FAMILY
BUSINESSES
ENVISIONING GROWTH ALONG
THE KNOWLEDGE CURVE

Whitepaper | November 2013
Enayet Kabir, Vice President

About the Whitepaper
Family businesses usually appear to be a motley crowd, having varying s...
Contents
1

2

4

Introduction

Approach and Research
Methodology

Snapshot of Indian Family
Businesses

7

9

10

The Nee...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

Introduction
The past decade was an inter...
Approach and Research
Methodology
Our Definition of a Family Business
A family business is one wherein there is direct inv...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

Age of Respondents

Exhibit 1

Exhibit 2
...
Snapshot of Indian Family
Businesses
Over the course of our research, we also tried to discover how Indian family business...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

•	Rooted to tradition: Tradition and comm...
Challenges to Family Businesses as ranked by Promoters and Professionals

Exhibit 8

Challenges ranked by promoters

Most ...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

The Need for Professional
Education in Fa...
Most family business programs offered in India tend to focus on the owners of family businesses and accord less attention
...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

Way Forward
Management programs for famil...
Conclusion
While the latest round of reforms suggested by the government may be cause for optimism, the overall state of I...
November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve

About
Technopak
India’s leading managemen...
Our Other Divisions
Retail, Consumer Products & E-tailing
Technopak aids retailers and consumer product companies in formu...
For further dialogue, please contact:

Enayet Kabir
Vice President
E-mail: enayet.kabir@technopak.com
Aurobindo Saxena
Ass...
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Family businesses envisioning growth along the knowledge curve, nov 2013

