Ensuring Smooth Business Succession: The L. M. Thapar Legacy
- Vaishnavi Majji
- Oct 17
- 1 min read
Succession planning is pivotal for the continuity of family-run businesses, particularly in India, where personal and professional lines often intertwine. The case of Mr. Lalit Mohan Thapar, former chairman of the L. M. Thapar Group (owned companies such as Crompton Greaves, BILT, and JCT Mills), exemplifies how a well-crafted Will can facilitate a seamless leadership transition.
Mr. L. M. Thapar, a prominent industrialist, took proactive measures to prevent the succession conflicts that frequently affect Indian business families. In 1997, he divided parts of his business empire among his nephews- Vikram, Gautam, and Karan Thapar. Subsequently, in 2005, he formalized his succession plan by transferring his voting rights, shares, and personal assets to Gautam Thapar through a legally binding Will.
Upon Mr. L. M. Thapar’s passing in 2007, the clarity of his intentions, supported by legal documentation, enabled a smooth transfer of authority to Gautam Thapar. Under Gautam’s leadership, the group modernized and diversified, underscoring the advantages of a conflict-free succession.
This case underscores the importance of clear succession planning in preserving both family harmony and business continuity. For Indian entrepreneurs, it serves as a compelling reminder of why estate planning should be a cornerstone of business strategy.
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