He was speaking here yesterday at a conference on “Evolving Regulatory Landscape & its Compliance by Family Owned Businesses” organized jointly by the Indian Chamber of Commerce (ICC) and BDO India. He elaborated on family owned business models and shared his personal experiences of expanding business in the North East.
Touching upon the issue of succession planning and trust formation in family owned business, Mr Sethi opined that the new generation has a very strategic and innovative bent of mind. Ravi Todi, Managing Director, Shrachi Group shared his personal journey into entrepreneurship– from starting NBFC business in 1991 to merger with Magma Fincorp in 2006. He discussed Inheritance Tax in Indian geographical context, highlighting the differences between family owned businesses in Eastern and Western part of India.
He spoke of the importance of modus operandi in the introduction of Inheritance Tax and categorically mentioned that the tax, if introduced, can adversely affect a lot of family businesses in the country.
Mr. Udit Todi, Senior Vice-President (Marketing), Lux Industries discussed succession planning for leadership of businesses. He felt that the process of transition from the old to the new generation should be smooth and effective, as lack of succession plan can put the future success of a business at risk. He also highlighted the importance of an open discussion between the old and new generations of a family to enable free mixing of ideas. He was of the opinion that an objective, professional management is essential for the family owned businesses to succeed in the long run.
Mr. Atul Tantia, Executive Director & CFO, GPT Infra projects felt that Inheritance Tax is unlikely to be introduced as it will have a negative effect on small and medium income families in a diverse country like India.
Mr. Laxmi Narayan Mandana, CFO, JIS Group talked on the uniqueness of family owned businesses, in the open house session. Touching upon the issue of compliance cost, he argued that compliance with all laws and best practices cannot be by choice but has to be the sine qua non of any family business.
Mr. Milind Kothari, National Managing Partner, BDO India highlighted the need for empowering members in a family owned business. He said a lot of such businesses in Europe and East Africa have flourished due to smooth succession plans.
Mr. Prashant Sharma, Managing Director, Charnock Hospital discussed the role of Indian Chamber of Commerce in promoting business in India.
Mr. Stephen Darley, CEO Asia Pacific, BDO, LLB in his welcome address touched upon the activities of BDO India and discussed the recent changes in tax structure, GST reform & IBC measures. He urged the family businesses to prepare for the upcoming regulatory changes.
The program was also attended by Mr. Sohrab Bararia, Associate Partner, Indirect Tax, BDO India, Mr. Shekhar Bhartia, Partner, Business Advisory Service, BDO India among others.