India’s wealthy heirs favor family offices over traditional business roles
Young heirs of Indian business families are increasingly setting up family offices and investing in startups, while older generations urge them to run real-world enterprises.
India’s new generation of affluent heirs is opting for family offices and diversified investments rather than direct involvement in their legacy businesses. Sanghi, 42, oversees luxury real-estate projects in Dubai, a professional volleyball team and a $100 million family office after selling a majority stake in his cement business to Ambuja Cements Ltd., controlled by Gautam Adani. Veteran banker Raamdeo Agrawal cautions that younger family members should gain credibility by managing operating firms, echoing Kotak Mahindra Bank’s view that they are “taking the easy way out.”
Financial advisers report that many heirs seek advice on establishing family offices, citing boredom with factory work. Meanwhile, family-owned companies are exploring private-equity partnerships, with $18 billion in buyout and control deals from 2020 to 2025 involving such firms, according to EY India. Examples include the Manchanda family’s Homemade Baker’s, which sold a majority stake to Growtheum Capital Partners and plans a future IPO, and Dabur Group heir Gaurav Burman, who now runs a family-office investment vehicle.
Why it matters
The shift influences how India’s multibillion-dollar family wealth will be managed and invested in the future.
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