India Inc's family feuds serve as both cautionary tale and policy cue

India Inc needs a new social compact that balances family control and public interest to ensure market resilience and its own

India’s corporate sector has long been dominated by family-run and promoter-controlled businesses. Over the decades, these businesses have powered growth, generated employment, and built household names. Yet, beneath this success story lies an uncomfortable reality — one where family feuds, opaque decision-making, and fragile boards increasingly threaten shareholder value and corporate governance norms. Recent controversies surrounding companies like Raymond, Religare, and Hero MotoCorp only reinforce the urgent need for a new social contract governing promoter control in India Inc.

 

The distinctive feature of Indian capitalism is its promoter-led ownership model. In nearly 70 per cent of listed Indian companies,