Most Indian companies value succession, only a few chart out formal plans
Indian corporates
recognise the importance of
succession planning
, but a mere 18% have established formal plans, according to a report by TimesPro.
The report-State of Succession Planning in Indian Organisations- says succession planning ranks the lowest among
strategic priorities
, with only 17% of organisations placing it at the forefront.
Experts believe organisations lacking structured succession frameworks have experienced strategic drift, diminished
market value
and reputational setbacks.
One TimesPro expert said the emphasis among corporates continues to be on "short-term growth, often at the cost of long-term
leadership continuity
."
Another expert who did not want to be identified stressed that succession planning enables continuity, cultural alignment and future readiness, especially within
family-owned enterprises
where emotional stakes and informal governance structures often impede objective decision-making.
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He highlighted challenges such as resistance to ownership transfer, financial disputes, protracted transition timelines and sibling rivalries-all of which can derail effective succession. The
TimesPro report
also drew attention to a striking concern-nearly 50% of surveyed organisations lack a board member under the age of 40, signalling a significant gap in age diversity and innovation potential.
"This is a crisis of another kind-one that affects agility and future-readiness. If India Inc. aspires to remain globally competitive, succession planning must be accorded the same seriousness as fiscal policy," said Anish Srikrishna, CEO, TimesPro.
The IT sector was cited as a positive outlier, with structured succession initiatives gradually stabilising leadership transitions after initial turbulence. Among sectors surveyed, 31% of IT firms have formalised succession strategies, followed by 15% in manufacturing-often hampered by family-led leadership-and the services and retail segments, where high attrition and growth pressures dominate.
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Time of India
18 minutes ago
- Time of India
Dressed to chill: EQT, Bain Capital emerge as final bidders for 31% controlling stake in Whirlpool India
Tired of too many ads? Remove Ads Parental Rejig Tired of too many ads? Remove Ads Popular in Cons. Products 1. Daikin sets up GCC in India in association with EY Tired of too many ads? Remove Ads Cool Positioning Buyout groups EQT and Bain Capital are in a two-horse race for 31% controlling interest in Whirlpool of India, listed local arm of the US appliances giant, three senior industry executives said. Private equity peers TPG and KKR, as well as potential rival contenders Havells and Reliance Industries , have fallen back, they and Bain Capital are conducting detailed due diligence ahead of the deadline for a binding offer, said to be in didn't respond to queries sent to its US and India and Bain declined to parent Whirlpool Corp has been looking to sell a 31% stake in the India unit, which generates the bulk of its Asia revenue, while retaining 20%. The equity in India is held through Whirlpool was the first to report June 20 on the interest of Reliance and Havells in the stake. Whirlpool India 's market cap was Rs 18,116 crore as of Tuesday's close on the India business monetisation exercise is part of a global reorganisation initiated at the end of 2022, when the company, known in the US for the Whirlpool, KitchenAid and Maytag brands, posted a $1.5 billion company has said it's keen to raise net cash proceeds of $550-600 million (Rs 4,684-5,110 crore) from the 31% stake sale transaction by this calendar year. A formal stake sale process was launched in April by advisor Goldman Sachs A transaction will also trigger an open offer for an additional 26% stake in the company. As with several deal negotiations, Whirlpool's punchy valuations have been a deal spoiler for most potential suitors. Another bone of contention is said to be the royalty payout to the parent in the end of January, the stock plunged an exchange-allowed maximum of 20% to a near 10-month low when the company first announced its intent to pare ownership in India. It has rebounded since then. In April alone, the stock soared 33% after the sale process was launched. Since April, the stock has appreciated 29.39%, ending Tuesday at Rs 1,427.90 on the BSE, marginally down from fully subscribed, the incoming investor could end up owning 57% of the company. Public shareholders now own 49%. At current prices, this would translate into a deal worth Rs 10,354.62 crore, a slight premium to expectations, said the people the US parent isn't happy with the final offers, it may once again divest through the open market route, analysts said. The parent sold a 24.7% stake in its Indian arm in February last year through block deals worth Rs 4,039 crore to institutional investors, led by five mutual funds including SBI Mutual Fund and Aditya Birla Sunlife Mutual Fund, besides foreign institutional investor Societe is among the top four brands in refrigerators and washing machines in India, with revenue of Rs 7,421 crore and net profit of Rs 313 crore in FY25. 