Press Release on
CII-FBN India Family Business Summit
Future ready Family Businesses

Chennai will witness the congregation of a large number of Family Businesses on 16th and 17th September, 2022 for the CII – FBN India Family Business Summit themed on “Future Ready Family Businesses”.

This was informed by Mr. R. Dinesh, President Designate, Confederation of Indian Industry who is also the Chairman of the CII-Family Business India Chapter Council and Executive Vice Chairman of TVS Supply Chain Solutions Limited. He was accompanied by Mr. Kanishka Arumugam, Chairman, NextGen committee, CII FBN-India Chapter & Co-CEO, EKKI Water Technologies Ltd.

Mr. Dinesh further mentioned that the CII Family Business Network (FBN) is the largest body of family businesses in the country backed by CII’s legacy of over 127 years of serving the needs of the Indian industry. FBN India provides a secure and trusting environment for members and discuss family and business issues threadbare, within the community and in a closed door environment. CII’s journey in this phase started in 1999. Subsequently it collaborated with the Family Business Network – International – the most impactful global body for family businesses in 2005. Today FBN international has 34 Chapters (including India) with approximately 18,000+ members out of which 6400 are NxtGen members (comprising leaders aged between 18-40 years of age) .

In partnership with the Family Business Network, International the FBN India chapter works on all dimensions of Family Businesses with the vision of making business families in India thrive and transform across generations to build a sustainable future. It is a community of communities with several thrust pillars such as family sustainability, family values and governance mechanisms, succession planning, transition to NxtGen leadership, entrepreneurship, wealth creation through Family Offices, being future ready, Learning Journeys, mentoring and internship and several interventions related to India specific knowledge creation and knowledge dissemination. It provides a wide variety of formats for exchanging knowledge, information and perspectives as well as enabling the Senior Gen and the NxtGen to come together on one platform to deliberate and identify solutions to pressing issues.

While explaining the importance of Family Businesses in the economy, Mr. Dinesh mentioned that Family Businesses, after all, make up over 90% of the world’s companies and most of the companies (91%) listed on the Indian bosses are all family led or homily managed. Large family firms and business groups have consolidated their positions even more in recent years as these business families and the firms owned by them are firmly embedded in the society and institutional context and develop patterns of trust and confidence amongst stakeholders. Therefore, they have better access to social and financial capital and are willing to embark on enterprises involving considerable risk with a reasonable chance of success. This reinforces the continued cultural, economic and social importance family firms in India. He added that family businesses make up for an astonishing 79% of India’s GDP which have displayed conviction and resilience even under times of volatility and uncertainty. However, it is essential for all of them now to adopt new age techniques and competencies to grow in today’s fast paced world.

Mr. Dinesh further mentioned that the two-day Summit will bring together several families from India, Asia and Europe to share learnings, especially on how they have faced a difficult last 2-1/2 years and highlight the roles played by the Senior and Nxt Gen together in stewarding the family. Beyond typical business challenges Family Businesses are confronted with their unique challenges of dealing with the additional layer of managing expectations of another set of stakeholders within relations To tide over the crisis and transforming respective businesses to fit the requirements of the new age . Mr. Dinesh mentioned that such an “in person” Summit, which would enable wide networking and interactions amongst families, was being held after almost 3 years.

In setting the context, Mr. Dinesh mentioned that the pandemic, which has disrupted lives and livelihoods to unprecedented levels, has accentuated the need for perspective sharing amongst family businesses to enable the dissemination of useful insights. While the health and safety of the people remained on top of the mind, business leaders were forced to react with agility and reprioritize and also reflect on their larger purpose in society. In such challenging times. The strong fundamentals of Family Businesses that are ‘commitment to core values’, ‘long-term thinking’ and ‘sensible leveraging’ have supported many Family Businesses to recover at speed. “Digitisation” , “innovation” and “growth” are the key priorities for Family Businesses today to ensure sustenance in the days to come.

