Family Businesses are World Class: Mr. Ajay S Shriram
Addressing the Session on “Securing the future of Family Businesses: Purpose-Driven and Responsible” Mr. Ajay S Shriram dwelled that Family Businesses are world class given the Innovation and the eco system in which they operate. Mr. Ajay S Shriram, Chairman & Senior Managing Director, DCM Shriram Limited was speaking at the Annual Business Summit 2024 of the Confederation of Indian Industry (CII) with the theme “Co-Creating the Future Responsibly: Role of Business” at New Delhi today.
He laid importance on Corporate Governance, laying down Objectives, Vision and setting the Value in the Company. He emphasized the need to have Transparency and Accountability in Family Businesses. He also highlighted the importance of having Strategic Planning in Family Businesses. Mr. Shriram suggested that there is need to ensure smooth continuity of Family Businesses across Generations.
Mr. Ajay Shriram emphasized the need to get Inputs and perspectives from outside the family. He laid importance on communication which builds trust in Family Business. He said by communicating more, passion can be established. He suggested that Family Businesses are champions of Environment, Sustainability and Governance. He stated that laying down of purpose is important. He stated that Family Business needs to balance its approach like a trustee for the next Generation. He laid importance on having the right people in the organization and to keep them motivated. He emphasized the need to adopt checks and balances in the organization. He further stated the need for the companies to operate under good and tight control process, with good Corporate Governance. He further stated that any business proposal or Idea needs to be logical.
Mr. Kulin Lalbhai, Executive Director, Arvind Limited stated the importance of having core value systems in the organisation. He further said that there is a need to create an Institution which stands for something while amplifying that institutions are more important than the person. He laid importance on long-term thinking and how to survive on a long-term basis. He mentioned the combination of deep value and humility. He further stated that in a country like India companies have to be a positive force towards change in society. He further said that Government cannot do everything hence companies need to make change in society at large. He emphasized the importance of Diversity, Expansion and Disruption. He emphasized high Integrity as a value. He stated that promoters of Family Business need to be conscience keepers. Further, the next generation needs to be ambassadors.
Ms Geetanjali Kirloskar – Chairperson & Managing Director, Kirloskar Systems Limited laid importance on change of path and ownership in Family Business as time moves on. She further said that Family Business is here to stay. Post Pandemic Family Business has survived. She said that Family Business forms significant part of Indian Economy. She stressed on strong relationship between trust and profitability in Family Business. She emphasized the need to ensure that there is no trust deficit in Family Businesses. She said that Trust is the most important value in Family Business. She said there is need to integrate Value System in an Organization. She highlighted the importance of having Trust particularly with International Collaborators and Joint Ventures. She emphasized the need of the hour is Foreign Collaboration. She further said that trust becomes an asset in Joint Ventures. She highlighted the importance of Family Businesses to remain compliant with the regulations.
Mr. Vir Advani – Chairman & Managing Director, Blue Star Limited said that India is on its way to a $ ten trillion economy and hence we should not be complacent. He said that Family Businesses started in India during Independence. He said for a Family Business to thrive, it must focus on Strong Governance, Succession Planning, Product Innovation, Digitization etc. He stated that Family should define the purpose of the Organization. He further emphasized the need to balance between traditional core values and innovation in Family Business. He harped on the need to determine risk profile in the Family Business to ensure longevity. He further said that Indian Family Businesses are taking their responsibility seriously and hence they will thrive and not survive in times to come. He emphasized that the level of transparency is must in Family Business.
Mr. Madhavkrishna Singhania – Deputy Managing Director & CEO, JK Cement Limited said Family Businesses are mix of capitalism and socialism. He laid importance on trust in the Family Business. He said strong communication channels at the home is good for Family Business. He laid the importance of involving family members to build trust in the organization. He said values of the family forms value of the family business. He stated that Family Business needs to keep in mind the needs of society and value system. He said that value systems need to be passed to the next generations. He further stated that business vision and family vision are different. He suggested that new ideas of family members build the growth of Family Business.
New Delhi,
18 May 2024