Family-run businesses are shedding their traditional ways in favour of a more professional approach, argues Abhijit Mukhopadhyay at the Hinduja Group
Family-led businesses are an intrinsic part of the fabric of India’s economy. Domestic companies grew exponentially over the last 25 years, turning names such as Tata, Aditya Birla, Mahindra and Hinduja into global brands.
The journey has been one of learning and transformation. During the 1980s, these and other family-led enterprises operated under strict government control, bureaucracy and the Licence Raj. Businesses were not given much leeway to run independently or smoothly and decision-making powers were limited. There was even a “licence capacity”. So, if you wanted to produce more, you had to obtain the government’s approval. The government exercised control to restrict monopolies, so if you wanted to grow, then you would require permission at every stage.
Abhijit Mukhopadhyay is the president of legal at the Hinduja Group in London.