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The company intends to build Kelvinator into a full-fledged appliance the first MNC consumer electronic brands to enter India in the late 1980s, Whirlpool hasn't been able to scale up as much as rivals LG, Samsung and Haier, which came in much later, or even homegrown brands such as executives are of the view Whirlpool still has sizeable brand equity, a substantial manufacturing base and a robust presence in smaller cities and towns through distributors.'The company does not have a massively differentiated portfolio,' said the chief executive of a consumer company who was approached for a possible stake purchase. 'The industry margins are also shrinking in the mass segment.'Whirlpool Corp's chief financial and administrative officer James W Peters told analysts recently that the India transaction has 'generated significant interest from large third-party investors.'The parent intends to repay or refinance debt with this money as it had done the last had said the reduction of the parent shareholding will result in 'increased autonomy' at the Indian unit.'While Whirlpool operates in a similar pricing range to Voltas Becko and Godrej, its customers are sticky,' said Arshia Khosla of Nirmal Bang. 'In order of preference, it stands out with high brand recall, higher number of SKUs (stock keeping units) and leadership in the product category. But heightened competitive intensity is expected to keep Whirlpool's growth under check in the near term.'
Mint
18 minutes ago
- Mint
Stocks to trade today: Trade Brains Portal recommends two stocks for 23 July
Today, we recommend two stocks, both from the water supply management sector. The water supply management is crucial for India due to its large population, dependence on agriculture, and increasing water scarcity. We also analyze the market's performance on Tuesday to understand what may lie ahead for the stock indices in the coming days. Stocks to trade today, recommended by Trade Brains Portal for 23 July: Ion Exchange (India) Ltd Current price: ₹540 Target price: ₹685 in 12 months Stop loss: ₹465 Why It's recommended: Ion Exchange, one of the top water and environmental management firms, was founded in 1964. A range of households, communities, organizations, and industries are served by the company. Ion Exchange is headquartered in Mumbai and operates seven production and assembly facilities throughout India, as well as one each in Bangladesh, Indonesia, Saudi Arabia, and the United Arab Emirates. It also has a facility in Portugal. The business also boasts two applications and testing centres, two in-house R&D facilities, over 50 patents, and over 100 commercialized products. In FY25, the company's consolidated operating income stood at ₹2,737 crore, a 16.6% rise year-on-year. Profit after tax was up 6.6% on-year to ₹208.3 crore, while operational Ebitda increased 8% on-year to ₹293.9 crore. The company's revenue in FY25 was ₹29.02 crore (10%) from consumer goods, ₹81.84 crore (29%) from chemicals, and ₹170.38 crore (61%) from engineering. Exports contributed 35% of revenue and domestic sources 65%. The company had a total order book of ₹2,762.03 crore as of 31 March 2025, and orders from its robust bid pipeline totalled ₹8,834 crore. The company is looking for opportunities in semiconductors and data centres, as well as expanding its product and go-to-market portfolios globally to include chemicals and membranes. The Roha Greenfield Resin Plant is expected to generate revenue and improved margins in Q3 and Q4 of FY26, after the company made significant investments in infrastructure, personnel, and the distribution network in FY25. The debt component makes up about 80% of the company's approximately ₹400 crore total capital expenditure for the Roha project in FY26. This term loan has an interest rate that is a little less than 10%. The value of the unfinished UP project order was ₹378 crore, and it was anticipated to last until Q1 of FY26. Risk factor: The