Businesses like the Tata Group and Rolex are shining examples of how family-run companies can adopt unique structures to thrive across generations, said Jamshyd Godrej, Chairman of CII – Sorabji Green Business Centre and CMD of Godrej & Boyce.
He believes that there is a growing role for every next generation in family businesses. “The next generation is always smarter than the previous one, and their contribution will be enormous,” he told NDTV Profit in an exclusive interview, pointing out that younger family members can easily gain the experience they need through modern approaches.
He said that the Tata Group has a distinct model, where a trust owns the parent company, Tata Sons, which controls the entire group. "The Tata Group is a very good example of not necessarily being a typical family-owned business," Godrej said.
The Tata founders gave their shares to charity, and now it's the Tata Trusts that own Tata Sons, which owns the rest of the group, he explained.
This setup, according to Godrej, sets Tata apart from traditional family-run businesses in India, where direct family control is common. He believes that such trust-based models, like Tata's and Rolex's—both structured for long-term sustainability—can inspire other family businesses globally.
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Jamshyd N Godrej, Managing Director and Chairman of Godrej and Boyce Co. Ltd. (Source: Company)
Jamshyd GodrejRolex is actually owned by a foundation. There’s no reason why this idea can’t be replicated elsewhere.
Godrej also urged businesses to explore sustainable models, especially as most companies, particularly small and medium enterprises, remain family-owned. "There are many models out there, and they can all coexist," he said.
This comes following the passing of the iconic Indian business leader, Ratan Tata, who led the Tata Group from 1991 to 2012, leaving behind a monumental legacy. Under his visionary leadership, the Tata Group expanded globally with strategic acquisitions like Tetley, Jaguar Land Rover, and Corus, and witnessed tremendous growth in sectors such as IT, telecom, and hospitality.
CII Chair Jamshyd Godrej In Talk With NDTV Profit|Watch
Current Growth Rate Can Peak Up To 10–12%, Says Jamshyd Godrej—NDTV Profit Exclusive. Read more on Business by NDTV Profit.