A clear succession plan is the biggest challenge for Haldirams, says Pavitra Kumar

Pavitra Kumar in her book Bhujia Barons published by Penguin captures the untold story of how Haldiram built a Rs 5,000-crore empire. Kumar tells Business Today about the triumphs and challenges that the family run business faces.Why did you choose to write on Haldirams?

The Haldiram story is an inspiring one. It started with a young man, Haldiram, in the desert town of Bikaner. In the beginning it was a just small snacks shop and today the business has expanded into a Rs 5,000-crore empire, one of India's superbrands. I wanted to write a book about an indigenous business and the challenges that a family business faces in the modern times. I also wanted it to be a journalistic enquiry into the family members and the leaders behind the business. The Haldiram brand was the perfect story to follow…inspirational, yet human in that they had to face and overcome several challenges.

Q. What has been the most fascinating aspect of the family for you?A. I think the whole book and all the characters were fascinating. In fact the differences between the brothers and cousins in the book were what made it interesting to write. If I had to zero in on one thing, I would say their unending passion for the business and strong survival instinct was most fascinating. Many times, they had to stand strong against the tide of resistance, both internal and external. In spite of their various differences, each one of them had undying love for the business. The struggle of the brothers against one another, yet their loyalty towards the business really stood out for me.

How do you see family run business such as Haldirams evolving from here on? What will be the biggest challenges that Haldirams will face in times to come?The future of the brand is only upwards. It is a brand with strong recall, a huge loyal customer base and a growing youth market. It is also a brand that understands its strengths and plays by it. For instance, instead of diluting their talents and efforts, they have decided to mainly focus on the education sector. Recently Haldiram's in Delhi have also entered the education space but mostly with the mindset of making a difference in society and offering children holistic education. They do face challenges that they are currently mitigating such as modernizing their work culture and moving towards a more professional and inclusive environment. The biggest challenge they face in the years to come is having a clear succession plan where a constitution is set in place enabling future family members to join the companies under certain guidelines that would ensure the success of the business.Q. How do you see the family feud affecting the brand Haldiram?

A. I think the feud has been a part of their heritage for years now. Both the Delhi and Kolkata businesses are working on trying to find a resolution as the realisation definitely is that the brand battle is holding them back on some level. Working towards a compromise is in their best interest.

Q. How different or similar is Haldiram to other family-run businesses in India?A. The entire Haldiram group faces many challenges that any family run business in India might face as well as some unique challenges of its own. Modernisation is always a challenge with family-run businesses, both in terms of processes and automation. Another one is a clear succession plan. As mentioned in the book, most businesses fail after the third generation and a challenge is to put a system in place that allows family members to continue to grow with the business and help it grow further but also one that takes into account experience, competencies and motivation. The Haldiram group is unique in that they also face challenges of infighting and extensive court cases with regards to their brand name from within the family. These are issues that need to be resolved before the family can consider an IPO.