  1. 1. FAMILY BUSINESSES ENVISIONING GROWTH ALONG THE KNOWLEDGE CURVE Whitepaper | November 2013
  2. 2. Enayet Kabir, Vice President About the Whitepaper Family businesses usually appear to be a motley crowd, having varying sizes and seeming to be at different stages of evolution; with many ways of doing business and with shifting worldviews. While establishing rules of thumb about family businesses can be a hazardous exercise, there is a rather obvious need for education for the progression of the entire family business ecosystem along the knowledge curve. Indeed, the need-gap in terms of professional programs, consulting, and hand-holding, as spelt out by family business owners and professionals alike, is considerable, albeit with dissimilar focus areas for owners as compared to advisors. There is also the associated requirement that such evolution should translate into systemic changes through the setting-up of advocacy bodies and even institutionalizing the roles essayed by family business advisors. This Whitepaper is an excerpt of our research into assessing the need for learning as a way towards growth, from the perspective of the family business ecosystem. Education Division Services Business Strategy Assisting in developing value-creating strategies based on consumer insights, competition mapping, international benchmarking, and client capabilities • Corporate Strategy • Organic and Inorganic Growth Strategy • Financial and Operational Modeling • Marketing Strategy Implementation Leveraging operations and industry expertise to ‘commission’ the ‘concept’ on a turnkey basis • Project Management and Program Co-ordination • Support for setting up Infrastructure • Support for kick-starting Business Operations Partnerships Identifying and creating national and international partnerships across segments of Education • Partnership Structuring • Due Diligence of Partners • Negotiations for JVs and Management Contracts Capital Advisory Supporting business strategy and execution with comprehensive capital advisory services • Due Diligence – Commercial • Mergers & Acquisitions • Fundraising Impact Assessment Assessment and Audit of running programs • Assessment of Schemes and Policies • Audit of Projects • Advisory on course to meet objectives
  3. 3. Contents 1 2 4 Introduction Approach and Research Methodology Snapshot of Indian Family Businesses 7 9 10 The Need for Professional Education in Family Businesses Way Forward Conclusion 10 How Technopak can help Family Businesses Authors: Enayet Kabir | Vice-President Aurobindo Saxena | Associate Director Anuj Kumar | Senior Consultant Aditi Pandey| Associate Consultant Design & Development: Arvind Sundriyal | Assistant Manager-Design 3
  4. 4. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve Introduction The past decade was an interesting time; at no other point in history did almost all the countries of the world, whether developed or developing, grow at an above-average rate 5%. Almost no country in the world was left behind in this unique growth, which was partly fuelled by cheap money. However, it is widely believed that this pace is not going to become a new normal, and economies which have not reformed and brought about fundamental internal improvements will find it difficult to sustain this growth. In the case of India, this hypothesis is being proven true. India’s globalized economy has, to a large measure, lost its sheen due to a steady deceleration in economic growth over the past several quarters. Some of these concerns are reflected in the depreciation of the rupee and the wane in job creation. There is widespread concern that the present sentiment is not going to improve unless there is a change in governance in India. In India, the relationship between the economy and family businesses is symbiotic; one cannot exist without the other. Family businesses in India comprise 80% of the total businesses and contribute 60% of the GDP. Given the globalized nature of today’s economy, international whims and swings influence India’s family businesses just as much as they influence India’s economy. Despite their size and contribution, family businesses often get ignored and underreported in mainstream business narratives. This Whitepaper thus aims to get into the minds of entrepreneurs and family businesses in India and appreciate their worldview. Another key objective is to understand the interlinking of professional business education with governance, quality of management, professionalization of business, and a progressive ecosystem. To aid this effort, our team travelled to 35 Indian cities and interviewed a number of family business owners, across several generations, as well as professionals in key roles within family businesses and those who actively serve family businesses, including personnel from the accounting, banking, legal, and private equity world. It is this team’s experience that enriches and informs this Whitepaper. 1
  5. 5. Approach and Research Methodology Our Definition of a Family Business A family business is one wherein there is direct involvement of two or more members of the same/extended family with a controlling stake in the company, and influence in its strategic, financial, and operational decisions. Our Definition of Professionals/Advisors in Family Businesses Family businesses are ensconced in an ecosystem built by a number of professionals who advise, or engage with families in their areas of expertise. The advisor can be an accountant, lawyer, financial planner, banker, or an executive coach. No matter to which field they belong, advisors often share a close relationship with promoters, who are increasingly becoming discerning about the people from whom they take advice. Research Methodology Indian family businesses have certain unique features which distinguish them from those in any other country. Dimensions like caste, region, and cohesiveness that typify Indian joint families foster a rather complex kind of family business. These dimensions, along with the sector of operation, the generation (of the