Soumya Rajan and Zara Thakkar Write: How Women are Claiming Their Place in Family Businesses

In my years of working with India's wealthiest families, I have observed a significant shift in succession patterns. For a long time, succession followed a predictable rhythm: fathers passed the baton to their sons, and the male lineage continued through corporate structures much as it did through inheritance rituals.

Daughters were either not a part of the picture or given roles adjacent to power; either way, they were rarely placed at its centre. But today, women from business families are increasingly stepping into roles of responsibility and authority in their family businesses.

The foundations for this shift were laid decades ago. India’s family-planning policies in the 1960s led to smaller families and changes in inheritance laws in the mid-2000s paved the way for women to become an integral part of family business succession.

Simultaneously, regulatory changes such as Sebi’s mandate for at least one woman director on listed-company boards have pushed families to rethink the role of women in governance and leadership. Equally, the broader backdrop to this transformation is the progress made in advancing gender equality, including increased participation in the workforce, greater access to higher education and shifting cultural expectations.

Making a Mark

In the context of family businesses, all these changes have positioned daughters as both capable and competent successors. But the road ahead is long. In India: State of Family Business Report 2023 by SP Jain Institute of Management and Research, while 68% of surveyed family firms reported active involvement of women family members, only 11 firms had women chief executives, and just two reported women in senior leadership roles. The report also found that participation varies depending on the size of the business: while small enterprises reported 43.2% active women members’ participation, medium and large enterprises accounted for only 19% and 3% respectively.

While progress must be acknowledged, we must reflect on its depth to ensure that the shift is not merely symbolic.

We are witnessing a historic intergenerational wealth transfer underway across the Asia-Pacific region, with an estimated $5.8trn expected to change hands between 2023 and 2030, and Indian business families account for a significant portion of this transition.

As the focus shifts to wealth preservation and long-term stewardship, the traditional model of primogeniture is gradually giving way to merit-based succession planning, especially when complex businesses and large pools of assets are involved.

Today’s women scions are entering family businesses with not only legacy ties but also impressive academic and professional credentials. Many bring with them experiences from consulting, investment banking, law, venture capital or other fields that sharpen strategic thinking and build professional credibility.

Consider Roshni Nadar Malhotra, who transitioned into leadership at HCL Technologies after a career rooted in media and philanthropy. Another notable example is Isha Ambani, who has academic credentials from Yale and Stanford and hands-on experience across business functions. Some families have also embraced collective leadership models, like the Reddy sisters at Apollo Hospitals, who each lead distinct health-care verticals.

League of Their Own

There is another category of women leaders whose influence remains unrecognised in formal succession discussions: daughters-in-law. We see them step in during times of inter-generational transition and exercise their influence as their spouses take over the reins of the family business.

Recent research supports what many in the family business ecosystem already observe: companies with gender-diverse leadership tend to outperform their peers. McKinsey’s 2023 study found that such companies were 39% more likely to deliver better financial results, up from 15% in 2015. Studies show that women leaders prioritise collaboration over command and avoid rigid power structures, opting instead to work alongside people to find consensus and drive results.

They also use their positions to create opportunities for others and are more likely to invest in employee training, create mentorship programmes and build inclusive workplace cultures. Importantly, women leaders tend to hire more women, establishing pathways for future generations.

For women who have not been able to enter the business, the key roadblock is the hesitation to voice their thoughts despite their willingness to participate. Families must make deliberate efforts to create spaces for dialogue and contribution so that capable women can add strategic and relational value to the business.

Women who do participate still have to overcome deeply embedded scepticism. They may be expected to demonstrate a higher level of competence than their male siblings, or their decisions may be more closely scrutinised. Or, they may not be taken as seriously, facing implicit doubts about their long-term commitment to the business, especially when expected to juggle family responsibilities alongside leadership roles.

Leaving a Legacy

Despite resistance, their success speaks to their capability, resilience, and long-term vision. It also reveals the importance of encouraging and supporting women in the same way we do men. From a wealth-management perspective, families that formalise women’s roles early and embed them into succession frameworks tend to achieve smoother transitions and better business continuity outcomes.

While the winds of change are blowing stronger than ever, they are not yet steady. True change will come from reimagining leadership norms, succession models and governance priorities. For wealth-management professionals, this means helping families develop transition strategies that recognise women's capabilities while addressing legitimate concerns about continuity and performance.

This is really the start of a larger conversation about how we share these lessons with future generations. Families who are at the helm of these changes will not only build more resilient enterprises but also leave a legacy of equality and empowerment.

(Rajan is founder and chief executive, Waterfield Advisors; Thakkar is an assistant manager, content, Waterfield Advisors)