Why passing the baton is a major challenge for India’s business families

Even as Indian family businesses are outpacing their global peers in optimism, the internal mechanics of passing the baton remain fraught with complexity and, at times, acrimony, as highlighted in a survey by global consulting firm PwC. According to PwC’s 12th Family Business Survey in India, 52% of respondents identified resistance from the senior generation as a primary challenge in next-generation preparation. At the global level, only 29% reported resistance. This highlights a deep-seated emotional and structural tug-of-war in the succession issue within the families in India. Resistance from the senior generation to transition leadership remains a significant hurdle for family-run enterprises, even as they enter a decade of unprecedented growth. In India’s family-run corporate empires, succession issue sometimes spills into the open, becoming messy, emotional and deeply human. Some of the most striking examples are Raymond, Apollo Tyres, Ranbaxy and the Modi Group. For many founders and senior leaders, the business is not merely an asset as they consider it their identity. Decades spent navigating economic volatility have forged a leadership style rooted in “promoter-led” intuition. Sanjeev Krishan, Chairperson, PwC India, said, “At a time of global uncertainty, Indian family businesses stand out for their confidence and ambition. Our survey highlights a strong belief in India’s economic momentum, with family enterprises looking beyond stability to pursue expansion, new adjacencies, and professionalised leadership models. This optimism is rooted in deep purpose, long-term thinking, investments in tech and interest in AI, and resilience built over generations.” ## Succession issues in business families India Inc has witnessed numerous tussles within business families over control of the companies they built. In several cases, these disagreements spilled out of boardrooms into the public domain, with family members trading accusations through the media or courts. Such disputes not only damage family relationships but also erode shareholder confidence, hurting business performance. At Raymond, the rift between Vijaypat Singhania and his son Gautam was not just a corporate dispute. It became a public family tragedy. Vijaypat, who built Raymond into a global textile brand, gradually handed control to Gautam. What followed was a relationship that unravelled beyond repair. Vijaypat accused his son of forcing him out of the company and JK House, saying he was left with “nothing.” Today, Gautam Singhania controls Raymond, while Vijaypat lives separately, speaking painfully about the betrayal. Among other high-profile clashes, Apollo Tyres saw a dispute in the early ’90s, when Onkar Kanwar, then Vice-Chairman and Managing Director, tussled with his father Raunaq Singh, the company’s founder and Chairman since 1976, over control. Onkar Kanwar now serves as Chairman, guiding Apollo Tyres into its global expansion plans. Pharma major Ranbaxy, acquired by Sun Pharma, is another instance. After Parvinder Singh handed control to his sons, tensions emerged over management style and strategy as the brothers expanded aggressively into Fortis Healthcare, Religare and other ventures. While it wasn’t a direct “father vs sons” battle like Raymond, conflicts over legacy, control and direction brewed quietly. Further, the KK Modi Group has become synonymous with drawn-out legal battles. After the death of the patriarch in 2019, the family row erupted over a Rs 11,000 crore inheritance, centering on control of Godfrey Phillips India, pitting widow Bina Modi against her sons, Samir and Lalit. It has involved claims of boardroom control, assault allegations and legal challenges that reached the Supreme Court. The dispute within Chennai-based Murugappa Group surfaced after the passing of patriarch MV Murugappan. At the heart of the conflict was his daughter, Valli Arunachalam, who sought a seat on the boards of key group companies, including Tube Investments of India. She contended that, as an equal shareholder, she had been unfairly sidelined from leadership, raising questions about gender bias in traditional business families. The disagreement escalated into a legal battle, but in 2022, the matter was resolved through a family settlement. ## Siblings in tussle There have been brother vs brother, and brother vs sister tussles as well. The dispute between Mukesh and Anil Ambani began after the death of their father, Dhirubhai Ambani in 2002. With no clear succession plan, differences between the brothers quickly surfaced over control of the Reliance empire. What followed was a bitter public feud — marked by boardroom battles and media leaks — unsettling investors and India Inc alike. In 2005, the issue was settled with Mukesh retaining control of Reliance Industries, while Anil took charge of telecom, power and infrastructure businesses. There was tussle on the issue of division of assets in the Pune-based Kalyani group with Sameer Hiremath and Pallavi Swadi filing a suit in a Pune court against their uncle Baba Kalyani, who is the Chairman of group’s Bharat Forge, seeking a partition of Kalyani family assets. Sameer and Pallavi are the children of Sugandha Hiremath, Baba Kalyani’s younger sister. Baba Kalyani and Sugandha were involved in another court battle after the former sought to increase his group’s stake in Hikal by 5%. ## Lack of interest from GenNext One of the quiet but growing challenges facing India’s family-run businesses is the lack of interest from the next generation. While founders often assume their children will naturally step into leadership roles, the reality on the ground is far more complicated as many are interested in running family offices and investments. Uday Kotak, founder of Kotak Mahindra Group cautioned that India’s economic ‘animal spirits’ are fading as the next generation of business families focuses more on managing investments than building and running companies. “They claim to be managing family offices and investments, trading in the stock market, allocating funds to mutual fund and treating it as a full-time job,” he said. Hence, it’s no surprise the survey states that as many as 27% find a lack of interest from the next generation in joining the family trade. Moreover, it says that 56% cite a need for specialized skills and education in modern business practices to bridge the transition. The PwC survey data reveals a striking divergence in perspectives between generations. Nearly 35% of Indian family businesses report differences in values and vision between the older and younger generations. For many founders, the business represents a lifetime of sacrifice, built through decades of risk-taking and long hours. However, the same enterprise for their children can feel restrictive, outdated or misaligned with personal ambitions. A leading business group with interests in automobiles and financial sector based in Pune is a good example. However, this issue never flared up but settled peacefully. Many next-generation members have studied or worked abroad, gaining exposure to global cultures, professional management styles and alternative career paths. As a result, they may be less inclined to run a family enterprise. Some prefer being independent entrepreneurs, others opt for corporate careers, while a few consciously choose to stay away from it altogether. This gap in outlook often leads to friction within families. ## Family businesses bullish Despite the friction, the outlook for Indian family businesses is remarkably bullish. An overwhelming 91% of the Survey respondents expect growth in the next two years, with 55% pursuing aggressive expansion strategies, which is nearly triple the global average of 16%, it says. The “unmatched ambition” of Indian entrepreneurs is fuelled by a young workforce and digital acceleration. Long-term success will increasingly depend on institutionalized decision-making and the effective preparation of the next generation.