family) by which a business is being managed and local microeconomic factors make Indian family businesses a rich subject for exploration. In order to capture accurately the myriad dimensions of Indian family businesses, we decided on a sampling frame that would map various regions in India to the corresponding, dominant business communities. This mapping exercise was further qualified using such variables as nature of industry (manufacturing and services), the generation managing the businesses (2nd, 3rd, etc.), and city type (Metro, Mini Metro, Tier I, Tier II, etc.). We included companies whose revenues are over INR 5 crore (USD 0.83 million), and which have been in operation for more than 5 years, from the sample. Besides interviewing family business promoters and professionals, we also interviewed bankers, lawyers, Private Equity professionals, Chartered Accountants, and academicians who have been actively involved with family businesses for at least the past 5 years. Most interviews were conducted face-to-face; only about 10% of the interviews were conducted telephonically. In the case of telephonic interviews, the interviewees were mailed the questionnaire along with a brief note on the purpose of the interview. The data collected from the interviews was analyzed using standard statistical tools. Respondent Profile: Family Business Owners From the randomly selected sample of 201 family business owners (FBOs), it was observed that most of them took control of their business at a very early stage of their life and were well-qualified. A glaring aspect that comes to the fore was the miniscule representation of women in managing family businesses. 2
  6. 6. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve Age of Respondents Exhibit 1 Exhibit 2 Gender of Respondents 6% >60 19% 50-60 Age(Yrs.) 23% 40-50 94% 6% Male 29% <30 Female 23% 30-40 Many FBOs take control of their business at an early age Source: Technopak Analysis Source: Technopak Analysis Educational Qualification of Respondents (Family Business Owners) Exhibit 3 45% 0.5% 1.5% Illiterate Upto 8th Std. 1.5% Upto 10th Std. 2.5% 2.5% Upto12th Std. Polytechnic 45% 1% U.G. P.G. Certification Source: Technopak Analysis Looking at the families themselves, it can be observed that a good number of these families stay as a joint family even today. Family Size of Respondents Exhibit 4 43% 32% 12% <5 5-10 6% 15-20 10-15 7% 20+ Source: Technopak Analysis Exhibit 5 Gender Distribution Family Business Advisors 89% 11% Male All the 55 family business advisors interviewed were found to be well-qualified, with most of them having postgraduate degrees. This randomly selected sample of advisors was again found to be male-dominated. Female Source: Technopak Analysis 3
  7. 7. Snapshot of Indian Family Businesses Over the course of our research, we also tried to discover how Indian family businesses compare with family businesses in the developed world. Contribution of Family Businesses to the World’s Economy Exhibit 6 Family Businesses in Fortune 500 Contribution to World’s GDP 35% 55% Source: Family Firm Institute, Businessweek In the US, family-owned firms dominate the economy in terms of their contribution to GDP and job creation. while in the UK, they generate 25% of the GDP (with a nearly 10% contribution to tax revenues), and employ 33% of the workforce. Exhibit 7 Contribution of Family Businesses to GDP Workforce in the Developed World vs. India , 65% 80% 63% USA 25% 33% 75% UK India % GDP Contribution by Family Businesses % Workforce Employed by Family Businesses Source: Family Firm Institute; Family Business data (University of Michigan-Flint); various media sources It is evident from Exhibits 6 and 7 that family businesses play a much more critical role in the Indian context than in the developed world. This difference between Indian family businesses and those in the developed world can be attributed to the following key factors: • Access to capital: Family businesses in the developed world have had easier access to capital for a much longer time due to well-developed financial markets. This access in turn affected the dilution of the family’s stake to an extent where families let go of the control of the business. This transition in ownership has had a profound effect on organizational design and culture. On the contrary, in India, capital was not easy to come by for most of the past century. This, coupled with the conservative mindset of the families, led to their greater control on the business. • Using the larger family as a resource pool: In India, the notion of family is different from that in the West. Indians have a broader definition of family and their families are typically larger in terms of the number of family members. Indian family businesses have shown a greater propensity to tap into family resources for managing the business. The flipside of this phenomenon is that, typically, Indian family businesses are less transparent compared to their Western counterparts. 4
  8. 8. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve • Rooted to tradition: Tradition and community have always played important roles in the way business is done in India. Business communities like the Marwaris or the Baniyas enjoyed the support of their community networks. There have always been unwritten rules on how to transact and many of these transactions have been based on trust. On the contrary, in developed countries, the importance of the community has not been significant. While there are differences between family businesses in India and in the West, there are similarities as well. It can be observed both in India and abroad that family business owners give a free hand to the professionals only while the market scenario is favorable and the company is growing. When the tide turns, the promoters take over the reins of the company once again. The recent instance of Proctor & Gamble (P&G) and Dell in the United States, and of Infosys and Wipro in India, are cases in point. Key Opportunities and Challenges Facing Indian Family Businesses