How Second-gen Entrepreneurs Are Revolutionising Family Businesses
"It is the younger generation, whose fresh ideas and bold strategies help in transforming these enterprises into modern powerhouses," writes Abhay Ojha
When we think of family businesses, tradition and legacy often come to mind. Yet, in life and everything else, it is not tradition but change that drives growth and innovation. The truth is that family businesses that fail to expand and innovate risk being left behind in a rapidly changing market. So, how does a business keep up with evolving trends and consumer needs?
It is the younger generation, whose fresh ideas and bold strategies help in transforming these enterprises into modern powerhouses. Take the case of second-generation entrepreneurs like Dilip Shanghvi at Sun Pharma and Nadia Chauhan at Parle Agro. They did not just continue the work of their parents; they reshaped their businesses and, in some cases, created empires.
Bolder Decisions, Broader Horizons
Dilip Shanghvi did not stop at running his father’s wholesale medicine shop in Kolkata. No, his vision was far grander. With just Rs 10,000, he founded the drug manufacturing company Sun Pharma in 1983, and through his leadership, it became the fifth-largest generic drug maker in the world, acquiring companies like Ranbaxy in deals worth billions.
Despite Shanghvi not having formal training in pharmaceuticals, he decided to take the plunge. His journey reveals the undeniable advantage second-generation entrepreneurs have—boldness.
While the first generation may have built a solid foundation, the second generation comes in audacious perspectives and a global outlook. This was also seen with Dilip’s son, Aalok whose international vision expanded Sun Pharma’s reach to over 80 countries, keeping it competitive in a fast-evolving market.
But not all second-generation leaders take the same approach.
Nadia Chauhan, for example, did not rely solely on her family’s flagship product, Frooti. She recognised that to grow, Parle Agro needed to diversify. Under her leadership, they launched new products like Appy Fizz and Baileys water, turning Parle into a Rs 8,000 crore empire as of 2022-23.
It is this kind of foresight and refusal to rest on the laurels of past success that sets second-generation entrepreneurs apart. And this is not limited to mega-brands like Sun Pharma or Parle Agro.
Kanav Aggarwal of the Jaycee Group successfully expanded his family’s multiple businesses including bike dealerships and tractor equipment manufacturing, registering 20 per cent growth per month. Their bike dealerships went from selling 60 to 250 units per month through modern marketing techniques. His company boasts of a Rs 25 crore turnover now.
Balance Between Tradition And Innovation
One of the most powerful aspects of second-generation leadership is the balance they maintain between respecting he values of the family business and introducing global appeal.
Kishan Jain of Goldmedal Electricals took his family’s modest trading business and expanded it into large-scale manufacturing, propelling the company to compete with giants like Panasonic and Legrand.
By professionalising the business, implementing new technologies, and strategically entering large projects like Mumbai International Airport, he was able to turn a small shop into a Rs 1,400 crore industry player. Rohan and Prakshi Sharma, the brother-sister duo behind RK Jewellers, followed a similar path. By taking their family’s jewellery business internationally and building a global customer base, they turned it into a Rs 32 crore enterprise.
The Legacy Must Carry On
Their success underscores how the younger generation’s fresh approach—focused on modern branding, international reach, and niche markets—can bring family businesses into the global arena.
These young entrepreneurs are not just inheriting a family business; they are transforming it. They are not just maintaining the family legacy; they are expanding and rethinking it, making it bigger and better. So, how did these second-generation entrepreneurs fare even better than their predecessors? Involvement at an early age.
It is fair to assume second-generation entrepreneurs spent a lot of time learning about the company and observing all its intricate workings while they were growing up. This is why by the time they were in line for succession, they felt confident enough to take over the reins. The success stories of second-generation Indian entrepreneurs demonstrate one thing clearly: family businesses thrive, not just survive, when the next generation takes over.
In an increasingly competitive market, family businesses must harness the bold vision and innovative spirit of the younger generation. Empowering them is not just a smart choice—it is the only choice if these businesses want to stay relevant and competitive in the future.
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