What It Takes to Lead Indian Family-owned Businesses The Entrepreneur India Summit 2024's session on Gen Next leaders wasn't just a discussion about business; it was a testament to how tradition and transformation can coexist, making this new generation a force to be reckoned with

India's economic growth is significantly boosted courtesy of start-ups and family businesses. Ambani, Bajaj, Kumar Mangalam Birla, Jindal, and Mahindra are few names who continue to grow the family business with the next generation taking charge. According to a McKinsey report, Indian family-owned businesses (FOBs) contribute over 75 percent of national GDP, one of the highest percentages in the world.

FOBs were stated to have around 2.3 per cent higher revenue growth than non-family owned businesses. The new generation leading the charge include Anjali Merchant Majithia of Encore Healthcare; Priti A Sureka of Emami Group; Priti Rathi Gupta of LXME; and Deepak Agarwal of Bikaji.

Speaking at the Entrepreneur India Summit 2024 session, each represented an evolving face of legacy businesses and entrepreneurship. The discussion centered on the challenges of balancing innovation with tradition, maintaining legacy brands, reverse mentoring and the often overwhelming expectations that come with inheriting an empire.

Anjali Merchant, director, International markets, Encore Healthcare, acknowledged the benefits of being born into the business. However, she also expressed how the sector's lack of appeal among her peers initially made her question her path. "Dinner table discussions shaped my mindset. But pharmaceuticals is not an industry that is considered cool or something that people in my generation aspire to get into. However, by the time I entered it, I felt like I was already comfortable because I'd been part of these discussions for so long," she shared.

While legacy brought comfort in one sense, it also brought challenges. Priti A Sureka, director, Emami Group, who manages a portfolio of iconic brands, highlighted how difficult it is to keep long-established names relevant across generations. "One of the problems we've been facing as legacy businesses is how to keep the brands relevant. On one side, we have the 50-year-old or the 80-year-old who's consumed it for decades, and then we have to make sure the brand resonates with today's youth and their children. The rate of change today is faster than what it was yesterday and we need to constantly stay agile," Sureka explained.

For the next generation, stepping into the shoes of their predecessors often means grappling with immense expectations. "The moment you step into the business, everyone thinks you're born with a silver spoon, and that means two things. One, the expectations are so high that you're expected to know everything, and two, you still have to listen to your family elders," Sureka remarked. This dual pressure is something that most next-gen leaders have had to contend with.

Deepak Agarwal, managing director, Bikaji Foods International, whose family business has spanned multiple generations, echoed the sentiment of living up to high expectations. He humorously recounted, "My father still thinks I don't do anything. Every morning, he complains about why I'm not at the factory early enough." Agarwal acknowledged that the family business dynamic comes with unique pressures, "These days, I find myself telling my father what to do and how to adopt new technologies, but it's always an ongoing conversation."

On the younger generation providing fresh perspectives and advice to their elders, Priti Rathi Gupta, founder, LXME, shared "We're in a time where the younger generation brings a lot of insight, especially when it comes to technology, and that's a powerful shift for family businesses."

Despite having a successful family business, Gupta founded the fintech platform, LXME. "People often ask me, why start from scratch when you've already built something so big with your family? But at some point in life, you feel there's a specific problem you need to solve, and for me, that was why women weren't participating in financial markets. I realized that with the rise of digitization, now was the right time to address that," she shared.

For the next generation of leaders, staying true to the legacy built by their families while embracing change and innovation is the key to thriving in today's business environment. FOBs contribution to the Indian market is expected to touch 80 to 85 per cent by 2047.