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Time to celebrate businesses that have enhanced stakeholder value

Let the numbers do the talking: Family-run businesses have generated 14% annual average share price return since 2006, compared with 6% for non-family firms in India, as per Credit Suisse’s Family 1000 in 2018 report.

ET Bureau|
Last Updated: Jan 21, 2020, 08.14 AM IST
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The Economic Times Family Business Awards is presented by RP-Sanjiv Goenka Group.
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MUMBAI: The Indian business landscape is built on the foundation of family-run businesses that have weathered generational shifts, socio-political glasnost and business cycles to create immense shareholder value.

Let the numbers do the talking: Family-run businesses have generated 14% annual average share price return since 2006, compared with 6% for non-family firms in India, as per Credit Suisse’s Family 1000 in 2018 report.

Ever so often, the churn throws up new champions. Sunil Mittal, a first generation businessman now oversees a global telecom empire that spans continents. The Chudgars of Ahmedabad became a global generics powerhouse, buying assets and brands to reach $1 billion in sales in 2016. The Rahejas of Mumbai have shown that real estate, too, can be accretive while the Shroffs of UPL are the prime challenger to the four biggest agrochemical giants in the world.

Down south, the Murugappas branched into and grew their financial services business under Cholamandalam, and the Goenkas and Agarwal family of Kolkata have shown that traditional values can still win the race even in cut-throat FMCG segments.

Globally, India ranks third in terms of the number of familyrun firms, after China and the US, says Credit Suisse. A look at their performance would show that more than 50% of the top 30 family-run firms in Asia are from India. “Regulatory changes are getting family businesses to bring in order and professionalise the business, and disruptive technology is pushing them to transform,” feels Ganesh Raju K, Partner PwC India. “Familyowned businesses, around the world, have a vision to create wealth and value not only for their own gen-next but also for the society at large,” feels Sonu Bhasin, ET columnist and founder of FAB – Families And Business.

For the last three years, we, at the The Economic Times, have been celebrating them and their secret sauce. The 2020 edition of ET’s Family Business Awards will be bigger and bolder.

To start with, there will be 11 categories, including three brand new ones. The Sustainability Champion will recognise family businesses for implementing strong environmental, social and sustainability, and governance (ESG) norms into business practices. The New Venture award is for a publicly listed family business which has moved into a new category or business vertical. Finally, a company that has faced adversity and successfully bounced back will be given the Business Turnaround award.

The top award – Family Business of the Year –will be awarded in three categories based on turnover, since the dynamics for small, medium and large enterprises are very different. There’s also awards for the most promising Gen Next Leader, Global Visionary and Woman Business Leader.

The Economic Times Family Business Awards is presented by RP-Sanjiv Goenka Group, and the knowledge partner is Grant Thornton India. The nomination forms are available at www.etfbawards.com.
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