Well-regarded Indian entrepreneur, Dilip Piramal, is best known for pioneering VIP Industries—Asia’s largest luggage manufacturer. But after decades at the helm as chairman, Piramal recently announced his decision to sell his family’s 32% stake, marking the end of an era for the iconic travel brand, as well as a major turning point for Indian business culture.
Piramal’s business move is a prime example of the crossroads many Indian empires experience today. As business founders reach retirement and are ready to step away, they often assume their children will naturally inherit the reigns. Yet, Piramal’s story signals the harsh reality of what really happens when children are unprepared or unwilling to take the business next. In many cases, a once-stable business can be thrown into uncertainty, threatening the overall future of operations.
“Dilip Piramal’s decision to sell VIP Industries after 53 years underscores a growing reality that succession cannot be assumed as a family affair. When the next generation lacks interest or preparation, defaulting to tradition can lead to stalled growth, governance gaps, and lost market value,” Ankit Shrivasta said, Founder & Managing Partner of Enventure, a U.S.–India private equity firm specializing in generational planning for family-run businesses.
Founded in 1971 and headquartered in Mumbai, VIP Industries has grown into one of the world’s most sought-after luggage companies. Under Piramal’s leadership, the business grew into a household name across Asia, contributing to economic growth, notable innovation, and customer satisfaction. But even with a solid legacy like his, Piramal’s departure exposes the all-too-common dilemma of assumed family succession.
“Succession is not inheritance; it’s a strategic choice that shapes the future of an enterprise. Preserving legacy isn’t about keeping a surname at the helm—it’s about choosing leaders best equipped to drive progress. Competence over convention is the only way to ensure resilience in the face of generational change,” Shrivastava added.
A father himself, Piramal who has been transparent about the challenges of transferring ownership to his daughters. He has explained their interests in wanting to pursue other personal endeavors, resulting in Piramal to sell to private investors completely separate from the family, and in turn, losing years of an identity he cherished since the very beginning.
The issue isn’t isolated to VIP Industries alone. In a recent report by HSBC Global Private Banking, results show only 7% of Indian heirs feel a sense of obligation to take over the family business. Meanwhile, nearly 85% of Indian corporations recognize the importance of a succession plan, even though only a mere 18% of them have a formal plan.
Without intentional planning, many businesses risk significant consequences, such as leadership gaps, loss in revenue, decreased morale, and delay in growth. And especially in Indian-specific family businesses, resorting to age-old traditions also highly impacts the family dynamics, straining relationships and fraying the familial culture.
The disconnect between business founders and their kids is also a growing trend. Today’s heirs often pursue careers elsewhere, where personal choice and identity have been the backbone of their generation. More and more young adults are also entering an era where the market is expanding to many other sectors, leading them to paths beyond entrepreneurship.
If the goal is to preserve a legacy, business founders must look past the easy way out and narrow their focus toward strategy and continuity. While the outdated view of keeping a business “in the family” was once an ideal mentality, businesses today can no longer avoid the deeper conversation.
While Piramal’s exit closes the chapter of VIP industries, it does not end the ongoing debate about Indian family businesses. Ultimately, entrepreneurs cannot guarantee the bloodline, because as Piramal perfectly exemplifies, it means leaving behind a personal dream. Instead, maybe the future belongs to those who plan for it, not to those who are born into it.