engineering segment's revenue remains impacted by economic cycles. Additionally, the business serves PSUs and government organizations, the costs of which are closely related to the state of the economy. Any downturn in the Indian economy or any postponement or delay in capital expenditure (capex) in end-user sectors could hurt IEIL's earnings. Ganesha Ecosphere Ltd Current price: ₹1,530 Target price: ₹1,855 in 12 months Stop loss: ₹1,367 Why it's recommended: Ganesha Ecosphere Ltd, one of the largest rPET Fibre manufacturers in India, was created in 1987. In addition to producing recycled polyester staple fibre (RPSF), dyed yarn, and recycled spun yarn, the company has recently expanded into the production of rPET chips and rPET filament yarn. The company has a strong statewide collection network, especially in the northern and southern regions, and mobilizes 450 tonnes of PET bottle waste every day. With a network of over 300 suppliers across India, 400+ customers in more than 20 countries, and over three decades of industry experience. Currently, the company has six manufacturing facilities and recycles more than 8.5 billion scrap bottles annually. The company's revenue increased by 30.5% on-year from ₹1,122.9 crore in FY24 to ₹1,465.5 crore in FY25. Its Ebitda grew by 52.72% on-year from ₹137.9 crore in FY24 to ₹210.6 crore in FY25. In FY25, the Ebitda margin was 14.4%, compared to 12.3% in FY24. In contrast, its profit after tax climbed from ₹40.6 crore in FY24 to ₹103.1 crore in FY25, a 154% on-year increase. Ganesha Ecosphere is a prominent player in the PET plastic recycling market in India with 196,440 tonnes of installed capacity and an annual conversion rate of over 150,000 MTPA of PET waste. By H1FY27, the company intends to expand its capacity for rPET granules in Odisha to 67,500 MTPA, while by Q4FY26, it anticipates expanding its capacity in Warangal to 22,500 MTPA. Over the next two years, the business plans to invest ₹725 crore in capital expenditures to expand the capacity of rPET granules (Ganesha Ecopet Pvt. Ltd). Of this amount, ₹600 crore will be used for the greenfield growth in Odisha and ₹125 crore for the brownfield expansion in Warangal. In order to increase the credibility of its raw materials and the effectiveness of its supply chain, Ganesha Ecosphere has partnered strategically with Race Eco Chain (49:51) to secure PET flakes through a statewide hub-and-spoke sourcing strategy. Risk Factor: The availability of PET waste and the volatility of VPSF pricing, especially in a declining price scenario, can influence GEL's profitability. GEL's raw material (PET waste) costs are driven by its demand-supply dynamics, while RPSF revenues are affected by changes in VPSF prices, which depend on the prices of crude oil and cotton. Consequently, the business has limited ability to pass on raw material cost increases. Market recap Tuesday's opening price of the Nifty 50 index was 25,167, up 76 points from Monday's closing price of 25,091. Throughout the day, the index fluctuated a lot, closing flat at 25,060.90, down -29.80 points, or -0.12%. In the daily time frame, it was below the 20 EMA but above the 50, 100, and 200 EMAs. With an RSI of 46.65, it was significantly below the 70-point overbought zone. The BSE Sensex opened at 82,527, up 327 points, similar to the previous close of 82,200. The Sensex ended the day at 82,186, down -0.02% or -13.53 points. The Bank Nifty dropped -196.75 points, or -0.35%, to close at 56,756 in the red. The Nifty India Digital Index was one of the biggest gainers on Tuesday, closing the day at 9,114.25, up 102 points, or 1.1%. Major stocks that helped the index rise included Eternal Ltd, which increased 10.3%; Swiggy Ltd, which increased 5.7%; and Info Edge (India) Ltd, which increased 4.2% on Tuesday. At 11,801.50, the Nifty India Consumption Index likewise ended the day higher, up 54.40 points, or 0.5%. But the Nifty Media Index ended the day at 1,733.60, down -2.3%, or -40.30 points. The index was dragged down by stocks such as Zee Entertainment, Dish TV India, and Network 18 Media & Investments; Zee Entertainment was the biggest loser, down 5.7%. Another significant loser was the Nifty PSU Bank Index, which ended the day at 7,006.35, down -111.75 points, or -1.6%. Canara Bank, Punjab National Bank, and Punjab & Sind Bank were among the banking stocks that pulled the index lower; Canara Bank was the biggest loser, dropping 3.6%. Tuesday's Asian markets were mostly mixed. At 3,169.94, South Korea's Kospi fell 1.29%, or -40.87 points. The Nikkei 225 index closed at 39,774.92 points, down -0.11% or -44.19 points. The Composite Index of Shanghai, on the other hand, ended the day higher at 3,581.86, up 22.07 points, or 0.62%. The Hang Seng index closed at 25,130.03 points, up 0.54%, or 135.89 points. On the US stock exchange, Dow Jones Futures are down -30.80 points, or -0.08%, at 44,292.27 at 4:33 p.m. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
