Farhad and Rati Forbes share their views on Family run businesses

For Indian business houses, particularly those that are family-run, it is important that they return to the roots, learn how their parents and grandparents ran the business, uphold the values their fathers and grandfathers lived by and contribute as much as their ancestors did to take the business forward, said M.V. Subbaiah, former chairman, Murugappa Group.

He was speaking at the Learning 360: Evolve programme conducted by the Coimbatore branch of Confederation of Indian Industry and Young Indians here on Friday.

There was a lot that remained to be discovered, appreciated and learnt, he added, referring to how sophisticated democracy was in villages during the Cola period. For instance, the person elected as the village headman could not hold the post for more than two terms and none of his relatives could find a place in any important body.

This was mentioned in the inscriptions at Uthiramerur (Kanchipuram district), he said.

In family-run businesses the training was as good as it could get and there was business discipline as well. Recalling how he was groomed in the traditional Chettiar style of business, Mr. Subbaiah said that he started of as a ‘Podiyan (peon), got promoted as ‘Athudal’, moved higher up as a ‘Kootali’, graduated to be a ‘Pangali’ and finally became the ‘Muthalali’ (master or owner).

The Chettiars had started this five-stage grooming business and perhaps he was the last to be get trained in that fashion, he added.

But, Mr. Subbaiah cautioned that in returning to roots and learning history, the business leaders must ensure that they read the real history and not what was handed to them, mostly by the British. For, they hardly ever talked about Indian strengths.

Farhad Forbes, Director, Forbes Marshall Limited, said that when family-run business houses think of expansion or scaling up operations, they must first answer why they need to grow, how much and what is the objective of that growth.

For, growth should not be an end to itself but a means to an end and the business houses must define that end.

Quoting German family-run business houses such as Staedtler, he said it was possible to compete globally and remain family run at the same time.

Rati Forbes, Director, Forbes Marshall Limited, spoke on philanthropy. Rohit Rajendran, Executive Director, Premier Spinning and Weaving Mills Limited, moderated the discussion.

Ref : The Hindu Paper, Aug 2015