India continues to be a nurturing geographic environment for family businesses despite the tumult from the pandemic. India is home to 17 family businesses on the 2021 EY and University of St Gallen Family Business Index with combined revenues of $277 billion or ₹20,76,600 crore in 2021.

“This reflects the strength of the economy and the historic nature in which family businesses tend to grow in the country,” noted a statement by EY. India’s two largest family businesses, Reliance Industries and Aditya Birla Group are among the 20 largest family businesses in the Index.

KT Chandy, Corporate Tax and Regulatory Services Partner and Private Tax Co-Leader, EY India said, “Family-owned enterprises have shown incredible resilience through the Covid-19 pandemic, prioritising sustained workforces and pivoting when necessary to overcome new challenges.”

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These businesses are well-placed to continue their legacy, further diversifying their boards and bringing the next generation into leadership roles, he further said.

Age and women on board

“The average age of an Indian family business in the Index is 73 years,” the findings revealed. When it comes to board diversity, Indian family businesses give 21 per cent of board seats to family members, however only two per cent of women family members occupy board seats in 2021.

The average age of a board member is 62 years. About 65 per cent of the Indian family business appointed CEOs from the family itself, however, there were no women as CEOs. Overall, the world’s largest 500 family businesses generated $7.28 trillion or ₹5,45,75,000 crore in revenue, employing 24.1 million people across 45 jurisdictions, according to the index.

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The Index revealed how the largest family-owned businesses have responded to the recent turbulence in the global economy. “Despite the turmoil brought on by the Covid-19 pandemic, family-owned enterprises have managed to stay resilient,” it said.

One-third of featured family businesses are based in the Americas, with the US boasting the highest number of family businesses (119 or 24 per cent). These organisations contribute $2.48 trillion in revenue in the Americas, employing 6.4 million people. Several of the biggest private family-owned enterprises by revenue globally are located in the US.

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