How India Inc 2.0 can transform familial privilege into impactful leadership

From a distance, the heirs of India’s eminent family-run conglomerates seem favoured by destiny. With access to elite global education, rigorous mentorship and unparalleled resources, they appear poised for leadership.

But beneath the apparent privilege is a daunting reality. The successors in dynasties like Reliance, Godrej, Adani, Birla, Tata and Bajaj face formidable challenges — legacy burdens, intense public scrutiny, the delicate task of honouring tradition while innovating for the future, and the challenge of finding their own voice in a business built by a towering patriarch.

THE WEIGHT OF LEGACY
Inheriting a family business is a paradox: It’s simultaneously a blessing and an overwhelming responsibility.

For instance, Mukesh Ambani’s children — Akash, Isha and Anant — bear not only the weight of managing Jio, Reliance Retail and new energy ventures, but must also to live up to the legend of a father who tur ned Reliance into a $250-billion empire.

Similarly, Nyrika Holkar, part of the fourth generation at Godrej, has stepped into a business that’s synonymous with Indian identity.

The problem with legacy is that it sets an invisible benchmark. “Can they ever be as visionary as their predecessors?” is an unspoken question they constantly confront. Even when these inheritors are Ivy League-educated, McKinsey-trained, battle-tested within their own firms, their every move is compared with those of their predecessors. Being in the founder’s shadow and the psychological weight of comparisons can threaten autonomy and individuality. It’s a double-edged sword — the legacy opens doors, but it also limits room for error.

A BALANCING ACT
Another challenge is navigating the traditions inherited while also meeting contemporary demands. T raditional Indian f amily businesses emerged in regulatory environments defined by protectionism, limited competition and incremental change. Today’s successors, however, must manage rapid digitisation, sustainability imperatives and stakeholder capitalism, often with in organisational cultures that remain anchored in hierarchical, conservative decision-making.

So, while Sanjiv Bajaj, chairman and MD of Bajaj Finserv, has been widely credited for pioneering financial innovations and building a fintech powerhouse, he did so while carefully navigating the strong legacy of Rahul Bajaj’s manufacturing-centric vision.

STRUCTURED GROOMING
At the same time, business families have also become more structured about grooming their heirs. Business education is no longer left to osmosis. Formal mentoring, shadowing senior executives and rotations across group companies are standard. Many also bring in external CEOs to create professional buffers.

For instance, Aditya Birla Group’s Kumar Mangalam Birla gave his children an extended runway, encouraging internships and hands - on training across businesses.

Gautam Adani, chairman of the Adani Group, has articulated a clear succession plan, aiming to transition control by the early 2030s.

But even with these measures, the successors must still confront the psychological isolation of leadership, what is often described as the “loneliness of command”. Peer relationships can often become transactional, while relentless media scrutiny denies privacy, significantly affecting emotional resilience and personal identity development.

COLLABORATION AND CONFLICT
Effective succession in large business families hinges on alignment more than mere capability. Divergent visions between generations can become severe impediments.

The recent Godrej family restructuring, where brothers Adi and Nadir Godrej amicably split consumer and the real estate arms, is a rare example of smooth succession planning. But disputes within many Indian family groups can escalate publicly, harming reputational capital and performance.

Mitigating family conflict necessitates clear governance structures. Research consistently highlights that robust family constitutions, shareholder agreements and professional advisory boards can depersonalise family decision-making and facilitate constructive dialogue. Yet, siblings in large family business groups must still demonstrate their ability to manage interpersonal conflicts, notwithstanding the presence of established family governance structures.

JOURNEY TO MERITOCRACY
The shift towards merit-based succession has significantly reshaped India’s family businesses. Rahul Bajaj once famously remarked, “Get me someone who is more capable to run Bajaj Auto than Rajiv,” demonstrating his openness to professional capability over familial entitlement. This emphasis on meritocracy proved prescient, as Rajiv and Sanjiv Bajaj subsequently steered Bajaj Auto and Bajaj Finserv to new heights.

Such an approach can be further strengthened by instituting advisory councils comprising independent experts, providing objective guidance to ensure strategic decisions are made transparently and competently.

Moreover, embracing a pluralistic approach to leadership allows nextgeneration members the flexibility to find roles aligned with their unique capabilities and passions, fostering an environment where meritocracy genuinely thrives.

With India witnessing generational transitions, the future of the country’s largest family-run conglomerates rests on the ability of their next-generation leaders to transform legacy leadership from entitlement to commitment.

Ratan Tata’s ascension as chairman of the Tata Group in 1991 vividly illustrates this journey. Stepping into the colossal shoes of JRD Tata, Ratan initially faced considerable scepticism. He established himself as a globally respected leader and an icon, demonstrating that inheritors can honour their predecessors while courageously forging their path.

For today’s successors,the true challenge lies not in protecting or expanding business empires, but in upholding foundational values, fostering organisational cohesion and breaking down silos to embrace integrated thinking.

In doing so, these inheritors will not merely replicate past successes — they will meaningfully shape the future trajectory.

(Nupur Pavan Bang is directorcum-dean, Institute of Chartered Accountants of India’s Centre of Excellence, Hyderabad. Kavil Ramachandran is professor and senior adviser, Thomas Schmidheiny Centre for Family Enterprise, Indian School of Business. Views expressed are personal.)


(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)