Tanya Krishna writes about how the entrepreneurial journey of one generation is taken ahead to the next level by the fresh crop of the family with the infusion of ideas, technologies and experimentation
India, since ages, has been known for large, closely tied families and the prevalence of family-run businesses. However, according to a survey, even if around 90% of Indian businesses are family-owned, less than 30% gets passed on to the second generation and a meagre 10% or even less makes its transition to the third generation. While we may assume that these second generation business inheritors are of course born with a silver spoon in their mouths, the assumptions are undoubtedly bereft of many facts that we may not be aware of. The charisma and capabilities of the first generation, which are often the key drivers of the early development of the business, may impose great pressure on the second generation.
Finding Fresh Horizons
Samir Modi is the acting managing director of one of India’s leading beauty brands today, Colorbar. He is the younger son of business conglomerate K K Modi. Samir has been instrumental in launching various new initiatives for the Modi Group, including Modicare, Colorbar Cosmetics and Twenty Four Seven Retail Stores. “I started with just four employees working with me in Modicare. I pitched the idea of my beauty brand to my father, who flatly rejected it. I had to persuade these four persons and we decided to test launch in Chandigarh with 14 nail polishes and lipsticks,” recalls Samir.
Today, after 12 years, Colorbar has grown from 28 products to over 900, has started expanding overseas even as its current presence in Dubai and Abu Dhabi has grown at a CAGR of over 40% in the last five years. Says Samir: “My family calls me Mr. Mom as I know more about make-up than most women around. I have been surrounded by women all my life – first my mother and sister and then my wife and two beautiful daughters. They have taught me innumerable things which have helped me throughout my journey.” He advises the future generation to churn out all kinds of ideas for starting something on one’s own rather than rebuilding the earlier generation’s already established idea.
Playing as a Team
Samantha Kochhar is the managing director of Blossom Kochhar Group of Companies, which was started as Aroma Magic by her mother, Blossom Kochhar, and later joined by her father, late Col. V Kochhar. Says Samantha: “The first generation obviously had the toughest job of building the brand from the scratch. When I took over, it was mainly about consolidation. Today, we are not just into manufacturing but also into salon and services business, retail, etc. The next generation, that is, my son has also entered the business and is handling e-commerce retail. We have taken the company towards being more technologically-driven.” Acknowledging the fact that family-run business can become troublesome if left to the whims and fancies of the owners, Samantha believes that “every person should work in with his or her expertise without trying to overpower the other” and gives importance to working in a team and structure to such extent that the family becomes redundant.
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