Roughly half of all family businesses shut shop by the first generation itself. On the other hand, it is equally evident that family businesses form the bedrock of the Indian economy no matter which lens we use, e.g. contribution to the GDP, job creation, etc. This apparent contradiction only underlines the opportunities, as well as challenges, faced by Indian family businesses, which enjoy some key advantages unique to emerging economies, viz.: • Availability of talent: Among the BRICS nations, India has the youngest population. Currently, the age of 50% of Indians is below 25 years. On the other hand, the gross enrolment ratio in higher education has been steadily rising, with the government aiming to take it to 30%, by 2022. This will be an extremely positive outcome for businesses. The supply of a large number of qualified people should ideally create a situation wherein businesses will be able to choose the requisite staff, with the right kind of talent. • English-speaking workforce: A working knowledge of English, as possessed by the Indian workforce, is an advantage that businesses enjoy in the context of an increasingly globalized world. • Going global: Until a decade ago, Indian family businesses largely restricted themselves to the domestic arena. However, in recent times, there is a rising trend of investing in foreign companies. Family businesses today are looking at a global portfolio of businesses as a counter to domestic downturns or currency fluctuations. There has been a significant jump both in the number of foreign acquisitions by Indian companies as well as in the size of such acquisitions. • Cheap labor: India has one of the lowest average wages among emerging economies. It is further believed that wage rates in India will remain stable, increasing only in tandem with inflation, over the next decade or so. • Domestic consumption: This is going to be a key driver for growth in India. According to Technopak’s research, the expenditure on the top eight retail categories (viz. food & grocery, apparel, consumer durables & IT, jewelry & watches, pharmacy & wellness, furniture & furnishings, footwear, and others) will roughly double in the next decade. This presents a great opportunity for Indian family businesses. • Regulatory reforms: In recent years, there has been an increase in the concern about poor governance and crony capitalism. The overconfidence of the Indian elite about India’s growth has given way, and been replaced by cautious optimism. It is also believed that economic growth can be sustained if the government brings in a new generation of reforms. Infusion of Foreign Direct Investment (FDI) into the retail sector, allowing the operation of private pension funds in India, and opening up the higher education sector to foreign players are some of the pointers to the general direction of reforms. Challenges Faced by Family Businesses in India Technopak identified the top seven challenges faced by family businesses in India and asked promoters and professionals working in family businesses to rank those challenges. From this, it is seen that there is a high level of divergence in the worldviews of promoters and professionals. While the challenges were not ranked in the same order, there was a low degree of convergence within the three categories of challenges, viz. high, medium, and low. These challenges may also be categorized as internal and external ones. While external challenges may be addressed by reforms in the economy, internal challenges can be tackled by professional/academic intervention. Educating the families about managing their businesses may offset many key challenges like ad-hocism, promoting family members, or responsibility allocation. 5
  9. 9. Challenges to Family Businesses as ranked by Promoters and Professionals Exhibit 8 Challenges ranked by promoters Most Important Ideological Conflicts Responsibility Allocation Accountability Leadership Challenges ranked by professionals Most Important Ad-hocism Succession Planning Ad-hocism Least Important Accountability Responsibility Allocation Promoting Family Members Low Medium Leadership Promoting Family Members Least Important Ideological Conflicts Succession Planning High Source: Technopak Analysis Technopak also tried to identify key attributes and success factors for family businesses at different stages of their growth, through extensive discussions with promoters and professionals as well as academicians. From these, three classifications emerged, viz. small size companies (i.e. whose revenues do not exceed INR 100 crore), midsize companies (revenues between INR 100 crore and INR 500 crore), and large size companies (revenues exceeding INR 500 crore). Some of the other insights from our discussions are enumerated in Exhibit 9 below. The key success factors were identified via studying the best practices of the highest-performing companies in each of the above classifications. For example, in the case of small size companies, we looked at companies that have grown at a CAGR of 30% (year-on-year) or above. Exhibit 9 Size of the business Key Attributes and Success Factors at Different Stages of a Family Business’s Growth Key Attributes Key Success Factors • Preoccupation with operational aspects • Room for all family members; roles are not well-defined Small-cap • Little room for strategic thinking. Promoters have little resources and bandwidth to • Finding a niche take an outside view of their business • Focus on products and services • Centralized decision making • Focus on key revenue streams and • Typically, families are risk-averse and have low appetite for investing in new profitability opportunities • Focus on scaling up • Low dependence on processes; decisions are taken in an informal and ad hoc manner • Propensity to utilize family talent pool • Growth is the all important aspect for the family • Growth through new products and services mostly in adjacent areas • Strong and enlightened leadership to harness strategic resources and attract top talent • Realization that decision making needs