18 minutes ago
- Mint
India's manufacturing bet draws millions as sector-focused funds surge
Bengaluru: Singularity AMC, the investment firm backed by veteran investor Madhusudhan Kela, is raising capital from select investors seeking exposure to portfolio companies with significant presence in high-growth manufacturing sectors. The fund is mandated to support sectors such as renewable energy, energy storage, transmission and distribution, battery materials, critical energy minerals, defence, electronics, semiconductors, medical devices, nuclear energy, and aerospace and automotive components. 'The deal size will range between ₹250 crore and ₹500 crore alongside co-investors who will invest in high-growth manufacturing companies," said Yash Kela, founder and chief investment officer of Singularity. 'We are aggressively investing in the sector and we believe that there is great potential to invest capital and get scalable exits." Founded in 2016, the firm has invested in several manufacturing companies such as Lohum CleanTech, HEG Ltd, Qucev, Sterling and Wilson Data Center and Silver Consumer Electrics, among others. Some of these companies may eye a public listing in the coming year, charting a viable route for exits for Singularity. New class of sector-specific funds Singularity's push comes as a growing number of investors look to tap India's manufacturing potential. While sector-specific funds remain relatively uncommon in India's investment ecosystem, their rise suggests a shift in strategy as firms pursue more targeted exposure to high-growth verticals. Over the past year, several firms with significant exposure to manufacturing have launched new funds to tap into the sector's potential, even as they continue to invest across other verticals, according to data from Venture Intelligence. These include Amicus Capital, Trident Growth Partners, RevX Capital, Veloce Opportunities Fund, Finnolve, Folks Motor, and Arka Investment Advisory. Amicus Capital has raised $171 million in its first close for a fund targeting $200 million. Trifecta Capital has raised $120 million toward a $240 million goal, while Trident Growth Partners has secured $117 million toward a target of $234 million. While these funds maintain diversified strategies, each has significant exposure to the manufacturing segment. Even smaller firms are reorienting strategies to tap the opportunity. Capital-A, a seed-stage investor, has pivoted its $50 million second fund to focus on manufacturing and deeptech. Founder and lead investor Ankit Kedia attributed the move to 'macroeconomic tailwinds in the country which are pointing towards a very strong manufacturing sector". Other sectors, including proptech, media and climate tech, have also seen increased interest from sectoral funds over the past year. While such strategies have existed in the Indian investment landscape for some time, they are increasingly coming to the fore as investors seek to make more focused bets on sunrise industries to maximize returns. This uptick in activity comes as private equity and venture capital investors look to identify the next wave of companies that will strengthen supply chains and accelerate India's shift toward an export-led economy. Several large manufacturing deals have materialized this year. VIP Industries raised $206 million in a round led by Multiples. Euler Motors secured $75 million from GIC and British International Investments, while Scimplify raised $40 million in a deal led by Accel and Omnivore Partners. Rangsons Aerospace also raised capital in a round led by ValueQuest. According to Venture Intelligence, firms have raised close to $1.9 billion in 2025 so far, about 60% of last year's total of $3.2 billion across 123 deals. Macroeconomic tailwinds and policy push The momentum reflects a shift triggered by pandemic-era supply chain disruptions, which exposed India's reliance on imports and prompted a policy and capital push toward local manufacturing. Several venture capital firms and startups began aligning their focus accordingly. 