Building enduring legacies are critical to businesses . It acquires a completely different dimension in Family Businesses, dealing with the additional layer of managing expectations of another set of stakeholders within relations. Family business owners, above all, want to make a positive impact and ensure a legacy for future generations which becomes critical in the decision-making process. Creating buy- ins from a diverse group is challenging, especially when family sensitivities are involved.

Another key observation of Mr. Dinesh was that Family Businesses have proven robust and adaptable – and as we have come to expect they are taking a “people first” approach, prioritizing the well-being of their employees and supporting their local communities throughout the crisis. In fact 70% of Indian family businesses in the pandemic in 2020 needed no additional capital and only one third. i.e. 35% were cutting dividends during the crisis.

Mr. Kanishka Arumugam, while explaining the rationale of the Summit, mentioned that “Growth” is the lifeblood of family businesses and it is essential to ensure that the business will continue to prosper for future generations. Entrepreneurship is the bedrock on which the family businesses have been built over generations. India’s family businesses, rank No. 3 in the world and they have fostered and nurtured entrepreneurship across continents. Beyond India, the economies of South and South Eeast Asia and many in Africa owe, much in this context, to family businesses hailing from Indian communities. Family entrepreneurship – or the creation of new ventures and strategic renewal or innovation within existing family businesses by either family members or others in association with the family is now the “norm” rather than the “exception in this sphere” Leveraging opportunities, both within and beyond legacy businesses, requires tactful handling. That Next Generation takes the lead in bringing innovation and a fresh outlook, challenging the status quo, while the Senior Gen. transmits the insights and delineates their journey through the maze, guiding the Next Generation to their desired destination, There is also, at the same time, a need to preserve the wealth while keeping an eye on multiplying it by capitalizing on the emerging opportunities optimally. The pandemic has united generations in family businesses around a common goal i.e. “driving growth” to secure the stability of the business and the family. A very optimistic message in these challenging times is that the Next Gens are eager to learn new skills, be committed and builds trust - the hallmark of Family Businesses everywhere, including India

In this context the key objectives of this Summit being held in person are :

  • • Harmonize perspectives between the NexGen and Now Gen to enable meeting challenges together and capitalize on opportunities,
  • • Synergize the three dynamics of Family Businesses, namely business, family and wealth,
  • • Deliberate the main questions that Family Businesses need to focus on in the new age,
  • • Highlight a guiding principle, purpose and growth drivers for a Family Business
  • • Exchange thoughts, best practices and network with leading Indian Family Businesses.

Mr. Dinesh further mentioned that the Knowledge Partner of the Summit is PwC ..and the content of the summit has being heavily drawn from the global research of PwC.

In this context, this Summit will specifically focus on several areas such as:

  • • Five questions that family businesses need to focus on in the New Age
  • • Intergenerational dialogues on these questions to derive global and national perspectives on them
  • • Entrepreneurship and growth imperatives for family businesses
  • • PWC Global NexGen survey report insights
  • • Making digitalization India Right with a focus on what and how does digitalization impact Family Businesses in India and elsewhere
  • • Embracing Risk in the face of disruption.

Some of the key speakers will include Mr. Sanjiv Bajaj, President, Confederation of Indian industry, Mr. R Dinesh, Mr. Farhad Forbes Chairman, Family Business Network International and Co Chairman, Forbes Marshall Pvt Ltd., . Mr. Kris Gopalakrishnan, Past President, CII and Co Founder Infosys, Mr. Shashwat Goenka, Co Chairman, CII- Family Business India Chapter Council and Director., PCBL limited, Mr. C. Banerjee, Director General, CII, Mr. Kanishka Arumugam, , Ms. Rie Yamada, Yamada Family Company Limited, Ms. Natsuki Yamada, Yamada Family Company Limited. Mr. Matteo Fumagalli, , International Auditor, SOL, S. p. a., Mr. Marco Rossi, Co-CEO and CMO. IRSAP S.p.a and several CEOs of Indian Family Businesses and a wide range of global and national experts on the subject of Family Businesses from PWC.