The Hindu Business Line : ‘Succession planning, a thorny issue in family biz’

New Delhi, March 2 Barclays Wealth aims to be among the top three players by assets in the Indian private wealth management industry over the next three years. Its private wealth management business was formally launched in the country in November 2008.

Outlining the business plans, Mr Satya Narayan Bansal, Chief Executive of Barclays Wealth, India told Business Line that “inter-generational wealth transfer” would be a key offering for its high-networth clients in this market.

“This could be done through setting up of family trusts or any appropriate vehicle for succession planning,” he said. Barclays Wealth plans to increase its headcount on the private wealth management group from about 80 now to over 100 bankers in the next three to four months.

In major cities

Barclays Wealth has presence in five major cities — Delhi, Mumbai, Kolkata, Bangalore and Chennai. It is not looking to have a presence in tier-II cities for now even though some of them are being serviced from existing offices.

Meanwhile, the findings of a global survey, commissioned by Barclays Wealth involving 2,300 affluent and wealthy investors, released today showed that family business model is likely to survive the economic downturn and emerge as a stronger business model.

These 2,300 respondents included 835 from the Asia-Pacific region, of which 197 were of Indian origin (155 persons were high networth individuals located within India).

The thorny issues to the survival of family businesses, the survey showed, were succession planning and family governance.

“While interacting with many of the Indian business families, we have observed that this aspect is being identified as the ‘key gap’, which needs to be addressed early enough before the same being thrust upon them,” Mr Bansal said.

He also said that clients in India have been increasingly looking forward to have portfolio diversification outside India.

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