Bannari Amman Group (BAG) was among the largest industrial conglomerates in South India with production, trading, distribution and financing corporations in the group. This group had the legacy of running business ventures over the past 40 years. Starting as a group of related and unrelated businesses in a purely family-owned entity, now the group had three publicly listed firms and over 15 family -owned businesses in its fold. Following the custom that the eldest in the family headed the group, the group performed under the leadership of the chairman. The chairman of BAG had a day long meeting with the unit heads of BAG on January 6, 2011 to review whether the business heads were capable of handling their units by themselves, what was the appropriate method of hand holding for the brand new generation of entrepreneurs and how would the unit heads behave to optimize performance of their units.
The businesses were complementing each other to a specific degree, although he discovered that the units of the business group emerged as independent entities. For this reason, the businesses of the group enjoyed an inherent edge. As he looked at the challenges the units would come across under new direction in the approaching years, he was also aware of the need to develop the vision across the spectrum of components small and large, main companies and the smaller stragglers. Identify the businesses that might be strengthened over time and the chairman looked for processes to keep the group synergies set up.
PUBLICATION DATE: October 17, 2011 PRODUCT #: W11466-HCB-ENG
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