1. MBA Family
Business

2. Indian family businesses have a long history, several of them following the regulations associated with the British Raj, witnessing the ’nationalization’ process, facing the challenges of a controlled economy during the 1950s to the 1970s and then transitioning to the liberalized era of the 1990s.

3. In the process, their resilience to the changing dynamics of the
Indian economy has strengthened.
On their part, they have contributed significantly to the economy through a wide production base and import substitution, besides giving consumers a wide choice.

4. However, managing family businesses have their own challenges:
Differing views of the younger and the older generations
The absence of well-defined succession plans
Ability to attract external staff and chart out their growth plan vis-à-vis members of the family
Managing diverse opinions of family members, and also external staff, in key decisions
Access to capital to help grow and evolve the business

5. Growth: The last fiscal
Performance and challenges
Growth: The last fiscal
The growth stories for Indian and global family businesses remained similar
in the last financial year with two-thirds of them experiencing sales growth.
The economic slowdown seems to be having less impact on their optimism
and growth plans. This probably comes from the fact that India is still
projected as one of the fastest growing economies besides China.

6. Growth aims: The next five years
The last financial year’s growth story has generated optimism for
further growth in the medium term, although more for India companies
than for the global ones.
Around 40% of Indian family businesses aspire to grow quickly and
aggressively against 15% of the global average, in the next five years.

7. Constant upgrading of technology, re-invention of businesses pushed by a relatively higher demand by consumers and an upward-looking economy may help these Indian companies meet their goals.
Besides, 49% of Indian family businesses aim to grow steadily. Only 9% of them are looking to consolidate their business and none foresee shrinking of their business.
The global average is comparatively more conservative with 70% aiming
to grow steadily, 13% looking at consolidation and 1% even expecting shrinkage in the next five years.
Further, 98% of Indian family businesses predicting growth are confident of achieving it.

8. Facing Challenges and devising ways to overcome them in critical

9. Internal Issues in the next
12 months

10. The key internal issues likely to be faced by family businesses in India and across the world in the next 12 months are mostly consistent, and include staff recruitment, company reorganization, business and product development, availability of finance, etc.

11. Key challenges in the medium term.
Our survey reveals that nearly half (48%) the respondents consider the need to continually innovate as a key challenge. This calls for higher investments in R&D, devising new business strategies and adapting to a changing environment.
The innovation imperative, however, is not restricted to India. Over two-thirds of the global average considered it to be a critical challenge too. The entrepreneurial sector has the agility in operations and the depth in ideas in order to create radical new solutions required for a vibrant economy.
Attracting the right talent (40% respondents) and retaining key staff (31% respondents) are other challenges that Indian family businesses consider important although not as much as their global counterparts.

12. Key Challenges in five years ‘time
Need to continually innovate
General economic situation
Attracting the right skills/talent
Complying with regulations
Price competition
Need to professionalize

13. Number of businesses competing Need for new technology
Retaining key staff
Number of businesses competing
Need for new technology
Containing costs
Increasingly International environment
Company succession planning
Suppliers/supply chain
Conflict between family members

14. Family Involvement and succession planning

15. Having in place professionals at senior and also at the board level of family businesses is not just the current accepted norm but also an ongoing trend both in India and globally.
Over three-fourth (77%) of family businesses surveyed in India have non-family members on their boards as against around two-thirds of the global average, although this is a declining trend within India.
Further , more than half (37%) the family businesses in India and an average of one-third of family businesses across the world, have non-family staff members who possess shares of family-run companies.

16. Lesser role for family members at
junior levels

17. According to our survey, Indian family businesses have lesser roles for family members at junior levels against the global average (35% in India versus the global average of 49%). On the other hand, Indian family enterprises, however, do have on board family members who possess company shares bur do not work for the company.
This is much more than their global counterparts (78% in India versus global average of 48%). More than 92% of global and Indian respondents revealed that they have family members mostly as senior executives rather than having them at junior levels.

18. Next Generation playing important roles
Pampering the next generation and the desire to employ them in the company once they complete their studies, that too at senior positions, is a common practice within Indian family businesses.
No wonder then , two in three family businesses in India (66%) have next-generation family members working for the business as against a global average of 55%. Moreover, 58% in India have next-generation family members working as senior executives within the company as against a global average of 43%.

19. Further, in India one in three (35%) of next-generation family members do not work for the companies but own company shares.
The global average, however, is more conservative with 23% family businesses having on board next-generation members who are not working for their business but, however, possess company shares.

20. The quest for digital and emerging global trends

21. POINTS TO MOVE FORWARD :
1 . A full fledged team for the entire process.
2 . Work to begin for registration of startups and technology incubators.
3 . The evangelization process of ACHARIYAN entrepreneurship saga should unfold at a rapid pace in all national and international websites.
4 . MD ji as a mentor for entrepreneurship should be positioned in all the relevant and pivotal website.
5 . A full time and committed program of startups and incubator cells should be started in every college.
6 . Promising candidates should be immediately identified and they should be assigned to mentors of international repute and also guided by our Chief mentor.

