All India Rubber Industries Association conducted exclusive webinar under Knowledge Series: Rubber & Beyond on topic Beyond the Founder: Future-Proofing Your Rubber Business with Smart Succession Planning on July 15, 2025 by speaker Mr. Samir Sanghvi, Co-founder, InCorp India. The webinar is part of a knowledge series covering technical and financial topics. The focus of this webinar was on succession planning for family run businesses and MSMEs.
Samir Sanghviji began his presentation by offering condolences and emphasizing the importance of addressing pending agendas when someone passes away unexpectedly. He discussed the importance of succession planning for family businesses and wealth preservation and emphasizes that succession planning is not just about distributing wealth but creating a lasting legacy. The highlight of the webinar was to make aware about the critical challenge faced by many family run and legacy MSMEs - ensuring smooth leadership transition while maintaining continuity and preserving business legacy.
He explained the need for robust structures beyond traditional wills, as wills can take months to execute after death. He further presented statistics showing how family wealth often diminishes across generations without proper planning, and notes that only 21% of family businesses have strong succession plans in place and outlined various tools for succession planning in India, including wills, trusts, and family settlement agreements, stressing the importance of expert advice to create comprehensive plans that protect assets and family values for future generations.
He explained the differences between wills and private trusts for estate planning. He recommends probate for wills to ensure legal documentation of asset transfer. Private trusts offer more control and protection, allowing assets to be managed and distributed according to the settler's wishes while they are still alive. Samir outlines the structure of trusts, including the roles of settler, trustee, and beneficiaries, and discusses the tax implications of different trust types. He emphasizes that irrevocable trusts provide maximum protection for beneficiaries but limit the settler's control over assets. Samir concludes by comparing wills, revocable trusts, and irrevocable trusts in terms of succession planning, asset protection, and legal flexibility.
He discussed the importance of a balanced approach in business succession planning. He emphasizes embedding core family values, implementing merit-based succession, and creating a robust financial and legal framework. He stresses the need for investing in successor training and development, as well as prudent wealth management through family trusts and professional family offices and also highlighted the significance of creating a family constitution as a soft infrastructure for managing family businesses, especially before an IPO.
The session was concluded by addressing questions about handling succession when separating business entities from fixed assets and the mandatory registration of trusts.