The Daunting Task of Passing the Baton in India's Business Dynasties
India's corporate landscape is dotted with legendary family-run empires, yet behind the success stories lies a persistent and often turbulent challenge: succession planning. From media-fueled accusations and entrenched gender biases to protracted courtroom dramas, Indian business families have navigated a minefield of disputes when it comes to transferring leadership. A recent survey by global consulting firm PwC underscores this complexity, revealing that while Indian family businesses are outpacing their global peers in optimism, the internal mechanics of succession remain fraught with emotional and structural hurdles.
Resistance from the Senior Generation: A Key Obstacle
According to PwC's 12th Family Business Survey in India, a striking 52% of respondents identified resistance from the senior generation as a primary challenge in preparing the next generation for leadership. This figure stands in stark contrast to the global average of 29%, highlighting a deep-seated tug-of-war unique to India's familial corporate structures. For many founders and senior leaders, the business is not merely an asset but an integral part of their identity, forged through decades of navigating economic volatility with a "promoter-led" intuition. This emotional attachment often complicates the transition, even as these enterprises enter a decade of unprecedented growth.
High-Profile Succession Disputes That Shook India Inc
Succession issues in India have frequently spilled into the public domain, damaging family relationships and eroding shareholder confidence. Notable examples include:
- Raymond: The rift between founder Vijaypat Singhania and his son Gautam escalated into a public family tragedy, with Vijaypat accusing his son of forcing him out of the company and his home, leaving him with "nothing."
- Apollo Tyres: In the early 1990s, a dispute erupted between founder Raunaq Singh and his son Onkar Kanwar over control, though Onkar now leads the company's global expansion.
- Ranbaxy: After Parvinder Singh handed control to his sons, tensions emerged over management style and strategy as they expanded into ventures like Fortis Healthcare and Religare.
- KK Modi Group: Following the patriarch's death in 2019, a Rs 11,000 crore inheritance battle pitted widow Bina Modi against her sons, involving claims of boardroom control and assault allegations that reached the Supreme Court.
- Murugappa Group: A conflict arose when daughter Valli Arunachalam sought a seat on key company boards, raising questions about gender bias, though it was resolved through a family settlement in 2022.
Sibling Rivalries and Legal Battles
Succession disputes have also ignited bitter sibling rivalries. The most prominent case involved Mukesh and Anil Ambani, whose feud after their father Dhirubhai's death in 2002 led to a public battle over the Reliance empire, settled in 2005 with a division of assets. Similarly, the Kalyani group faced a lawsuit from Sameer Hiremath and Pallavi Swadi against their uncle Baba Kalyani, seeking partition of family assets, highlighting how such conflicts can extend beyond immediate family lines.
Lack of Interest from the Next Generation
A quiet but growing challenge is the lack of interest from the next generation in joining the family trade. The PwC survey notes that 27% of respondents cite this as an issue, with many younger members preferring to manage family offices, invest in stocks, or pursue independent careers. Uday Kotak, founder of Kotak Mahindra Group, has cautioned that India's economic "animal spirits" are fading as the next generation focuses more on investment management than building companies. Additionally, 56% of survey respondents emphasize the need for specialized skills and education in modern business practices to bridge this transition gap.
Diverging Values and Vision
The survey reveals a significant divergence in perspectives between generations, with nearly 35% of Indian family businesses reporting differences in values and vision. Founders often view the business as a lifetime of sacrifice, while their children may see it as restrictive or misaligned with personal ambitions. Many next-generation members, educated or worked abroad, are exposed to global cultures and alternative career paths, leading to friction within families.
Bullish Outlook Amidst Challenges
Despite these friction points, the outlook for Indian family businesses remains remarkably optimistic. An overwhelming 91% of survey respondents expect growth in the next two years, with 55% pursuing aggressive expansion strategies—nearly triple the global average of 16%. Sanjeev Krishan, Chairperson of PwC India, attributes this "unmatched ambition" to deep purpose, long-term thinking, investments in technology, and resilience built over generations. However, long-term success will increasingly depend on institutionalized decision-making and effective preparation of the next generation to navigate the complexities of succession.
