Jan 17, 2005

Succession plan for Indian businesses

Almost half of the Indian top 100 organizations are family run businesses, so after the Reliance imbroglio between the second generation entrepreneurs, it's time for other businesses like the Bajaj's , Dr. Reddys' Labs, Ranbaxy, Ruias et al to put in place a proper succession plan.

Says Kavil Ramachandran, professor of strategy at the Indian School of Business in Hyderabad that the Ambani split could also pressure others to resolve their own issues. "I see more family businesses now acknowledging the need to have proper succession planning," he says.

Let's see how they settle the ownership vs management issue...