Family Businesses in India need to change and attain pace with globalisation of technology, supply chain and management

1. (c) Atul Mehra, Tasty Dairy Specialities Limited
Transform your Family Business
into your Dream Company
- Atul Mehra, Tasty Dairy Specialties Limited
Email: atulmehra.tastydairy11@gmail.com

2. What is Family
Business?
• Family business is a corporation that is entirely owned and
managed by members of a single family.
• Family business play crucial role in economic development of
most of the countries.
• In country like India it paves way to various families to initiate
and bring up new ventures in country.
• Family business in India along with their development have
also concentrated towards welfare of general public by
investing on hospitals, educational institutions, construction of
roads etc.
• In case of family business as all the parties in family are
affected by loss incurred in company do not involve any
sought of conflict and difference in point of view arises they
try and solve it internally in the family ensuring business is not
affected by the same.
(c) Atul Mehra, Tasty Dairy Specialities Limited

3. Need for Change in
Family Business
model
• The rise of new
consumers around the
world
• You want to refinance or
fundraise for next big
move.
• You launch a new
product or service which
can help in much better
economic development of
the country.
• You expand into new
markets and create new
opportunities for people.
• You change suppliers or
technologies.
• To cope with unforeseen
circumstances.
(c) Atul Mehra, Tasty Dairy Specialities Limited

4. Family Values
in a Business?
Values can act as an effective driving factors in bad
times or during transition.
Values can act as “glue” for both business and family
success going forward.
When family-style values are extended into a business
they provide “strength” and continuity to help mediate
financial priorities and shape more people-focused
plans and actions.
Help make ownership and management succession
transitions a great opportunity for the next generation
to identify new and better opportunities and
strategies.
(c) Atul Mehra, Tasty Dairy Specialities Limited

5. 1. KEEP CORE VALUES ALIVE AND RELEVANT BECAUSE THAT IS WHY BUSINESS
WAS STARTED IN THE FIRST PLACE.
2. CUSTOMER RETENTION & RELATION. MAINTAIN THE PERSONAL
CONNECTION WITH CUSTOMER.
3. PARTNERSHIP, COLLABORATION & OUTSOURCING YOUR WORK WHICH
WILL SAVE TIME AND MONEY AND CREATE OPPORTUNITIES FOR OTHERS.
4. WASTE REDUCTION AND ENERGY EFFICIENCY AS AN ORGANISATION.
5. MAINTAIN WORKPLACE ENVIRONMENT. IT SHOULD BE EMPLOYEE’S
SECOND HOME. THIS BUILDS THE EMOTIONAL CONNECT OF AN EMPLOYEE
FOR THE COMPANY AND PRODUCE BETTER OUTCOMES.
6. TRAIN FAMILY SUCCESSOR WELL AND INCULCATE THE IMPORTANCE OF
FAMILY BUSINESS, SOCIAL AND ECONOMIC DEVELOPMENT OF COUNTRY
BECAUSE OF THIS BUSINESS.
Sustainable
Growth of
family
business
(c) Atul Mehra, Tasty Dairy Specialities Limited

6. The formula
for sustainable
growth rate is:
SGR = Retention Ratio X Return on Equity
where: Retention Ratio = 1 - dividend payout
ratio and Return on Equity = Net Income/Total
Shareholder's Equity
The retention ratio is the flip side of the dividend
payout ratio.
If the firm pays out 20% of its earnings in
dividends, then its retention ratio is 80%. The
Return on Equity (ROE) is what the firm earns on
the shareholder's investment in the firm. Multiply
the two together, and you have sustainable
growth rate.
(c) Atul Mehra, Tasty Dairy Specialities Limited

7. Talent
Management
& Succession
Planning
(c) Atul Mehra, Tasty Dairy Specialities Limited

8. For Internal Succession:
• Start Early – By engaging and developing successor’s interest in family business and plan
business succession on those grounds.
• Set expectations, philosophy, and values upfront so that transition of business in hands of
successor is smooth.
• Understand individual and collective aspirations of company and successor.
• Develop the successor’s capabilities to think about society, welfare of it’s employees, socio-
economic development of the country and importance of family business.
For External Support:
• Motivate the best employees and foster their support.
• Ask departing leaders to leave but not disappear. Stating that means, he should be readily
available to help the new leaders.
• Build credibility through a phased transition of external leader within the organisation because
that person knows the industry and company well.
(c) Atul Mehra, Tasty Dairy Specialities Limited

9. Digital &
Technology as
an enabler
Automation –
Efficiency and
Productivity
Streamlined
operations
Enhanced Engagement
and Experience for
customer.
Digital Transformation:
Data Security
Better Outreach
Increased Storage
Data Insights
Understanding
customers from past
data captured
(c) Atul Mehra, Tasty Dairy Specialities Limited

10. How to
choose next
company
technology
• How efficient are your current operations?
• Are there any bottlenecks which cause problems?
• Are staff getting stuck on less important tasks?
• Are you duplicating effort between different
departments?
• Are there ways of working faster or tasks that could
be automated?
• Is your current technology going out of date or
causing compatibility issues?
• Are your business needs or processes likely to
change in the near future?
(c) Atul Mehra, Tasty Dairy Specialities Limited

11. Key Takeaways
• Start business succession planning early by
training your successor & Involve your family in
business succession planning discussions.
• Invest in technology and digital:
• Will increase your outreach
• Provide better insights and solutions based
upon data
• Increase efficiency
• Decrease your expenditure
(c) Atul Mehra, Tasty Dairy Specialities Limited