Despite the radical changes both the local and global markets have gone through over the last decades, family companies still dominate the global economy: Not only are 80 percent of companies worldwide family-owned, they are also to a large extent still managed by members of the founding family. Not surprisingly, India is no exception.
The fast-changing business backdrop has also made succession planning – traditionally a difficult issue for family businesses – more crucial than ever. The liberalization of the Indian economy has unleashed globally competitive forces that are likely to reshape the business landscape. Those Indian family run and managed enterprises that have been extremely successful in the past will do well to recognize the importance of market forces and proactively implement action plans to ensure the future survival and growth of their organizations.
We at S.R. Dinodia & Co. understand this crucial need of traditional family owned businesses for succession planning ensuring tax efficiency.