Family business entrepreneurs

NEW BUSINESS FAMILIES Presented by: Fenella Andrade Masters in European Studies and Management (MESM) 2010-2012 Manipal Centre for European Studies Manipal University, Karnataka, India Source: Business Today April 17,2011

GMR Group Founder: Grandhi Mallikarjuna Rao, Andhra Pradesh Age: 60 Main Companies: GMR Infrastructure GMR Industires Sons: G.B.S Raju – Chairman, Corporate and International Business Kiran K. Grandhi – Chairman, Airports Son in law: Srinivas Bommidala - Chairman Urban Infrastructure and Highways Total turnover: Rs 4,560 crore (Rs 25,000 crore assets)

Grew up in Ranjam village, 120 km northeast of Vishakapatnam Graduate in Mechanical Engineering from Andhra University Worked for a Public Works Department (PWD) executive engineer 1973 – worked for a brief period at a paper mill “ My life can be split into five parts: student, leader, trader, manufacturer, banker and infrastructure developer,” says Rao 1978 – set up his first manufacturing operation – a jute unit in Ranjam, and over the Licence Raj years, he set up 28 units in steel rolling, ferro alloys, sugar and alcohol, among others Due to prohibition in AP under the N.T. Rama Rao government in 1983, he was forced to look outside the state Ended up family controlling a bank – ING Vysya, the country’s second private power generation company, several road projects and eventually airports

The Management Family council: Son-in-law Srinivas Bommidala and sons Kiran K. Grandhi and G.B.S. Raju as members Their motto: Run the family like a business and run the business like a family Family members are involved in the business Some of their group’s highways and urban infrastructure business, Grandhi airports, and Raju International business, won’t be in operations after Rao plans to retire in 10 yrs – after which they will either work as a three person unit or rotate chairmanship Regular meetings which include women too The circle is not complete without family governance

ADANI Group Founder: Gautam Shantilal Adani, Ahmedabad Age: 48 Main Companies: Adani Enterprises Adani Power Adani Wilmer Mundra Port Wife: Priti manages Adani Foundation Son: Karan handles ports business Brother: Rajesh oversees the trading business Nephew: Pranav looks after agri business Total turnover: Rs 28,000 crore in 2009/10

1980 – teenaged Adani travelled from Ahmedabad to Mumbai to dabble in diamond business He initially honed his skills as a diamond sorter, observed how trade was being carried out and soon graduated to diamond trading 1988 – started Adani Exports, a partnership trading firm in Ahmadabad dealing in agricultural products, dye intermediates and plastic products with a seed capital of Rs 5 lakh His vision is to have an integrated operation for his group – from coal mining to power generation The group mines the coal, transports it by rail or water using its own tracks, jetty and vessels, and unloads it at its own port. “ There is no other integrated power company in India,” says Ravi Sharma, CEO of Adani Power Apart from Mundra port, plans of expanding its port presence in Goa, Hazira and Dahej

The group today chatters between 60 and 70 ships for its trading operations and they plan to buy 20 ships by 2020, two ships are already sailing The group is fast moving from being largely family run to being more professional driven All his businesses from power, port, oil and gas exploration to agriculture are manned by professionals He trusts and supports his core team and never bothers to intervene but is always kept in the loop Adani’s message to his team, “We should be the best in whatever we do.” He plans to expand his core team to implement his vision 2020 – achieving 200 million metric tonnes of cargo, 20,000 MW of power generation and 200 million metric tonnes of coal mining

DECCAN 360 / DECCAN CHARTERS LTD Founder: Capt. G.R. Gopinath Age: 59 Wife: Bhargavi runs a bakery venture, Bun World Daughters: Pallavi works for Deccan 360 Krithika is with Deccan Charters Total turnover: Rs 375 crore in 2009/10

The ex-Army officer’s entry into aviation came after he had tried at a series of business ventures in his native district – Hassan, Karnataka He reared cattle to sell milk, poultry farming, silkworm farming, motorcycle dealer, Udupi hotel owner, stockbroker, irrigation equipment dealer, agriculture consultant, politician and now finally an aviation entrepreneur His wife - equally successful entrepreneur - smaller scale, bakery in the upscale Malleshwaram neighbourhood of Bangalore – expanding 1997 – Capt. Gopinath and Capt. K.J. Samuel started with a single leased helicopter operating out of a small office on Bangalore’s Infantry road – grown into a mature business with a fleet of 13 choppers and 3 aircrafts Air Deccan would have passed into history but it did show how the low cost model was the way forward for the airline business

