Working PapersBang, Nupur Pavan., Ramachandran, Kavil. "DODLA’S DILEMMA"Read Abstract >Close >D. Sunil Reddy established Dodla Dairy in the year 1995 at Nellore district of Andhra Pradesh, as a greenfield company. An industrial engineer from Mangalore University, Sunil started Dodla Dairy at the age of 27, with the seed money given by his father.
He would often wonder if the brand ‘Dodla’ and the Company sustain beyond ‘Sunil Dodla’. While Sunil continues to put in efforts to increase capacity, expand and capture more market share, he keeps asking himself, “What next”, “How do I build a legacy?”
If the company had to move to the next orbit, both in term of size (revenues, assets, market share) as well as professionalization, certain organizational changes were necessary. “What were these changes and who would do it?” How could Sunil better prepare himself and the company for the future? How would the company move from being a family owned enterprise to a professionally run, sustainable organization?
Would one of his daughters bring about that freshness by joining the company and yet provide continuity in terms of the family values? Would it be an outsider? “Who after me?” thought Sunil.
After two decades, a certain degree of fatigue was beginning to set in and he had been contemplating his own role in the company. The days when he was under pressure or had a bad day, he would think of selling off the company, take the money and live peacefully ever after. On the other days, he would think of building a sustainable organization and leaving a legacy!
Working PapersBhatnagar, Navneet., Ramachandran, Kavil. "Emami’s Mission to the Next Orbit"Read Abstract >Close >This case is about the challenges of professionalisation and succession faced by an Indian, family controlled, personal-care products company, Emami Limited. Emami was setup in 1974 at Kolkata by two childhood friends, Radhe Shyam Agarwal (RSA) and Radhe Shyam Goenka (RSG). They started with a small capital of INR 20,000 and had grown the business to INR 1.8 bn in sales by financial year 2013-14. Emami had earned a reputation for being innovative in development of products based on keen consumer insights. Ever since Emami tasted initial success in business (i.e. within 3-4 years of its inception), the company adopted an inorganic strategy for growth and made several strategic business acquisitions. As the business grew, it implemented organizational changes, brought in functional experts from outside and professionalised its operations.
During the first four decades since it was founded, Emami grew its product portfolio to include ayurvedic formulations and nutraceuticals. Besides, the group diversified in other businesses such as paper, real estate and construction. However, Emami Limited, the personal care company continued to be the group’s flagship that generated most of its wealth. Business growth increased the complexities of Emami’s operations. In order to manage those complexities Emami made efforts to professionalise their systems and processes.
However, as the founders grew older, they had realized the need for succession planning to pass on the leadership to the next generation. They were also cognizant of the need to establish family governance mechanisms and structures to ensure Emami’s sustainability across generations. Another key challenge they faced was how and whom to select as their successor because their children had been brought up together, had similar educational qualifications, business experience and performance record. It was quite hard for them to pick one member over the other.
Working PapersBang, Nupur Pavan., Ramachandran, Kavil. "THE UNFINISHED AGENDA: DR. REDDY’S LABORATORIES LTD"Read Abstract >Close > Dr. Anji Reddy founded Dr. Reddy’s Laboratories Ltd (DRL) in 1984. Since then, the company has grown to become one of the largest pharmaceutical companies in India. The company professionalized early on and the family members defined and refined their roles for the efficient running of the company.
Dr. Reddy passed away on March 15, 2013. Within a fortnight of his demise, the Board of the company instated G.V. Prasad, the son in law of Dr. Reddy as the Chairman and Chief Executive Officer (CEO) and K. Satish Reddy, the only son of Dr. Reddy, as the “Vice-Chairman” in addition to his role of Managing Director and Chief Operating Officer (COO).
The appointments triggered a barrage of media and analysts comparing Prasad with Dr. Reddy and raising doubts about the continuity of Dr. Reddy’s principles within the company and the relationship between Satish and Prasad.
While Prasad had been with DRL for more than 25 years by then, Dr. Reddy’s shoes were rather big to fil in. He acknowledged that a lot needed to be done to fulfil the dreams of Dr. Reddy.
Working PapersRamachandran, Kavil., Bhatnagar, Navneet. "Touchdown Footwear on Slippery Slope"Read Abstract >Close >This case is based on the professionalization and governance challenges faced by Touchdown Footwear Limited (TFL) – an Indian mid-sized footwear manufacturing family business. It was setup in1965 by three brothers, Ramnath, Krishna and Ganesh Pai who had inherited their father’s rubber trading business. Initially, TFL made flip flop slippers and catered to the local market. Over the years, TFL had a larger product portfolio, and by 2013, they had a pan-India presence with some exports to African markets.
In the early years, the three brothers managed all functions. As the next generation grew up, they started joining the firm and took up different roles often based on business exigencies. By 2013, TFL had a turnover of 6.23 INR, but lacked a clear strategy and professional management. In the absence of appropriate structure, systems and processes, decision-making was ad-hoc. Inefficiencies and wastages were evident all across, and working capital was under severe strain.
The firm suffered from governance deficit at both family and business levels. Lack of clear policies and processes delayed many crucial decisions. Earlier attempts to professionalize the business failed to achieve the desired results as family members neither had clear policies nor could change their mindset. Besides, there were questions about the level of commitment and discipline of the next generation. Vivek, the case protagonist, who managed TFL’s finances, realized the need for a transitional change on multiple fronts to sustain the business but was unclear about roadmap.
Working PapersLampel, Joseph., Ramachandran, Kavil., Bhalla, Ajay. " Inter-Institutional Venture Governance in Indian Family Firms "Read Abstract >Close >