Indian Family businesses – the threads of India’s robust socio-economic fabric

Indian family businesses, existent for centuries, have in fact been the pivot of transformation of the Indian Economy. Independence and the partition, forced many a family to start new enterprises as a mean of survival and, lo and behold, these soon emerged as the growth engines of the economy. And it does not stop there – they have contributed to the overall growth of the nation and her people – be it in terms of employment, technology, education or, simply put, general upliftment of society - in building a robust socio-economic fabric.

This became more pronounced since the liberalization of the economy in the 1990s, when the doors opened for international collaborations and free transfer of technology. A whole new generation of entrepreneurs came into existence and thrived, making the nation progress such that it is now gearing up to a target of a 5 trillion economy within the next few years.

Indian family businesses, today are valued at almost 70 lakh crore Indian rupees – which bears testimony to their contribution to the growth, nay, growing Indian Economy. While the Indian Economy is expected to hit this milestone by 2026, one can only assume the growth of the Indian Family Businesses and their contribution to cross many a milestone in the socio-economic growth.

However, the influx of the multinational giants into the country took away the spotlight from the home-grown businesses. There seems to be a general disposition that the overseas companies have brought in prosperity to the country, and that has, over the years, put the family businesses in the shadows.

But the spotlight is once again on these Family Businesses that have played a crucial role in the uptake of the Indian Economy. The Indian Family Business Awards, instituted in 2021, is an initiative to commemorate the pioneers of these pivotal businesses and to inspire future generations with the potential that strong family businesses hold, and for the role they play in shaping India.

Family businesses are known to have earned the trust of consumers - hence the exponential growth of the likes of renowned ‘Hamara Bajaj”, and the legendary ‘Nirma’ that became a challenger to multinational behemoth! Data also implies that most of these businesses are manpower or service intensive, contrasted to capital intensive – thereby generating huge opportunities of employment to the people.

Another score that Indian Family Businesses play a prominent role in, is understanding the pulse of the local communities and the nation. When it comes to customer-centricity, some of the best businesses are led by women. According to Forbes magazine – “organizations led by women are more profitable, socially responsible and provide better customer experiences.” It comes as no surprise then that the number of women running family businesses in India is on the rise. Bringing this to prominence is a special category in the IFBA for Family Businesses led by a woman, the winners in 2021 being Fratelli Wines and JK Laxmi Cement.

Family businesses, by definition, are built for families and are, therefore, to last, and provide. By default they become socially responsible as they understand commitment, and have a strong culture that binds them to their roots. In 2021 India recorded a whopping 100 crore rupees donations to social causes, and more remarkably, the top eleven donors run family businesses. While large enterprises set up foundations to work for the upliftment of society in a formalized manner, smaller entrepreneurs carry out their philanthropic undertakings at a more micro level. Individually they provide scholarships, or even no-interest loans for their employees’ children’s education, while others have founded training centers like the Usha Silai School to empower women. Data proves that 78% of family businesses went out of their way to retain their staff through the recent adverse conditions of the last couple of years, bearing testimony to the fact that these enterprises care!

Most Family Businesses, started before the 21^st century are managed by second or even third generations today. These young entrepreneurs, having imbibed the values and traits of their predecessors are well educated, being exposed to global practices. Supplementing their almost in-bred knowledge of the business with new-age tools and competencies they take their family businesses into the new age of endless possibilities. They along with the available externally employed talent professionally manage the business, laying the foundation for continuity and creating a legacy. Tally Solutions, the winner in the Mega category, is one such business, started by two generations - the Late SS Goenka and his son, Bharat Goenka, who symbolize age-old stability and wisdom, is now integrating by the third generation, Tejas and Nupur Goenka for new-gen technology and innovation to deliver robust business management applications to small and medium enterprises.

Key Winners at The Indian Family Business Awards 2021 - The Best Family Business went to SRF Limited, in the Giga category, Kajaria Ceramics, in the Mega category, and Tally Solutions in the Super category. Best Family Business led by a Woman went to Fratelli Wines, in the Super category, and JK Laxmi Cement in the Mega category. Apollo Hospitals, INOX Air, and Inland World Logistics were honoured for the Best COVID-19 Response for their contribution to the battle against the pandemic while Dixon Technologies won the Special Jury Award for Most Enterprising First Gen Business. Tenon Facility Management won the award for best governance.

The Indian Family Business Awards in its first edition post its phenomenal success in 2021, is back with its second edition – Indian Family Businesses Awards 2022, presented by Moneycontrol, co-created with Waterfield Advisors.
Family businesses are invited to nominate themselves categories based on their turnover: Super (under Rs 1,000 crore), Mega (Rs 1,000 to Rs 5,000 crores), Giga (over Rs 5,000 crore) and Philanthropy.
An illustrious jury panel evaluates the applicants through a robust matrix and interviews, and the winners announced at a gala event amongst their peers. All eyes are now set on the second edition of the event. Nominations are open and the resplendent awards night is being looked forward to with great anticipation.

For more details please visit: https://www.moneycontrol.com/msite/indian-family-business-awards