22. 7 . For schools promised students can be identified and they can be also assigned to the mentors of repute. 8 . Entrepreneurship programs will be conducted for college as well as school students. 9 . A short and pertinent thrust should be given to Bio-Technology , Food processing , Artificial intelligence, Health care, logistics program and education areas Programs with entrepreneurship celebrities within the age group of 30 should be conducted at important cities so that their charisma is transferred to the audience and thereby new aspiring entrepreneurship emerge on this sense. This program should also be conducted to all colleges An entrepreneurship summit or conclave should be conducted at ACHARIYA for the entire colleges at Puducherry, Cuddalore and Villupuram district. In that summit the application for startups and proposal submission can be triggered.

23. or 6 business proposals can be chosen and they can be signed under the ACHARIYA banner and can be mentored Contacts with venture capitalist will enhance the Achariyan brand image If one startup of us is funded by an angel investor and it hits the marketed successfully then we can start to fructify our goals An unique combination of startups technology incubators NSDC program and entrepreneurship program and evangelization programs will be a great source of marketing strength to the MBA( Entrepreneurship and Family Business) program.

24. ACHARIYA Group of World class Educational Institutions.
Angel Prime.
10,000 startup (a unit of NASSCOM)
Indian Angel Network.
Highly successful entrepreneurs in India and abroad are on our Board of Governors.
The board of Governors for the program are :
DR.J.ARAWINDHAN JI,
Chief Mentor,
ACHARIYA Group of World class
Educational Institutions.

25. Academic Delivery
The Academic delivery will not be through books or lectures which are conventional and will not serve any purpose, for this programme.
The candidates will be conducted a psychometric aptitude test. The is the first filtering process will be conducted by panel of experts and that initial proposal will be assessed by the panel and the candidate will be selected.
A personal interview will be conducted wherein the candidate will submit the initial proposal.
The duration of the course is for one year. It can also be finished within one year, the minimum time span for finishing is six months.
The admission process is round the clock throughout the year.

26. Mentoring Process:
When a candidate is chosen for this cause his portfolio or area of research should be assessed. Then his research proposal should be sent to a list of mentors who have specialized in this area.
Then that mentor should have an interaction with the student and then both the mentor and the mentee should come to a consensus on the following:
The Subject Topic
The Methodology of guidance
The Mentoring Process

27. Duties of the mentor:
After one month of the enrolment, the mentor should constitute a mentoring committee wherein the mentor and the mentee will jointly present to that committee will evaluate the progress of the project.
When the project reaches a final shape of a Business proposal then it is presented to the Board of Angel Investors. Once the funder comes forward for investing and once the agreement is signed the company registration starts.
Once the company proposal is accepted the company registration process is started, and when the CIN number comes and all corporate legal formalities are compiled with the company is floated with the following Board members.
The Achariya mentor-CMD
Mentee- Executive Director
Angel Investor- Finance Director
Independent Director
Under this a team has to be formed under the daily supervision of the Executive Director and the financial supervision of the Angel Investor as per the covenants of the companies Act 2013, to conduct the day to day affairs of the company and the Board will decide on important issues as peer the MOA and the AOA.

28. The share holding pattern has to be as following
CMD – %
Director – 20% (Madam)
Mentee – 20%
Angel Investor – 39%
The Angel Investor can bring in money both in the form of Equity and Debt.
Angel investing the options are as follows (Let us say after three
years)
Option A
The Angel Investor himself takes over the company after negotiating the share price.
Option B
The mentee / start-up investor takes over the company.
Option C
The CMD takes over the company and manages the operations.
Option D
At a later date the CMD sells the company to a new set of promoters, this is as per the sole discretion of the CMD.

29. Digital Support
It is a high time that we have solid digital support. The following are the
things be started with immediately with strong digital team with strict
deadline.
Launching of an appealing website with lot of clarity and information.
App Development
Digital Marketing
Instagram
Other new methodologies which have come from time to time. This process has to be taken on a war footing and a media team has to be formed to act immediately.
Other modes of digital marketing have also to be explored like facebook, twitter etc
The digital marketing exercise has to be very aggressive and FAR reaching to all the corners of India and the world.

30. PLACE OF LAUNCHING
The place of launching of this programme should be in the college campus & it should be well furnished with all modern amenities and it should have the ambience of an incubation lab and it would facilitate the startup students to consult & also discuss with their mentors Systems have to be installed or to the student a free laptop can be given as an incentive, if needed.
Regarding the usage of equipments for experiments by the startup students it is hereby stated that we can make tie-up with companies and also use the mentors with their contacts for usage of lab facilities in our initial stages. That is why the START-UP Exchange is going to be launched.
When the momentum picks up, then we will come to know that what type of startups are becoming popular and then we can make a judicious decisions of Capex for the enrichment of our incubator and incubating facilities.
We also have to make tie-up with IIT Research Park and for advanced research. This can be done hopefully with the help of leading mentors and Board of Governors.

