42% of Indian Wealthy Families Lack Formal Succession Plans
Report reveals critical gaps in wealth transition strategies among India's affluent family enterprises.
1Succession Planning Status
A report by Grant Thornton Bharat and Entrust Family Office reveals that only one-third of Indian family enterprises possess a documented succession plan. Meanwhile, 42% of families have reached a broad agreement but have not yet formalized these arrangements. Additionally, 16% are currently discussing the process, while 6% view it as a low priority.
2Scope of the Study
Published on October 13, the joint study captures perspectives from family business leaders and wealth holders across multiple generations. The research encompasses families with wealth ranging from ₹100 crore to ₹10,000 crore. This data provides a comprehensive overview of how high-net-worth households in India approach the transfer of leadership and ownership.
3Core Wealth Priorities
Preserving family wealth, values, and continuity remains the primary focus for 78% of the surveyed custodians. Beyond safeguarding existing assets, 46% of families are prioritizing income growth and diversification. Furthermore, 38% of respondents aim to build a lasting legacy that extends significantly beyond mere financial returns for the next generation of heirs.
4Investment and Risk Strategy
Families generally favor measured risk over high-stakes investments or excessive caution, prioritizing stability and predictability. Data shows that 56% of respondents focus on long-term capital appreciation and compounding. Meanwhile, 21% of these families prioritize exposure to innovation, emerging sectors, and new-economy themes to ensure their portfolios remain relevant in changing markets.
5Generational Decision Involvement
Involvement of the next generation varies significantly across family stages. Among first-generation families, 36% report that the next generation has meaningful influence or co-leads specific areas. This share drops to 18% in second-generation families before rising to 54% in third-generation families, suggesting a tighter control phase during the second-generation transition period.
6Future Leadership Roles
Looking four to five years ahead, 46% of third-generation leaders expect to be actively running and scaling their businesses. Conversely, 46% of second-generation leaders anticipate transitioning into strategic or board-level roles. This shift highlights a clear trend toward professionalizing governance as families move further away from their original founding members.
7Institutionalizing Family Offices
Institutionalizing family offices and exploring global exposure are gaining traction, with 30% of respondents prioritizing these goals. First-generation families primarily focus on wealth preservation, while third-generation families increasingly pursue legacy protection alongside new growth avenues. This evolution reflects a maturing approach to managing complex family assets and long-term strategic institutional development.
8Responsibility of Heirs
Succession planning is defined as the process of preparing for the transfer of leadership, ownership, and management. Experts emphasize that the next generation is not simply inheriting wealth but is inheriting responsibility. The primary task involves becoming a custodian of the family’s values and purpose while building and growing the institution.
Original article: mint - money — 42% of Indian Wealthy Families Lack Formal Succession Plans