Succession Wars: What Indian Business Families Must Learn

Let’s talk about power. And control. And knowing when to let go.

India’s business dynasties have built empires that fuel the economy, employ millions, and shape global markets. Yet, many of these storied enterprises, led by family-run promoters, are one misstep away from chaos — often of their own making. Boardroom battles, inheritance disputes, and legal brawls have become as much a part of corporate India’s narrative as its economic growth. Some of the nation’s most respected conglomerates have seen their family disputes spill into salacious gossip columns and courtroom dramas, exposing the cracks in their succession planning.

You’ve seen the headlines. You’ve heard the whispers. The problem isn’t just about who takes over next. It’s about how these businesses — many of which control critical industries — prepare for leadership transition in a way that ensures long-term stability. Unlike professional corporations, where structured succession planning is a given, many Indian family businesses operate on a mix of legacy, entitlement, and resistance to change. The result? Bitter infighting, shareholder uncertainty, and, in extreme cases, the decline of once-iconic enterprises.

Why do business families fight? Is it about money? Power? The CEO chair? Or is it ego—the belief that I alone built this empire, and I alone should decide its future? If it were just a family dinner-table dispute, it wouldn’t matter. But what happens when these fights spill into boardrooms, courts, and front-page headlines? What happens when investors panic, stock prices crash, and thousands of employees are left uncertain about their future? If you were a shareholder in a family-run listed company, how would you feel knowing that your wealth was at the mercy of an internal feud?

Let’s talk about power. And control. And knowing when to let go.

India’s business dynasties have built empires that fuel the economy, employ millions, and shape global markets. Yet, many of these storied enterprises, led by family-run promoters, are one misstep away from chaos — often of their own making. Boardroom battles, inheritance disputes, and legal brawls have become as much a part of corporate India’s narrative as its economic growth. Some of the nation’s most respected conglomerates have seen their family disputes spill into salacious gossip columns and courtroom dramas, exposing the cracks in their succession planning.

You’ve seen the headlines. You’ve heard the whispers. The problem isn’t just about who takes over next. It’s about how these businesses — many of which control critical industries — prepare for leadership transition in a way that ensures long-term stability. Unlike professional corporations, where structured succession planning is a given, many Indian family businesses operate on a mix of legacy, entitlement, and resistance to change. The result? Bitter infighting, shareholder uncertainty, and, in extreme cases, the decline of once-iconic enterprises.

Let’s be honest — most Indian promoters behave as if they will live forever. They assume they’ll always be in control, that “succession” is a conversation for later. But when that later comes suddenly — through illness, investor pressure, or family feuds — there’s chaos. Why? Because there’s no plan.

Too many Indian businesses suffer from the “banyan tree syndrome”. The founder’s towering presence overshadows potential successors, stifling their growth. Unlike professional CEOs, who (at least in theory) prepare for a handover, many family business leaders never even consider grooming their next-in-line. When they finally do step back, it’s often messy — rushed, reactive, and riddled with personal biases rather than strategic intent.

If you’re running a business, let me ask you — have you set a clear transition timeline? Have you empowered the next generation to lead, or are they merely waiting in the wings? And more importantly, are you willing to step aside before the board — or the courts — force your hand?

One of the biggest myths in family business succession is that leadership is a birthright. It isn’t. Ownership can be inherited, but leadership must be earned. Across the world, businesses that survive generations follow one simple rule: put the right person in charge, family or not.

Yet, in India, we see family businesses struggle because the baton is passed to the next of kin, rather than the most capable leader. The excuse? “It’s tradition.” But here’s the truth — tradition doesn’t keep businesses running. Competence does.

Let’s talk numbers. Studies show that more than 60% of family businesses don’t survive beyond the second generation. Why? Because of poorly planned transitions, power struggles, and leaders who aren’t ready for the responsibility. Investors are not blind to this. The moment they sense uncertainty, stock prices tumble, and confidence erodes.

If you were on a plane, would you trust an untrained pilot just because their father was a great aviator? No? Then why expect a business to thrive under an unprepared successor?

How many business leaders in India have exited gracefully, passing the baton when they were still at the top of their game? Very few. Instead, most overstay their relevance, believing they are the company. But leadership is not about you — it’s about the organisation. And an organisation that depends entirely on one person is doomed to fail.

Succession planning isn’t just about picking a successor. It’s about preparing the business to thrive without you. It’s about ensuring continuity, protecting investor confidence, and future-proofing an enterprise. And yet, so many Indian business leaders refuse to have this conversation.

If India’s family businesses want to remain relevant — and not turn into cautionary tales — here’s what they need to do:

1. Start Early – Succession planning should begin at least a decade in advance. No more last-minute scrambling.

2. Separate Ownership from Management – Family members can be shareholders. But the CEO seat must go to the most capable leader, not just the most entitled heir.

3. Strengthen Governance – Independent board members should be empowered, not reduced to yes-men. A strong board ensures smoother transitions and investor confidence.

4. Define Exit Plans – Every leader should have a structured exit roadmap. Retirement isn’t a failure; failing to prepare for it is.

5. Encourage Open Conversations – Families must stop treating succession like a taboo topic. Structured discussions avoid last-minute shocks.

At its core, succession planning is about legacy. And a leader’s legacy isn’t just about what they built — it’s about how well they prepared for the future.

So, the real question is — do you want to be remembered for building an empire? Or for watching it crumble because you couldn’t let go? The choice is yours.

Dr. Srinath Sridharan is a policy researcher and corporate advisor.

Disclaimer: The views expressed here are those of the author, and do not necessarily represent the views of NDTV Profit or its editorial team.