But under obvious privilege is a daunting reality. Successors of dynasties like Reliance, Godrej, Adani, Birla, Tata and Bajaj face great challenges – the burden of heritage, strict public scrutiny, the sophisticated task of respecting the tradition of future innovation, and the challenge of innovating for the future, the finding one’s own voice in building one’s own business by towering customers.
The weight of heritage
Inheriting a family business is a paradox: it is a blessing and overwhelming responsibility at the same time.
For example, Mukesh Ambani’s children – Akash, Isha and Anant – not only bear the weight of managing Jio, Swiss retail and new energy venture capital, but also must live up to the legend of a father, whose legend boils down to a $250 billion empire.
Similarly, Nyrika Holkar, part of Godrej’s fourth generation, has stepped into a business that is synonymous with Indian identity.
The problem with legacy is that it sets an invisible benchmark. “Can they have as far-sighted as their ex?” They are constantly facing an unspoken question. Even if these successors are Ivy League education, McKinsey training, combat-tested companies, their every move is compared to the every move of their ex. In the shadow of the founder, comparative psychological weight may threaten autonomy and personality. It’s a double-edged sword – traditionally opening doors, but it also limits the wrong space.
Balanced behavior
Another challenge is browsing inherited traditions while meeting contemporary needs. t Raditional Indian F Amily Enterprises emerge in a regulatory environment defined by protectionism, limited competition and incremental changes. But today’s successors must manage rapid digitalization, sustainability commands and stakeholder capitalism, often in organizational culture that still relies on hierarchical, conservative decisions.
So while Sanjiv Bajaj, chairman and MD, Bajaj, is widely praised for pioneering financial innovation and building a strong country in fintech, he has carefully browsed Rahul Bajaj’s strong legacy.
Structural modification
At the same time, business families have become more structured to embellish their heirs. Business education is no longer left to infiltration. Formal guidance, cover group senior management and rotation of the company are standard. Many also introduce external CEOs to create professional buffers.
For example, Kumar Mangalam Birla of Aditya Birla Group gave his children an extended track, encouraging internships and hand-to-hand training across businesses.
Adani Group Chairman Gautam Adani has articulated a clear succession plan aimed at a transition in the early 2030s.
But even with these measures taken, successors still have to face psychological isolation of their leaders, often referred to as “the loneliness of command.” Peer relationships often turn into transactions, and ruthless media censorship denies privacy, seriously affecting emotional resilience and personal identity development.
Collaboration and conflict
The effective inheritance effect of large-scale enterprise families is greater than that of merely capable. Different horizons between generations can be a serious obstacle.
The recent reorganization of the Godrej family, the brothers Adi and Nadir Godrej, friendly splitting consumers and real estate weapons, is a rare example of smooth succession plans. However, disputes within many Indian family groups may be publicly escalated, thus damaging reputational capital and performance.
Reducing family conflict requires a clear governance structure. The study consistently emphasizes that a strong family constitution, shareholder agreements and professional advisory committees can eliminate family decision-making and promote constructive dialogue. However, despite established family governance structures, siblings in large family business groups must demonstrate their ability to manage interpersonal conflicts.
The journey of elite politics
The shift to performance-based succession has significantly reshaped family businesses in India. Rahul Bajaj once famously said, “Let me be a man who is more capable of running Bajaj cars than Rajiv”, which shows his professional ability to be open to family rights. This emphasis on elite level is prescient, as Rajiv and Sanjiv Bajaj then took bajaj auto and bajaj finserv to new heights.
This approach can be further strengthened by establishing an advisory committee composed of independent experts, providing objective guidance to ensure transparent and capable of making strategic decisions.
Furthermore, adopting a diverse approach to leadership gives the next generation of members the flexibility to find roles that align with their unique abilities and passions, thus facilitating an environment in which the elites truly grow.
As India witnesses a transition from generation to generation, the future of the country’s largest family-run group depends on their next generation of leaders’ ability to transform legacy leaders from rights to commitment.
The journey is vividly illustrated by the promotion of Ratan Tata’s chairman as the Tata Group in 1991. Ratan walked into JRD Tata’s huge shoes and initially faced considerable doubts. He established himself as a globally respected leader and idol, showing that heirs can pay tribute to their exes while being brave enough to train their path.
For today’s successors, the real challenge is to protect or expand business empires, but to maintain fundamental values, promote organizational cohesion and break down silos to embrace comprehensive thinking.
By doing so, these successors will not only replicate past successes—they will meaningfully shape the trajectory of the future.
(Nupur Pavan Bang is a director of the Chartered Accountant College of Centre of Excellence in India, Hyderabad.
