ET Family Business Awards: Next-Gen Leaders on Balancing Legacy, Innovation, and Governance
Leaders from top Indian business groups and advisory firms gathered at the ET Family Business Awards panel, titled ‘Family Business: Retaining Entrepreneurial Edge and Institutionalising Culture’, to discuss how family-owned enterprises are navigating growth, governance, and technological disruption. Moderated by ET’s Arijit Barman, the discussion featured Anchit Nayar of Nykaa, Apurva Parekh of Pidilite Industries, Nyrika Holkar of Godrej Enterprises Group, Vishal Kampani of JM Financial, and Abhijit Joshi of Veritas Legal. The panellists examined how India Inc’s next generation is combining family heritage with professional management, strategic capital allocation, and structured risk-taking.
What Happened
During the event, industry leaders rejected the notion that legacy family enterprises are becoming overly conservative. Instead, panellists highlighted that established business families are taking larger, more structured bets due to faster economic expansion, improved capital access, and expanding global opportunities. The discussion covered key areas such as succession planning, private equity integration, long-term brand building, and the role of family offices in funding high-risk, deep-technology ventures.
Apurva Parekh, executive vice-chairman of Pidilite Industries, emphasized that well-managed family businesses with strong balance sheets are increasingly willing and equipped to handle higher risks. He noted that Pidilite actively incubates pioneering businesses that may take years to yield financial returns, cautioning against evaluating company readiness solely through immediate revenue from new products.
Vishal Kampani, vice-chairman and managing director of JM Financial, explained how family offices are altering capital deployment in India. While listed companies focus investments on core and adjacent operations, moonshot investments in startups and frontier technologies are increasingly funded through family investment vehicles. Kampani stressed the importance of balancing heritage with hustle and noted that private equity serves as both a source of growth capital and operational discipline.
Nyrika Holkar, executive director at Godrej Enterprises Group, described Godrej’s approach as ‘calibrated risk-taking,’ focusing on manufacturing depth, engineering capabilities, and long-term strategic partnerships. She cited the group’s four-decade investment in aerospace as an example of patient capital that takes decades to generate returns. Holkar also shared that the Godrej family deliberately avoided writing an exhaustive investment framework to prevent constraining future generations, relying instead on shared core values.
Anchit Nayar, executive director and CEO of Nykaa, discussed how younger family-run firms respond to rapid technological disruption and emerging consumer trends. He pointed out that Nykaa relies significantly on insights from its Gen Z and millennial workforce to shape strategic decisions, such as its quick adaptation to the rise of quick commerce.
Abhijit Joshi, founder and managing partner of Veritas Legal, addressed the governance and succession challenges facing next-generation leaders. He noted that modern business environments are increasingly complex, requiring successors to carefully evaluate their readiness before making transformational moves. Joshi emphasized that family constitutions must remain dynamic guiding principles rather than rigid, unchangeable rules.
Key Highlights
- Structured Risk-Taking: Established Indian family businesses are executing larger but more disciplined bets backed by strong balance sheets and professional management.
- Role of Family Offices: Family investment vehicles are becoming key sources of patient capital for startups and deep-technology sectors, allowing listed entities to concentrate on core operations.
- Calibrated Innovation: Innovation in legacy groups is being driven through long-term investments in manufacturing capabilities and strategic startup partnerships rather than short-term venture returns.
- Evolving Governance: Leaders are opting for flexible governance frameworks and dynamic family constitutions that emphasize shared values over restrictive rules.
- Workforce Insights: Emerging consumer trends, such as quick commerce, are being met by leveraging insights from Gen Z and millennial employees alongside strategic family debates.
Why This Matters
The insights from the panel illustrate how family-owned businesses—a major pillar of the Indian economy—are institutionalizing their governance while maintaining an entrepreneurial edge. By separating core listed company investments from high-risk moonshots through family offices, business families can preserve capital discipline without missing out on technological disruptions. Furthermore, adopting flexible constitutions and focusing on long-term patient capital allows legacy groups to build enduring capabilities in sectors like aerospace and deep tech that require multi-decade horizons.
What to Watch Next
According to panel discussions, family offices are projected to become one of India’s largest sources of patient capital for deep technology investments over the next two decades. Additionally, business families are anticipated to continually update their family constitutions and governance models to manage increasingly complex market dynamics and seamless leadership transitions across generations.
Frequently Asked Questions
What was the main focus of the panel at the ET Family Business Awards?
The panel focused on how family-owned businesses in India can retain their entrepreneurial edge while institutionalizing company culture, balancing legacy with innovation, and managing capital allocation and succession planning.
Why are family offices becoming more important for Indian business families?
Family offices allow business families to make high-risk, long-term bets on startups and frontier technologies without diluting the core focus of their public listed companies, providing vital patient capital to emerging sectors.
How does Godrej measure and approach innovation?
Godrej focuses on calibrated risk-taking, strengthening manufacturing depth, building engineering capabilities, and forming startup partnerships, rather than focusing purely on short-term research spending or venture-style returns.
Source: Economic Times panel discussion on ‘Family Business: Retaining Entrepreneurial Edge and Institutionalising Culture’ at the ET Family Business Awards.