'We are seeing strong tailwinds from the China-plus-one strategy, which is driving both domestic and global demand for more resilient, distributed, and technology-enabled supply chains," said Prashant Prakash, partner at Accel. Accel recently announced its eighth fund with a $650 million corpus, and has identified manufacturing as one of its key focus areas. The firm has previously invested in companies such as Zetwerk—which derives most of its revenue from international markets—automated composite manufacturer Fabheads, and Nabhdrishti Aerospace, a gas turbine engine company. Motilal Oswal Alternates, another firm leaning into the shift, has strengthened its team over the past two years to sharpen its focus across various manufacturing sub-segments. 'Defence, electronics, automotive and other components are getting added to the entire manufacturing sector," said Prakash Bangla, managing director at the firm, adding that the construction and building materials segments are also expected to pick up. Government initiatives have also played a catalytic role. In 2020, a production-linked incentive (PLI) scheme was launched across 14 sectors, including medical devices, pharmaceuticals, IT hardware, and drones, with a total outlay of ₹1.97 trillion. As of August last year, realized investments stood at ₹1.42 trillion, according to an official release. However, earlier this year, Reuters reported that the government does not plan to extend the scheme beyond its current scope, citing delays in subsidy payouts and difficulties in ramping up production in some sectors. 'What it helped with was to get the ecosystem running. For folks who wanted to build and survive, they've found a way to do it," said Kedia, adding, 'Any business that depends on PLI was never a business to start with." He cautioned that while industries like smartphones, pharma and electronics manufacturing services (EMS) are blue-chip, manufacturing startups must build clear differentiators or risk margin compression across the board. Still, investor interest remains buoyed by targeted policy interventions. Earlier this year, the government launched a new PLI scheme focused on EMS sector, with a proposed investment of ₹59,300 crore and projected incremental production of ₹4.6 trillion. EMS players, whose components serve defence, medical devices, and consumer appliances, are already seeing traction. 'Aerospace and defence, medical devices and semiconductors will be split 40:40:20. India is going to be a huge driver for our semiconductor vertical," said Kaushik Mudda, founder and CEO of Ethereal Machines. Currently, about 80% of the company's revenue comes from exports to other nations. The precision manufacturing startup, backed by Peak XV Partners and Steadview Capital, expects its revenue mix to shift as the national manufacturing focus deepens. Defence and aerospace account for 70% of revenue, while medical devices make up 20%. General engineering and semiconductors contribute 5% each. The flip side of the EMS sector, according to Kedia, is concentration risk, where a company's revenue is concentrated to one or two clients. If they lose those, they risk going under. 'Eventually, for the EMS ecosystem to thrive and survive, they'll need a mix of large, medium and small customers, so they can de-risk and not have more than 10% concentration from one client." Opportunities and gaps Still, challenges remain as India attempts to position itself as a credible alternative to China. Experts say it may take another 10 to 15 years to close the capability gap. 'At the moment, we still rely on China when it comes to tools and tool designing. The other aspect is top-end talent to actually set up plants in sectors like EMS. For a sector like semiconductor manufacturing, we still hardly have the engineers available," said Amarjeet Singh Makhija, partner and markets lead advisory for startups and unicorns at PwC India. Capital-A's Kedia noted that we don't necessarily need cheap labour to compete with China. 'We are seeing that there are ways to automate it, and that's the lever playing out in many startups today, and this will further drive investments in the space." Recent data underscores the tension between bullish sentiment and the real economy. India's manufacturing activity rose to a 14-month high in June, with the HSBC PMI climbing to 58.4 from 57.6 in May—well above its long-run average of 54.1. Yet the Index of Industrial Production (IIP) tells a more muted story. Industrial output grew just 1.2% in May, the slowest pace in nine months. Manufacturing, which accounts for nearly 78% of the index, expanded only 2.6%, down from 3.1% in April and sharply below the 5.1% growth seen a year earlier. As capital, policy, and global demand converge, investors are betting that India's next manufacturing leap will be built not just on cost arbitrage—but on capability.
