is also the most profitable refinery in the world and thanks to its sheer size and scale it is the biggest source of Mukesh Amani's wealth today in 2023 Reliance Industries had a total profit after tax of over 73,000 CR rupees if you look at the Abit contribution oil and gas exploration had a contribution of 99.1% this segment basically means finding and extracting the crude oil which can later be refined Reliance retail contributed 12% this segment includes Reliance fresh smart Bazar AIO netmets and others and Digital Services contributed to 33.6% this includes Geo Telecom geoc Cinema Geo fiber and basically everything Gio except geart the largest contribution was actually made by o2c or the oil to chemicals refining business which contributed 41.5% you also have to understand here that Digital Services and Reliance retail were recent bets made by mesh Amani they have started paying off in the form of profits only a few years ago the refinery business bus was what gave him the capital money to play all these bets a great example of this was the $22 billion needed to establish geot Telecom in 2016 if Mukesh Amani did not have the money from the refinery business coming in back then how do you think would he have been able to finance the expansion to all these sectors but why did the ambanis get into this oil refining business in the first place you see unlike goam adani Mukesh Amani and Anil Amani are not first generation billionaire the foundation for Reliance was actually laid by the OG duai Amani duai initially started as a smalltime Trader of textile yars in the late 1960s and in 1975 he launched viml a clothing brand that quickly became popular for its high quality fabric but deai was not satisfied he found that a chunk of profit was actually going to their suppliers Who provided them the yarn for clothes and he did not want to share so he started Manufacturing ing polyester Yan although he had no formal business education what he was doing was backward integration where you manufacture the raw materials yourself to improve your profit margins by the late 1980s he had already become the richest man in India but then he found out that manufacturing polyester yarn needed polymers and petrochemicals so in 1996 Reliance commissioned its integrated petrochemical complex in hazera Gujarat which turned them into one of the biggest petrochemical players in India at that time but he was still not satisfied petrochemicals are obtained by refining crude oil and he wanted to own that part of the process as well so in 1999 dehuai Amani envisioned the creation of the largest oil refiner in the world the jam nagar Refinery and the execution was conducted by the Elder son of duai Mukesh Amani now white was Mukesh and not Anil is a story of its own which I will uncover in the next video but the fact remains that it was mukes Shani who undertook the execution of this Mega project and this was where the incredible foresight and business acument of Amani's came into play you see the Amani philosophy of doing business has really never changed when dehuai Amani did textiles he ensured that he dominated BML was the largest texile brand at its peak then the same happened with petrochemicals the hazera plant in Gujarat was one of the most sophisticated ones of its time and Mukesh Amani has continued that pattern he literally eliminated all competition from the market with Gio in the Telecom sector did the same thing in the retail sector with the forced acquisition of big Bazar and recently Did It Again by the virtually forced merger with Disney hotstar in India he makes a company so big that it becomes impossible for anyone else to even survive let alone compete with him and he did the same thing with the jam nagar Refinery as well it was envisioned as the absolute leader in the industry right from the beginning it was not just an ordinary refining plant it was a fully integrated manufacturing facility with its own residential housing for 2500 employees its own electricity power generation complex a dedicated shipping Port its own water treatment plant and even its own Airport terminal it is built on an area of over 7500 caros or 30 square kilm the much publicized pre-wedding celebration of anant Amani in March 2024 was hosted in the jam nagar complex itself that is how enormous and sufficient it is the total investment to build this enormous refinary was 25,000 or $6 billion and it was built in just 3 years at just about 50% of the typical cost of other similar refineries more than 75,000 workers worked round the clock for months to complete it in record time but even after being built so quickly the jam Naga Refinery is a technological iCal Marvel the complexity index or CI of a refining plant indicates its ability to process different qualities of crude oil into high value products the higher the index the more advanced a refiner is and the jam Naga Refinery has the highest CI in the world at 21.1 the next best is motiva refinery in the USA at 14.3 and almost all other major refineries have a CI of around 11 so while other refineries can only process crude oil above a certain level of Purity the jam nagar Refinery can take on garbage crude oil and process it easily it is able to process more than 170 different types of crude oil without any difficulties while typical refineries have a waste generation of 5% the jam Naga refiner waste generation is just about 0.2% it is consistently ranked number one for low operation and Manpower cost in the world and by sailing such a tight ship the jam Naga Refinery profits are high than any other refiner in the world so because of its gigantic scale low cost Hightech abilities to process any type of oil and high profit margins it is the ultimate Cash Call for Mukesh Amani in 2023 the oil refining business generated a revenue of 595,000 cres that is 1,600 cres per day or 68 CR rupees every single R since you started watching this video Mukesh Amani generated over 10 CR rupees from the this business let that sink in for a moment but as I said the true magnificence of ambani's business Acumen lies in his foresight right now he is still planning 10 years into the future with the rise of EVs and green energy he knows that petrol and Diesel are going to become obsolete in the coming years so he is now investing in those sectors Reliance has already started converting the jam nagar Refinery from a leading producer of fuels to a leading producer of chemicals the goal is to convert More than 70% % of crude oil refined in jam nagar into petrochemicals and when this oil to chemical transition is complete the jam nagar Refinery will produce only jet fuel and petrochemicals it has already announced plans to invest 75,000 crors or $9.4 billion over 5 years to boost its petrochemical output in 2021 it also announced another $10 billion for a green energy project to build four gigafactories in Jam nagar which will produce solar cells batteries and and green hydrogen so even today this man is thinking 10 20 30 years into the future and what will be relevant then and this is exactly why Mukesh Amani was rich 25 years ago he is Rich today and he will likely be rich 25 years from now the strategy being adopted today is the same that was adopted 25 years ago complete and utter domination of an industry that results in a monopolization so competition cannot even exist the only thing that led to the downfall of the Reliance Empire about 25 years ago was the feud between the two Amani Brothers after their father passed away and now potentially another Family Feud could be in the making with three Amani years in line for succession but Mukesh Amani is doing everything in his capability to avoid that Feud with a mega succession plan that could birth the next potential billionaires of India I will bring out a video soon detailing the planned succession of the Mukesh shambani Empire so make sure you don't miss it by subscribing here follow me on LinkedIn Instagram the link is in the description below until I see you in the next video goodbye