31. PRICING OF THE PROGRAM
The maximum duration of the programme is 12 months.
The cost of the programme can be pegged at 12 Lakhs.
The candidate has the liberty to finish the programme within a minimum span of 6 months & a maximum span of 12months.
This 12 lakhs is refundable to the students on the following terms & conditions.
He should have successfully completed the conversion of the ideation process, into a tangible business proposal which is acceptable to the funding agencies namely, The Angel Investors.
Once, he is inducted into the Board of Director of his company he will be given shares worth Rs. 12 lakhs it would be refunded and also the extra value of the share commands at that point of time, would also be given. Apart from that there would be a share in the profits, salary, perquisites etc.
This is the unique pattern of attracting the candidate to join our programme and also at the same time of motivating him to come out successfully in a startup venture.

32. CONFERRING THE DEGREE
The degree will be conferred (PG Diploma, in management of Startups) once, the business proposal is accepted and the company is formed and when the candidate is inducted into the board.
On the day of the inauguration of the company the convocation will also be held and the degree will be conferred to the candidate.

33. ENCASHMENT OF TALENT
The programme is an unique programme wherein the minimum age limit to join this programme is 10 years and maximum age limit is 30 years.
This demographic age segmentation is based on the model like Vijay Tv Airtel Super Singer Junior & Senior.
For the seniors & juniors the same process can be held, and when a kid finds something sensational he will be inducted into the board as a minor with his parent as a legal guardian. That is the only difference.

34. Budgeted-Expenditure
Meeting Expenses
Board of Governors meeting
Board of Mentors meeting
Board of Angel Investors meeting
Meeting will be held in Chennai or Pondicherry

36. Option I. Revenue Collection for 50 students (I year) Revenue (50 students x 12L) = Rs. 6,00,00,000

37. Option II. Revenue Collection for 75 students Revenue (75 students x 12L) = Rs. 9,00,00,000 (II year)

38. Option III. Revenue Collection for 100 students
  Option III. Revenue Collection for 100 students Revenue (100 students x 12L) = Rs. 12,00,00,000 (III Year)

39. FULCRUM OF THE PROGRAMME
Board of Governors
Board of Mentors
Angel Investors

40. Board of Governors

41. Dr. J. Arawindhan
Chairman of the Board

42. Mr. Sudharshan Venu Mrs. Aparna Ram Mohan Miss. Akila Rajesh
Joint Managing Director
(TVS Motor Company India)
Mrs. Aparna Ram Mohan
Managing Director
(Sri Satwa Group)
Miss. Akila Rajesh
Executive Director
(TiE Chennai)

43. Mr. C.K. Ranganathan Mr. V.S Sriram Miss. Richa Kar Chairman
(Cavinkare Group of Companies)
Mr. V.S Sriram
Advisor/ Consultant
(Technology Services And Digital Business)
Miss. Richa Kar
Founder
(Zivame)

44. Mr. Vijay Shekhar Sharma Mr. Amit Jain Mr. Phanindra Sama
Founder & CEO
(Paytm)
Mr. Amit Jain
Founder
(Car Dekho)
Mr. Phanindra Sama
Founder
(Red bus)
Mr. Kishore Biyani
Founder
(Bigg Bazaar)
Mrs. Swathi Piramal
Founder
(Piramal Health Care)

45. Board of Mentors

67. Board of Angel Investors

68. 1. Mrs. Padmaja Ruparel
2. Mr. Balan Nair
3. ACCEL Partners
4. Sequoia Capital
5. Nexus Venture Partners
6. Kalaari capital
7. Blume Ventures
8. Chiratae Ventures
9. Venture East
10. Saif Partners
11. Matrix Partners
12. 3 one 4 Capital

69. Conclusion

70. It clearly shows that family businesses are not only on par with professionally run non-family businesses but they are also no less than their global counterparts.
On the contrary, they are equally, if not more, focused on growth, have a vision for the future, are high on culture and ethos, are open to fresh ideas both form the new generation as well as professionals and can withstand business and economic adversities.
Not jus that, they have the tendency to safeguard their employees during bad times.
With the overall improvement in the political and economic scenario in India and the revival globally, family businesses in India are bound to succeed.

71. Family businesses are a key component of economies around the world
Family businesses are a key component of economies around the world. While it is well-known that a family business can be an extremely successful business model, it is also acknowledged that they suffer from a higher rate of failure.
Though they deal with challenges that other businesses face, but unlike non-family-run companies, they also deal with family issues.
The biggest issue facing gamily businesses is that of succession. Succession has two dimensions.
Succession in ownership
Succession in management
Both of these need careful planning over a period of time. The transfer of ownership and managing the succession process is the most difficult challenge that family businesses encounter. In our experience, most families have no real plans for succession, which leaves the next generation unprepared for the challenges ahead.

72. We have developed mechanisms to assist families with the following:
Continuity planning
Succession Planning
Conflict Management
Family businesses must look holistically at both the family structure as well as the business model.

73. Thank you