"Wadias leave executive roles to pro,” noted a five-column headline in The Economic Times (ET) of April 8, 2021. "The Wadia family will stay as shareholders in the aviation-to-business conglomerate and not hold any executive roles in group companies as part of a strategic decision taken by the promoters to drive growth and ensure better shareholder returns,” stated the write-up citing "a highly placed group official.” "The focus is to build competent organizations and attract the best talent pool to do so,” the daily quoted an unnamed group director.
The family featured prominently in the newspapers when Jeh Wadia stepped down this March as managing director of GoAir, an airline he founded, and in April from the 142-year-old Bombay Dyeing and Manufacturing Company Limited started by Nowrosjee Wadia in 1879.
A former chief executive officer of Spirit Airlines, Ben Baldanza, who has been advising the airline from 2018 was named GoAir’s non-executive vice-chairman. He "will work directly with” the airlines’ chief executive officer (CEO) and chief financial officer (CFO), stated the Business Standard (BS) of March 27. There is talk of taking the airline public.
The Mint of March 23 quoted the airline as stating, "Among other initiatives, a key element of this plan, forged over weeks of discussions and consultations, was to strengthen the management of the company by bringing on board proven industry professionals, a strategy that has worked well with the group in its other ventures, including Britannia.”
The airline quotes GoAir’s chairman Nusli Wadia as stating, "We are happy that Ben has accepted the position of vice chairman. His experience in creating the first ULCC (ultra low cost carrier) in the US, turning it profitable and successfully leading its IPO (initial public offer) are of great value, as GoAir embarks on the next phase of its growth journey.”
The day-to-day management of Bombay Dyeing, which was looked after by Jeh since April 2011, will be handled by the company’s CEO and CFO under director Minnie Bodhanwala, stated BS (April 2, 2021).
The Wadia family’s enterprise was started by Lovji Nusserwanjee Wadia 285 years ago in 1736 as a successful ship building venture. The group today comprises companies such as Bombay Dyeing, Britannia, GoAir, Bombay Burmah Trading and National Peroxide.
The transition from family managed businesses to professionally run ones is fraught with risks. The founding family brings the entrepreneurial zeal that companies need in their initial phase. Their drive, determination and resourcefulness transform a business that may have started on a dining table or a garage into a giant conglomerate. But if the founders want to keep up the pace they have to look outside the family to find the management expertise and talent they require to sustain their growth. Many transitions fail because the owners do not wish to hand over control or do not know how to. A handful succeed and reap rich returns for doing so.