to be process-driven and decentralized • Inducting institutional investors into the business for a larger resource pool and strategic guidance • Realization of the need for inducting high quality professionals • Separation of management and ownership • Realization that the role of the family needs to be strategic and well-defined • Creating a strategic roadmap after considering family aspirations and business needs • Family members dominate in playing a strategic/investor role • Strong leadership pipeline at various levels • Hunger for operational excellence, cost optimization, and best practices Mid-cap • Family’s shareholding in Indian businesses exceeds that in Western counterparts Large-cap • Have a quality professional talent pool and ability to hire top talent • Ability to go global for new markets, technology, brands, cheaper capital or natural resources • Diversification • Focus on innovation and R&D While there are both bearish and bullish predictions about India and its future, the reality will probably be somewhere in between. A vibrant capital market, robust growth in domestic consumption, a democratic political superstructure, the availability of young talent, and the resourcefulness of Indian family businesses make them the right candidate for growth. While there are a lot of positives favoring Indian family businesses, they cannot afford to be complacent and need to address their challenges proactively. 6
  10. 10. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve The Need for Professional Education in Family Businesses Family businesses have certain strengths that set them apart from other corporations. However, families need to be conscious about balancing the requirements of their business against their personal aspirations. Rapid changes in the environment, increasing competition from the global players, diminishing product lifecycles, and disruptive business models and technologies make it imperative that family businesses learn to harness their potential and expose themselves to strategic thinking. Our research brings out the fact that a majority of promoters and professionals are able to identify areas requiring attention, and will welcome such academic interventions that can solve these. Educational needs in the family business ecosystem may also be interpreted in other terms than academic intervention. As there is a lack of comprehensive understanding about several aspects of family businesses in India, we believe there is a need for developing a knowledge-based ecosystem wherein promoters, professionals, academicians, as well as policy makers can exchange their learning, best practices, and industry and sectorial inputs, which will benefit not only the businesses, but also inform policymaking. Educational Offerings in the Family Business Domain While the first business school in India, XLRI, was established in the year 1949, it took exactly half a century for B-schools to focus on family businesses. Narsee Monjee is a pioneer in this field and started a program on family business in 1999. Even today, only a handful of B-schools offer programs in family business. A snapshot of family business programs in India is as follows. Exhibit 10 Illustrative Programs in the Family Business Domain Offered by Top Indian Business Schools Name of the School Program Name Program Duration Program Fees* (INR) Target Audience Focus of the Programs Family Business Members (across generations) Issues specific to family businesses like succession, ownership control, and shareholder relationships are discussed to arrive at a strategic plan for the family’s future 5 lakhs SME and Family Business Entrepreneurs Understanding business Environment and developing business strategy 15 months 30 lakhs** Family Business Owners (younger generation) General management Post Graduate Program in Family Managed Business 18 months 9 lakhs Family Business Incumbents Preparing for the leadership role in family businesses Women Manager Program 12 months 1 lakh Family Business Women General management Owner Manager Program 12 months 2 lakhs Family Business Owners Taking businesses to the next level Symbiosis Institute of Business Management, Pune Post Graduate Diploma in Family Business 12 months 3 lakhs Family Business Incumbents/ Employees Preparing for the leadership role in family businesses Narsee Monjee Institute of Management Studies, Mumbai MBA (Entrepreneurship & Family Business) 24 months 14 lakhs Family Business Owners/ Managers Understanding the changing dynamics of competition and organizations Harvard Business School, Mumbai Managing Family Businesses for Generational Success – India Short-term (4 days) 2.4 lakhs Indian Institute of Management, Bangalore Management Program for Entrepreneurs and Family Businesses 9 months Indian School of Business, Hyderabad Management Program for Family Business SP Jain Institute of Management & Research, Mumbai Source: Various Institute Webpages 7
  11. 11. Most family business programs offered in India tend to focus on the owners of family businesses and accord less attention to the professionals and advisors who play a very important role in the ecosystem. In many developed economies, there are programs that are strictly available to professionals. Some such programs are enumerated below. Exhibit 11 Illustrative Programs Focused on Family Business Advisors/ Professionals in Global Business Schools Name of the School Program Name Sauder School of Business, Canada Family Enterprise Advisor Program Business Families Institute, Singapore Program for Advisors: Understanding Family Business Harvard Business School, USA Key Executives Program The Family Firm Institute, USA Certificate in Family Business Advising Program Duration Program Fees* (USD) Target Audience Focus of the Programs 12 months (10 courses, 2 days each) 13,960 Family Business Advisors Technical skills, along with the strategies and tools needed to incorporate social and human considerations as a trusted advisor; affiliation to Institute of Family Enterprise Advisors (Short-term) 2 days 1,920 