Arun Bharat Ram, Chairman of SRF, knows the downside of familybusinesses well. The one he was originally part of, Delhi ClothMills, now called just DCM, has split twice - in 1989 and again in1999. The first time it broke into four: DCM, DCM ShriramIndustries, DCM Shriram Consolidated and Shriram IndustrialEnterprises; the second time, SRF - a DCM subsidiary since 1970 -broke away. Even at 70, he is totally hands on, keeping a strictvigil to ensure conflicts are nipped early.
SRF too has formulated a constitution to guide family members. "Aconstitution does help in reducing conflicts to some extent," saysRam. But he is aware of its limitations. "Even a constitution cannotguarantee protection against splits," he adds.
Size: Rs 3,391 crore
No. of generations in business: 3
Key measures in place: Family constitution
Goal: Ensuring family lives in harmony and continues to serve thebusiness
Mantra for success: Managing the family is as important asmanaging the businessRam acknowledges that in the past Indianbusiness families, including his own, may not have given familyissues the attention they deserved. "Managing the family is asimportant as managing the business," he says. "In India, in thepast, we neglected our families and concentrated on managing thebusiness."
Ram ensures frequent family lunches, outings and even vacationsso that the bonding between family members remains strong. Thoughtheir businesses are now entirely separate, he keeps in close touchwith other members of the DCM parivar as well. "We meet at leasttwice a month and share a great relationship with our cousins," saysKartikeya Bharat Ram, Arun's younger son and Deputy ManagingDirector of SRF.
Values too are changing, albeit slowly. Unlike in the past, theonce arch-conservative SRF family now allows daughters to play anactive role in the business, though daughters-in-law are stillbarred.
-Sunny Sen
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