When celebrated entrepreneurs like Dilip Piramal make a shocking choice to sell their decades-long legacy, what does that narrative reveal for Indian-run family businesses?
For the most part, it spotlights the hidden challenges of automatically assuming the family throne. While traditionally, Indian family founders have had the outdated view that their kids would one day take over the business, modern times now suggest otherwise, arguing that resorting to the next generation is a risky move. That’s why for one expert, he believes in the power of intentional succession planning to sustain the business instead.
“Succession is not inheritance; it’s a strategic choice that shapes the future of an enterprise. Preserving legacy isn’t about keeping a surname at the helm—it’s about choosing leaders best equipped to drive progress. Competence over convention is the only way to ensure resilience in the face of generational change,” Ankit Shrivastava said, Founder & Managing Partner of Enventure, a U.S.–India private equity firm supporting founder-led businesses in generational planning.
Piramal is the chairman of the renowned luggage company, VIP Industries, but recently announced his decision to sell 32% stake to private investors completely separate from the family tree. Leaving a reputable brand behind, Piramal’s instance is a common trend too often seen amongst everyday Indian families.
Yet, Piramal’s instance in mind, what is the obsession with presumed jobs in typical Indian households?
For a long time, Indian family culture has involved high parental expectations, where kids were raised on the idea that a well-rounded education is nonnegotiable and perfectionism is the only way to a stable life. As part of the Asian values, the younger generation has been required to fulfill familial responsibilities with a strong discipline at the forefront.
That same concept is most prominent in families who own businesses, given there is an unspoken rule that kids born into the company should be the next natural successor to lead the way. In taking ownership, the kids will inevitably succeed in life and thus, meet the longtime parental beliefs.
But as expert Shrivastava explains, kids are no longer prepared nor willing to take reign, and it is time to shift to a more purposeful business mindset. With a thoughtful succession plan, business owners will ultimately find long-term stability without compromising their vision or identity.
On the other hand, there are negative implications when owners only look from within.
“When the next generation lacks interest or preparation, defaulting to tradition can lead to stalled growth, governance gaps, and lost market value,” Shrivastava explained.
Furthermore, the desire to pursue untraditional careers is growing amongst the Indian community. Famous actors like Priyanka Chopra and Karan Brar are real-time examples, who both exemplify that success can be achieved through the arts or other fields, rather than through conventional industries like medicine, or in this case—the entrepreneurial sector. As a result, ambition is no longer limited to corporate life nor family ties.
And in the case of Piramal, he highlights too well what happens when a family entity is dependent on the next in line. As a father himself, he was suddenly forced into a bold decision after his daughters expressed reluctance in taking the torch.
The hard truth of it is, legacy is not defined by blood, and Indian family dynamics are quickly becoming a harmful mentality for business owners. Even in the strongest dynasties, a downfall soon awaits if there is no proper succession plan in place.
For all those Indian family business founders, how will you take your business to the next step? Are you in the majority expecting your kid to take ownership? Do you have a succession plan inclusive of all potential successors? These are the important questions that will determine what the future of your dream ultimately holds.
Photo: Ben Rossett