Family Business Advisors & Private Bankers Comprehensive understanding of the functioning of, and issues confronting, family businesses 2 weeks 20,000 Senior Executives Integrating critical business functions in a unified strategy that drives innovation and growth 12 months 5,000 Family Business Advisors Family enterprise advising and consulting, and the myths, realities and trends relating to Family enterprises Source: Various Institute Webpages Need-Gaps Considering the demand for higher education in the family business ecosystem and the supply of programs, some clear need-gaps can be identified. These are: • Exclusive focus: Currently, the few institutions that offer family business programs offer them largely as a sideshow. There is not a single institution in India that has been set up to focus primarily on family businesses as is the case with institutions like The Family Firm Institute in the USA. • hort-term programs: Further, existing institutional programs are mainly long-term with few programs which are S short-term in nature. Our research underscores the need for short-term programs with a sharp focus on specific areas. • ocus on professionals/advisors: Most of the current offerings are targeted at the promoters of the family businesses. F There is very little on offer for professionals and advisors like accountants, lawyers, bankers, financial planners, therapists or coaches, who may need to augment their existing technical skills with a more sophisticated understanding of business families and the challenges unique to them. • ustomized programs: Our research underlines that the existing programs do not cater to sector-specific needs. C Additionally, there is a need for customization considering factors like the revenue of a company, which generation of the family is in charge, location, etc. 8
  12. 12. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve Way Forward Management programs for family businesses in India are relatively a new phenomenon. However, in recent years, several high profile business schools have begun offering these programs in various formats. At present, the total expenditure on such programs is around USD 10 million. However, it is believed that there will be a spurt in the availability of such programs in the years to come. Besides educational intervention in family businesses, at a structural level, there are some imperatives for the improvement of the quality of management in family businesses. These improvements would come about when all stakeholders play their part. Family Business Owners • Need for a family constitution: It has often been observed that promoters fail to strike a balance between family dynamics and business needs. The core values, codes of conduct, roles and responsibilities, etc. are often unwritten and informally communicated among family members. Such a lack of clear articulation often leads to family disputes, resulting in the overall downturn of the business. It is therefore felt that family businesses should, in response to this need, opt for education, which can play a critical role in creating awareness. The promoters should also be open to taking outside help of professional family business advisors in not only creating a family constitution but also implementing it effectively. • Need for professionalization: Family businesses face a major hurdle in attracting and retaining talent. It is perceived that promoters tend to reward loyalty over competency. Thus, only a set of ‘loyalists’ continue to stay with the organization after a period of time. Over time, this creates a vicious circle within the company whereby there can be a scarcity of talented people on board. Promoters’ objectivity in running the business is not only reflected in that business’s growth and profitability but also in the evolution of a long-term organizational culture. Our research suggests that academicians and executive coaches can play a very important role in grooming promoters. Again, promoters can also invest time furthering their education through structured programs focused on managing family businesses. • Need for advocacy bodies: Many family businesses often face a similar set of problems. However, there is little opportunity for sharing experiences or learning from these problems. We believe there is space for an advocacy that champions the cause of family businesses and works as a platform for sharing best practices and experiences from leaders and experts. This platform could also interface with various other bodies, including the government, to protect the interest of family businesses. Professionals/Advisors • Invest in family business management courses: It is observed that professionals advising the families get restricted to their area of expertise, e.g. Chartered Accountants for taxation, lawyers for legal matters, etc. In order to become a family business advisor, not only is strong domain knowledge needed but a great depth of experience across multiple disciplines is also required; the advisor must also possess high emotional intelligence in order to handle the complexity of inter-family relationships. Professionals should therefore undertake courses which are focused on providing family business advisory skillsets, e.g. helping a family business create its roadmap and constitution. Policymakers • Need for institutionalizing Family Business Advisors: The role of family advisors in developed economies is strictly defined. These are qualified professionals affiliated with statutory authorities for certain activities like developing family constitutions. There is much need for creating such a regulatory body in India, along the lines of, say, ICAI for Chartered Accountants. 9
