Structured Succession Planning for RK Infrastructure

RK Infrastructure Family Business Succession

Background:
RK Infrastructure, a leading construction firm based in Mumbai, has been managed by the Patel family for over 40 years. Under the leadership of the patriarch, the company had grown exponentially and established itself as a leader in the construction industry. However, as the patriarch neared retirement age, the question of succession became increasingly important. The younger generation, though well-educated, lacked the hands-on experience needed to lead such a large organization.

Challenge:
The major hurdle was the absence of a formal succession plan. Although the younger generation had a strong academic background, they lacked practical experience in managing the diverse operations of the company. The absence of clear leadership pathways led to confusion and uncertainty about the company’s future.

Solution:
FBTM was brought in to address these issues and help facilitate a smooth transition. We began by creating a formal succession plan that clearly outlined leadership roles and responsibilities for the next generation. Additionally, we established a governance structure to improve decision-making processes and ensure that the company would be managed efficiently after the transition. To ensure that the younger family members were adequately prepared, we implemented training programs focusing on critical aspects such as financial management, negotiation skills, and crisis management.

Results:
The implementation of the succession plan was smooth, with the younger generation stepping into leadership roles with confidence. The governance structure helped streamline decision-making, and the business saw a 15% increase in profitability during the first year after the transition. The RK Infrastructure family was able to maintain the company’s competitiveness while ensuring that the legacy of the business would continue under new leadership.