69% of the most valuable family businesses consists of second-generation family businesses.
08 Aug 2024 | 1905 Views | By Autocar Professional Bureau
The Bajaj and Mahindra group run led family businesses are among the top 10 list for the 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses. The Bajaj family ranks second in the 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses, with a value of Rs 712,700 crore.
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The Bajaj and Mahindra group run led family businesses are among the top 10 list for the 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses. The Bajaj family ranks second in the 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses, with a value of Rs 712,700 crore. The Mahindra family ranked sixth in the 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses, commands a value of Rs 345,200 crore. Arya Family led JBM Auto is 16th on the list.
"Family businesses will play a huge role in spearheading India's success story. "Family businesses will continue to be a driver for wealth creation," Anas Rahman Junaid, Founder and Chief Researcher, Hurun India said.
With 28 companies in the industrial products sector valued at Rs 458,700 crore, and 23 companies in the automobile sector and 22 in the pharmaceuticals sector valued at Rs 1,876,200 crore and Rs 788,500 crore respectively, these businesses are pivotal in enhancing India's global competitiveness and economic resilience.
With 15 headquarters New Delhi also stands out as significant bases for these influential family-run companies, supporting industries ranging from technology to real estate. Topping this list are Eicher Motors' Siddhartha Lal Family and Pune-based Kalyani family's Bharat Forge. Also on the list is Chennai-based Murugappa Family's Tube Investments of India.
"Indian family businesses are the heartbeat of the nation's economy, embodying resilience, innovation, and a deep-rooted legacy of entrepreneurial spirit. For instance, around 75% entrants in the list registered a growth in value compared to that of last year. The objective of 2024 Barclays Private Clients Hurun India Most Valuable Family Businesses is to highlight the role of family businesses in Indian economy," he further noted.
15% of the overall board size is represented by women, and they see this improving over the years, noting that there is 'still a long way to go.' "We are seeing a larger focus on ensuring that women are more involved in the businesses," said Nitin Singh, Head of Private Bank Asia Pacific.
To be included on the list, a next-generation member from the founding family must be actively involved in managing the business or serving on its board. Value calculations are as of 20 March 2024. The methodology for valuation excludes private investments and liquid assets, and it adjusts for cross holdings to prevent double counting.
Nitin Singh added, "The fact that 69% of the most valuable family businesses consists of second-generation family businesses, with the remainder being third generation or older, speaks volumes about the resilience and adaptability of Indian family businesses. As is evident, family businesses remain powerhouses of growth and resilience in the modern era."