  13. 13. Conclusion While the latest round of reforms suggested by the government may be cause for optimism, the overall state of India’s economy remains a cause of concern. Family businesses must therefore focus on innovation and creating a long-term strategic roadmap to not only buffet against the turbulent external environment but also streamline the transition from one generation to the other. Education can play a very important role, both in helping develop a keen understanding of the shifting landscape and in reconfiguring the business. Our research highlights the fact that most professionals are playing a transactional role in the management of family businesses. However, there can be an opportunity for professionals who evolve themselves through education to carve out a larger, strategic role for themselves. It is deeply felt that the time is ripe for policymakers to provide a regulatory framework conducive to the evolution of family business advisors in India. How Technopak can help Family Businesses Technopak understands and cares about your business. Our ongoing engagements with family businesses, along with our sustained research in this field, form a robust knowledge base which makes us the perfect partner on your journey to success and organizational growth. Our philosophy of working with our clients through the strategic planning as well as the implementation phase helps us drive the long-term value in your business. The key concerns facing family businesses coincide with some of our areas of expertise, viz.: Roadmap for family businesses: We assist in charting a trajectory for diversifying into new industries, creating new concepts and formats within the same industry, and broadening the product and service mix to optimize returns and mitigate risks. Professional development of family businesses: We chart out the journey along the knowledge curve through professional development plans and workshops for the family’s members as well as key professionals. CSR and sustainability: We help develop a sustainable corporate footprint which is synergistic with the ethos of the family as well as larger social needs. 10
  14. 14. November 2013 | Family Businesses: Envisioning Growth Along the Knowledge Curve About Technopak India’s leading management consulting firm with more than 20 years of experience in working with organizations across consumer goods and services. Founded on the principle of “concept to commissioning”, we partner our clients to identify their maximum-value opportunities, provide solutions to their key challenges and help them create a robust and high growth business models. We have the ability to be the strategic advisors with customized solution during the ideation phase, implementation guide through start-up and a trusted advisor overall. Drawing from the extensive experience of more than 150 professionals, Technopak focuses on five major divisions, which are Fashion (Textile & Apparel), Retail, Consumer Products & E-tailing, Education, Food & Agriculture, and Healthcare. Our key services are: Business Strategy: Assistance in developing value creating strategies based on consumer insights, competition mapping, international benchmarking and client capabilities Start-up Assistance: Leveraging operations and industry expertise to ‘commission the concept’ on turnkey basis Performance Enhancement: Operations, industry and management of change expertise to enhance the performance and value of client operations and businesses Capital Advisory: Supporting business strategy and execution with comprehensive capital advisory in our industries of focus Consumer Insights: Holistic consumer and shopper understanding applied to offer implementable business solutions 11
  15. 15. Our Other Divisions Retail, Consumer Products & E-tailing Technopak aids retailers and consumer product companies in formulating growth strategy and performance enhancement mandates. Over the past two decades, we have worked on various facets such as entry into the Indian market, development of new category, activation of new retail formats, channel development, product extension, region expansion etc. One key reason why Technopak is considered the industry leader is the relentless focus on the Indian Market. We help clients understand the market dynamics in India and help them arrive at the best method to grow business in India. Our Retail and Consumer product expertise helps gain a competitive edge by providing execution capabilities and corporate strategies. Fashion (Textile & Apparel) With almost 20 years of experience in delivering end-to-end solutions to the entire gamut of the textile industry, right from fibre to retailing, the Fashion division at Technopak assists the textile and apparel organizations in optimizing their profits through enhancement and expansion. Many leading Indian and international Textile manufacturers and Apparel brands have benefited from our offerings in the areas of business planning and strategy, apparel operations, supply chain management and strategic alliances. Our team consists of top calibre advisors who have worked closely with a diverse group of clients comprising textile manufacturers, apparel retailers, garment manufacturers and exporters, apparel sourcing organizations, trade promotion councils, industry associations, international development bodies, and financial institutions as well as central and state governments. Food Services & Agriculture Technopak’s Food Services & Agriculture team comprises of established domain experts who build and enhance the business performance of organizations which are either working in the segment or are willing to enter it. Our endto-end solutions are customized as per the business’s requirements and capabilities. We continuously strive to create strong industry relationships and work for a global footprint by delivering a wide range of services to organizations that operate or wish to operate in the Food and Agriculture sector, in India as well as internationally. Healthcare Our Healthcare team is dedicated to assisting healthcare clients manage their businesses and provide innovative solutions with focus on short-term as well as long-term results. Our expertise in the field of strategy development and implementation has allowed us to execute varied assignments across the entire healthcare spectrum, covering varied geographies. 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