PR OFILE


Left: The branded thermo-mechanically- treated steel bars which Radha Smelters produces


Opposite top: The family firm’s state-of-the- art manufacturing units include steel melting induction furnaces, a fully automated hi-speed rolling mill, continuous casting machines and world-class testing facilities to make high- quality primary steel


FAMILY BUSINESSES LOSE THEIR LUSTRE?


Succession in India is at a crossroads. The PwC India Next Gen Study 2018 reported 50% of the next generation said they expect to manage the business one day, though only 19% acknowledged that this had been agreed with the current generation.


At the same time, a 2016 PwC study found only 35% of the current generation plan to hand over the


business to the next generation. The findings suggest a mismatch in expectations between the current owners and those set to take over. Anecdotal evidence also suggests that a growing number of the Indian next- generation are passing over the option of joining their family business, in favour of following their own pathways as entrepreneurs. Which path will they take?


Dr Kavil Ramachandran, executive director of Thomas Schmidheiny Centre for Family Enterprise at the Indian School of Business, agrees that Indian society is undergoing major changes. The next generation, in general, are feeling less responsibility for continuing their family‘s legacy, he notes. “Educated youth are not inclined to “sweat it out” in a medium- sized manufacturing company or a traditional distribution business, such as automobile leadership. With growing entrepreneurial opportunities and the urge to have


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CAMPDENFB.COM


ISSUE 75 | 2019


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