FAMILY BUSINESSMANAGEMENT

A Project Report
Presented to the Faculty of the
School of Management & Entrepreneurship
AURO University
Surat

In Partial Fulfilment
Of the Requirements for the Degree of
Master of Business Administration

Submitted by:
JIGAR PATEL
SAGAR PATEL

Submitted to:
MR. VIMAL BABU
AUGUST 2014

ASHOK SHYAM INDUSTRIES

Introduction
Ashok Shyam Industries is a leading business in cloth trading based in Surat and
Amritsar. Being established in 1960, it has touched reasonably great heights and secured
a strong position in the market of trading ensuring excellence in quality. The textiles
industry is not a mere process but also an art of delivering quality cloth, which is
achieved through efficient R&D, close supervision, and production technology. Ashok
Shyam Industries have been successfully meeting the quality standards and exceeding
customer satisfaction through dedication and hard work.

Background
Origins date back to Amritsar, Punjab- initiated by Shri Harbans Lal Kandhari in the year
1939 dealing in trading of clothes i.e. DUPATTA via Amritsar to Surat. The name of the
firm was Harbans Lal Industries with initial capital of 1 lakh at Katra Ahluwala,
Amritsar

The business expanded with trading in:

Threads

Sarees

Dress Materials

Suit Pieces

Trained his elder son in 1968 to bring him to textiles with all expertise required

Family Chart

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Business Expanded

With the advent of time, Mr Ashok Kandhari expanded the business in Surat with another
shop at Abhishek Market Ring Road in trading business with all his experience and
knowledge

Current Shops at RKT Market, Ring Surat, Surat

Mr Shyam Kandhari also made good ties in Amritsar with around 30 parties dealing in
textlies

Scaling of Business
The Textile Business had a growth during 2nd generation because:

Great commitment from both sons as interest factor lied in family business

Efficient succession planning to Mr Ashok Kandhari (to Surat acting as diversification )

Good managerial and Technical Know how of textiles

Realized the prospect in Surat at early stage

Mutual understanding in solving conflicts with father acting as a facilitator

They imbibed the core values of business given by the first generation

Hotel Business: Kandhari Assosiates

Textiles Business reached the saturation point and Mr Ashok Kandhari felt the need to
diversify further and entered into Hotels (Northern India)

The first property he purchased was Valley View Hotel at Mussorie with the name of
the firm Kandhari Associates in 1997

The Second property was Pinewood Hotels in Shimla

Good back support was given by younger brother in the diversification

Mr Shyam Kandhari with his two sons found a good market in Amritsar and thus
diversified into the same Textlies business

DIVERSIFICATION

The profits earned by the two hotels was invested into Real Estate under Kandhari Associates
only.

They came under stream of Properties providing lands for Hotels and a tie up with Mona
Aeroview in 2010

Both the firms(A Real Estate& hotel Consultant) are Real Estate brokerage firm in India

Operations are in Delhi and Punjab.

Three key areas

Purchase

Rent

Lease

Third Generation in Business: Diversification

Mr Rahat Kandhari is handling the financial affairs of entire Family Business as he is CA

by profession

Mr Gaurav Kandhari joined Textiles in 1991 with his father while Mr Sumit Kandhari
joined the same profession in 1997

They diversified in the year 2006 with two factories in production area of Textiles at
Batala Road Amritsar

S.G International (weaving unit in Amritsar)

Shri Krishna Embroideries (Embroidery unit in Amritsar)

The initial capital was 25 Lakh

As in current scenario they have 20 parties with 15-20% profit margin

Why all this Possible?

Good efficient Leadership style and successful succession planning in business

Correct diversification on the basis of geographic and market conditions

Imbibed the ethical values laid down by the previous generations

Good Family Communication

Mutual conflict management with clear rules and policies

Clear crystal distribution of profits and losses across all family members

GOVINDAM- MAAKHAN BHOG

In 1986 Sohan Lal Mohta with Sukhdev Rathi opened Maakhan Bhog. Sohan Lal Mohta
was handling the shop in Nanpura. But there was lot of conflicts between both the
partners. Then they mutually decided to split. Sohan lal Motha as took its share of profit
from the business.
After that Sukhdev Rathu re-launched Maakhan Bhog in 1987.
Sohan lal Motha went back to Amravati (Maharashtra). Then after he open a sweet shop
as Bikaner Bhujia in Amravati. He struggle a lot but he was not happy with that sweet
shop.

Family Chart

GOVINDAM

MAAKHAN BHOG
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But he was not happy so he wanted to return back to Surat.

So in 2000 he returned back and opened Govindam at Rangeela Park.

According to him at that time Rangela Park was the most succesfull market of Surat.

When they decide to open this shop, they wanted to open it as a Sweet shop but due to
lack of space they decided to go for something innovative.

They understood the need of Surti people and targeting their emotions they ventured in
producing fast food items

Their USP is providing best quality food at cheaper price

Starting 3-4 mothns they struggled but due to their location and due to the quality of food
provided by them, they started earning profit.

At present Giriraj Mohata assits his dad in handling it.

They are at present thinking of diversification.