Lesson learned from Ambani's mistake, this shoe company can transfer business to the new generation

It is very important for any big business that its transfer to the new generation should be done properly. Dhiru Bhai Ambani made a mistake in this matter, now Mukesh Ambani has rectified it. There is another shoe company which is now preparing to hand over the business to the third generation. Read this news...It is very important for any big business that its transfer to the new generation should be done properly. Dhiru Bhai Ambani made a mistake in this matter, now Mukesh Ambani has rectified it. There is another shoe company which is now preparing to hand over the business to the third generation. Read this news...

Dhiru Bhai Ambani built a business like Reliance Industries, but at his age, he did not divide it properly between his two sons. The result was that the whole country saw India's biggest business division on TV channels. Now that Mukesh Ambani has the command of Reliance, he has started dividing the business among his three children. The same is going to be done by the shoe company 'Liberty Group', which is now preparing to hand over the reins of the company to its third generation.

Liberty Shoes was started in 1954 by three partners D.P. Gupta, P.D. Gupta and R. Of. Bansal did. By the 1980s, the group formed many more companies and in 1994 this company was listed on the stock market. Now its market capitalization is around Rs 400 crore and now the command of the company is going to go to the third generation.

Second generation running business for 2 decades

Liberty Group has been managed by the heirs of the 'Gupta' and 'Bansal' families for more than two decades. Now that families have spread further. The number of shareholders or heirs has expanded, so the group is working on a perfect succession plan to hand over the business to the third generation, and wants to complete the process expeditiously.

Liberty Footwear is spread across Liberty Enterprises, Liberty Leathers and Liberty Group Marketing Division. All these are handled by 'Liberty Shoe Limited' like a holding company, which is also listed in the stock market. Anupam Bansal of the second generation says that at present the work of each company is divided differently. Everyone has their own responsibility for their work and hence there is no overlapping of work.

Waiting for the command of the third generation

While the second generation has defined roles in the Liberty Group, the division of work in partnership companies is also clear. So the third generation is waiting for a clear succession plan. In the 90s, when the command came to the second generation, a succession plan was also made, but after the death of the three co-founders, it could be implemented between 2001 and 2003, they could not implement this plan during their lifetime. Can get it done That's why the second generation wants to settle this process as soon as possible.

Anupam Bansal says that now we feel that the time has come to take the business out of the hands of the family and make it professional. Most of the operating part of the business should be handed over to the professionals, and the family members should sit back and do the business comfortably. Interfere in the day-to-day operations of the business as little as possible.

Can adopt 'Dabur model'

Taking care of everyone's feelings among so many stake holders of three families, it will be difficult to divide the business. That's why it is expected that Liberty Group can adopt 'Dabur Model'. The Burman family has appointed a CEO from outside in the company, who handles the business of the company. The rest of the family members are part of the board.

PwC found during a survey in 2023 that only 19 percent of businesses in India have implemented a successful model of succession or a mechanism to resolve disputes.