August 14th, 2010 
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The Tata Group, which is the oldest and best-known Indian business, has decided to make a difference by not opting for a legal heir to its chairman, 72-year-old Ratan Tata who is due to retire by end-2012.
Ratan Tata has no apparent successor, which means that the business founded by his great-grandfather is left potentially vulnerable presently.
From in.news.yahoo.com:
But his decision to look within the company, as well as abroad, will go some way in dispelling some of the negative notions of family firms in India, highlighted by the bitter five-year feud between the billionaire Ambani brothers.
“Change has taken a while; they’re evolving relatively slowly because business is seen as an emotional link between founders and their assets, and they tend to want to pass them on to the next generation,” said Frank Hancock, managing director of advisory at Barclays Capital and an India veteran.
The Ambani feud has been held up as an example of how blood ties can affect business: lack of succession planning, opacity, and erosion of shareholder value.
These are perceptions India’s top family firms, which have dominated the country’s corporate landscape for over a century, are trying to shake off as they face more competition, tighter regulations, and a new generation of leaders takes the reins.
Michiel van Voorst, senior portfolio manager at Robeco in Hong Kong, which has 30 million euros ($38.7 million) of a 700-million-euro fund invested in Indian firms, said that succession is a concern as it is worrying to see someone put in a seat not because of competence but family ties.
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