This is a case on the interlinkages among strategy, professionalization and governance in building sustainable Indian family businesses. Sudarshan Chemicals Limited, set up by the Rathi family in Pune in 1951 has over the years emerged as one of the largest pigment manufacturers in the world. It has evolved over the past half century without any major turbulence at the interface of family and business.

Since beginning, the company has strictly adhered to the practice of professionalism. Employment of family members in the business was conditional to their fulfilling specific educational qualifications. They considered share ownership of the company did not entitle anyone a job there. Non family executives were highly respected for their professional capabilities. The case narrates how smoothly the family practiced strong sense of governance that enabled them to behave professionally. In 2003, management of the company was completely handed over to the second generation that formalized many of the best practices with the help of a consultant.

There are no major decision dilemmas in the case, but it is a good case to discuss what else and how better things could have been done in Sudarshan. The case establishes the interdependence of professionalization and governance at all levels in implementing the company strategy.