Dilip Piramal is exiting, but here’s what it really says about Indian-run empires

For many decades, Indian family culture has been rooted in tradition, where family bonds are strongly tied, elders are deeply respected, and group needs are highly prioritized. With a collective mindset, the family input has always been particularly valued, whether that be what education to pursue or who to marry.

But even more, a common part of the Indian family is the planned future the kids are expected to follow when the time comes. In many Indian-run family businesses, for instance, there is a common assumption that the next in line will carry the torch when the founder retires, with the hopes that they’ll continue a legacy into the next generation. Yet, as modern times are constantly changing, sometimes accepting an outdated view is no longer sustainable.

That idea is exemplified in one Indian family when Dilip Piramal, chairman of the billion-dollar company VIP Industries, made the recent decision to sell his family’s 32% stake to private investors, leaving his business vulnerable to folks completely separate from the bloodline. 

“Dilip Piramal’s decision to sell VIP Industries after 53 years underscores a growing reality that succession cannot be assumed as a family affair. When the next generation lacks interest or preparation, defaulting to tradition can lead to stalled growth, governance gaps, and lost market value,” Ankit Shrivastava said, Founder & Managing Partner of Enventure, a U.S.–India private equity firm focused on unlocking long-term value in founder-led businesses.

For Piramal, the choice to sell his business is exactly what experts in the industry are arguing: when an entrepreneur only looks within the family tree, they face a challenging dilemma when their heir is not keen on taking ownership. As a result, family entities risk major losses, such as a decrease in revenue, lack of employee retention, and a strained long-term outlook.

Instead of resorting to an outdated philosophy, business founders must start with an intentional strategy—one that puts its identity first and regrettably, its family behind.

“Succession is not inheritance; it’s a strategic choice that shapes the future of an enterprise. Preserving legacy isn’t about keeping a surname at the helm—it’s about choosing leaders best equipped to drive progress. Competence over convention is the only way to ensure resilience in the face of generational change,” Shrivastava added.

As many family succession professionals suggest, here’s what proper succession planning looks like:

• Don’t wait. Many family founders often wait until it is too late to start planning for the next steps. But contrary to popular belief, it is never too early to start consulting a strategy now.
• Assessment and analysis. As you are making the move to retire or leave, start evaluating your organization’s current state and future priorities. Take note of what’s working versus not, and make important analytical decisions based on what is needed.
• Talent identification. Always keep track of your talent and acknowledge their skills and the roles they play. Determine who is showing leadership potential or may have all the possible requirements as your next successor.
• Knowledge transfer. Implement a clear process for transferring knowledge. For example, archive important projects or integrate a strong training program from the get go.
• Know your vision. There are so many paths you can take with transition planning, and when it comes down to it, remember the goals that are most important to you. Make choices based on what you believe will be the best suited for your company’s future.

In a case like Piramal’s, it is evident that family-run businesses today are facing the reality head on. But with a shift in mindset, family founders can soon find themselves in a clearer direction—and one that is going to uphold their dreams for so many more years.

For Indian families everywhere, tradition is sacred and a rare concept that can’t be found in many other cultures. But when it comes to the family business, it’s time to reroute our plans to those who can promise longevity for the original founder’s peace of mind.