New start up – Deccan 360 – is pinning similar hopes on the growth potential India holds in the express logistics space Roped in Mukesh Ambani as a strategic investor He tweaked his management structure to demarcate the line between the owners and the managers, CEO of Deccan 360 report to the company’s board and not to him “ I have put in place a good corporate governance structure and have distanced myself from the management,’’ says Gopinath, who is its chairman Both his daughters have decided to join their father and Pallavi,29 who looks after Business Development at Air Deccan and Krithika,23 is employed at Deccan Charters Ltd Having placed his business in the hands of his trusted CEO’s, he uses his time to sew up big plans and give big surprises They also host Indian classical music concerts in their bungalow in Bangalore

MOSER BAER INDIA Founder: Deepak Puri, New Delhi Age: 70 Main Companies: Moser Baer India Wife: Nita heads the Administrative wing Son: Ratul, Executive Director Total turnover: Rs 5,500 crore in 2010/11

Hailing from a family of landlords Junior executive – oil company ESSO (Kolkata) Shalimar Paints – to master the art of management techniques, marketing tricks and to receive a firsthand experience before venturing into his own business 1964 – Metal industries in Kolkata, trading in aluminum wires and furniture. Two yrs later he moved into manufacturing Frequent strikes and deteriorating business environment forced him to migrate to Delhi Started Moser Baer India at first as a 51:49 joint venture with Switzerland based co. Moser Baer (time machines)

Technological changes: Death of cassette and video cassette – replaced by CD’s, floopy’s and Digital Versatile Discs (DVD’s) In three years the revenues shot up from Rs138.5 crore to Rs 1,585.6 crore. Net profits Rs 325.9 crore In 2003/04 Moser Baer India was the world’s second largest manufacturer By mid 2000’s, demand for CD’s and DVD’s too stopped rising Diversified into manufacturing solar panels Moser Baer Solar, a fully owned subsidiary of Moser Baer India – earned revenues of Rs 1,000 crore in 2009/10 Still has growth for flash storage but the big revenue growth will be in solar

BALAJI GROUP Founder: Jeetendra Kapoor, Punjab Age: 68 Main Companies: Balaji Telefilms Balaji Motion Pictures Wife: Shobha, Managing Director, Balaji Telefilms Daughter: Ekta, Joint MD, Balaji Telefilms Son: Tusshar, Executive Director, Balaji Motion Pictures Total turnover: Rs 170 crore

1990 – asked to produce a programme for the channel TV Asia Market research and family coaxing, took a plunge “ We were left with a lot of software but no slot to put it on air,” says Jeetendra Balaji Telefilms was born Ekta took over as Creative Director at 19 First break on Zee TV on paranormal activity, Mano Ya Na Mano Bull’s eye with Hum Paanch Then began the ‘K’ soaps that topped the charts for years – Kyunki Saas Bhi Kabhi Bahu Thi and Kahaani Ghar Ghar Ki Tie up with Star TV turned into a money spinner 2008 – cracks appeared between the partners, trends changed and ratings dipped Star took the ‘K’ soaps off the air

Revenues started crashing from Rs 95 crore in 2007/08 to Rs 4 lakh in 2008/09 Family realized the need for professionalism Appointed Puneet Kinara as CEO Promptly rose to prominence again, pulling off the two biggest sleeper hits of 2010 – Love, Sex and Dhoka and Once Upon a Time in Mumbai “ We want to emerge as a leading content player in television and movies in the next five to 10 years,” says Kinara “ The falling out with Star was a learning experience as it enables us to emerge as an entertainment powerhouse,” says MD Shobha

Rapidly turning technology in every field have increased business risk and the mortality rate of business families too Succession challenge Families today are aligned but the future cannot be predicted

Family business entrepreneurs

Related slideshows

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Family business entrepreneurs

Similar to Family business entrepreneurs (20)

More from Fenella Andrade

More from Fenella Andrade (13)

Recently uploaded

Recently uploaded (20)

Family business entrepreneurs