The evolution of the ownership structure is essential to navigate the challenges thrown by the dynamic environment, and its implications extend beyond financial performance. It influences firm strategies, value, dividend policy, corporate governance, corporate social responsibility, environmental sustainability and industry dynamics. This article looks at some factors that have influenced ownership structures in long-lasting companies.
The Great Family Sagas
Family ownership has been a prevalent characteristic of many long-standing Indian companies. Many of them have surpassed the century mark and, yet, have retained family ownership, symbolising their resilience and commitment to legacy despite the challenges faced during inter-generational ownership and succession transitions.
The ownership structure has evolved from individual to a holding company or trust for reasons such as separating ownership and management, facilitating succession planning, protecting family assets, optimising taxes and enabling business expansion. These transitions are driven by a desire to ensure long-term sustainability, enhance governance practices and secure the family’s wealth and legacy in the evolving business landscape.
For example, Bajaj Group transitioned from individual family ownership to a holding company structure with Bajaj Holdings & Investment Limited (BHIL) as the apex holding company. This restructuring facilitated a more streamlined approach to managing the diverse businesses and enhanced corporate governance.
هذه القصة مأخوذة من طبعة August 2023 من Outlook Business.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 2023 من Outlook Business.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
SHANKAR PRASAD
C'EST LA VIE - MY FAVOURITE
Star Plus
Actor Keerthy Suresh's talents extend far beyond the silver screen. In a chat with Prachi Khanna, she talks about her growing interest in the world of investments - from real estate to tech to co-owning a cricket team
Shelter From the Storm
Taking care of 500-plus homeless was only the first of the challenges; the 24-year-old social worker has done more since
Saying No to Jugaad
In India, people often rely on a quick-fix approach to manage the daily challenges of taking insulin shots. But a Gen-Z innovator has other ideas
Green Skills Champion
An unexpected career choice was the beginning of efforts to demystify the conversation around climate change and raise awareness
Force of Change
An educator's journey that started in the municipal schools of Andheri West is helping bridge the learning gap among young students
An Appetite for Health
The 'food pharmer' has taken on some of the biggest names in the FMCG sector. His mission: to get consumers to read product labels
More Than Medals
India's success at the Paris Paralympics can inspire a new era of inclusivity
Checkmate
A new generation of chess elite, backed by early mentorship and building on the wins of the previous generation, is cementing India's place at the top
On A Strong Wicket
Team India has had a mixed month but a good year. This was the year Rohit Sharma and his boys brought the T20 World Cup back home