Passing the baton and taking it: How tycoons do it

Passing the baton, knowing the right time to pass it, and knowing whether the scion is ready to accept it are some of the crucial questions that promoters will face. According to Ajay Piramal, chairman of the ₹52,120 crore Piramal Group, it is a decision that can never be forced.

“I think it is more important to know that you have to step aside and actually do it… My only advice is that you have to give the choice to your children, and ultimately, I believe that each one must do what they are their own internal passion is. If you are passionate about running your business, then you should do, but do not force the next generation that you have to do my business,” said the 69-year-old Piramal.

Today, his daughter Nandini Piramal is the chairperson of Piramal Pharma Ltd and son Anand Piramal is the executive director of Piramal Group.

The senior Piramal attended the Mint India Investment Summit along with his daughter, where duo spoke a session called “Passing the baton”.

Also read | Why Piramal wants to exit its decade-plus insurance ventures with Shriram

This discussion has become a moot point across sectors in India Inc., as promoters are looking at the next generation to not only take up the business but also expand into newer industries. Leadership styles in dealing with a multi-generation workforce becomes an integral question.

For instance, Piramal senior said his style is “getting people involved, giving them enough responsibilities, believing in young people and allowing them to make mistakes. I know I have made many mistakes and I continue to make them.”

For Nandini Piramal, the leadership style is a more structured approach.

“I tend to be very structured. I like lots of data and I like to understand and build a framework in my mind. But I think it is also about collaboration and trusting people who are experts in their area, because as businesses become more complex, there’s no way a generalist can really understand…” she noted.

She added that while she was not spiritual, she agreed with her father’s belief in a purpose in life. “I am someone who believes in the necessity of purpose and living your life according to personal values – integrity and trusteeship.”

Read this | Tough times ahead for NBFCs: Piramal’s Sridharan

In fact, she was not the only scion at the summit. Anant Goenka, son of RPG Group chairman Harsh Goenka, started his career with Hindustan Unilever Ltd. He went on to join construction engineering company KEC International. After working at ATMA India and Zensar Technologies, he joined RPG group company CEAT; in October 2023, he was appointed vice-chairman of RPG Group.

The 40-year-old Goenka reflected on his earlier days in the cement-to-tyre conglomerate when he was figuring out his own journey of becoming a leader. He worked in different firms and sectors before joining the conglomerate led by his father.

He credits his roles in different businesses both within the group and earlier in other firms as what helped him come out of “protective shell that many of us are brought up in and understanding a lot of the real India.”

During a discussion called “Leadership Lessons from a third-generation entrepreneur” Goenka spoke about his “many bosses”.

Also read | RPG Group in for a do-over as a scion takes charge

“I saw so many different types of leaders, some that were very empowering, some that really got into micro details and I think each and every experience was deep learning”.

Goenka was candid about how he gained confidence over the years as a leader. “I really got confidence in myself about 12-13 years later after I saw good success in Ceat. Till then, I was always doubting myself. I would have people who were far more senior than me reporting it to me. I would have the head of R&D, head of marketing, with 20-30 years’ experience. If they disagree with me, I would always doubt who is right, because I’m this kid as an MBA at 32-33, and you have a 50-year-old who has so many years. So, how do you balance that?”

Meanwhile, how does one realize which child gets which business? Ajay Piramal said while daughter was always interested in pharma, his son wanted to go into real estate. And how does one resolve a difference of opinions? Piramal said that since both his children have enough experience, if he differs with what they think, he may voice his opinion, but leave the final decision to them.

And read | Work-life balance and installing the right value systems are important, says Anant Goenka