Indian family biz offer highest returns in Asia

Indian family biz offer highest returns in Asia

The Credit Suisse building in Zurich, Switzerland.

According to the report, family businesses have given a staggering 261 per cent cumulative return in the past 10 years to the Asian economies, outperforming local benchmarks in seven out of the 10 markets studied in the continent.

“India has the highest percentage of family businesses in Asia with as many as 67 per cent the highest in 10 Asian countries that were surveyed,” says the Asian Family Businesses report released by Credit Suisse.

“Out of the 983 listed Indian companies, as many as 663 are family businesses, and they account for half of all corporate hirings, concentrated in the consumer discretionary, consumer staples and consumer healthcare sectors,” the report says, observing that fixed asset investment from family businesses has consistently grown stronger versus non-family businesses since 2006.

However, the Indian family businesses that managed a 15.8 per cent total return CAGR from 2000 to 2010, underperformed the broader market, which delivered 19.3 per cent CAGR over the last decade, it notes.

Most Asian countries preferred to be in the traditional sectors while India was one of the three countries that witnessed higher concentration of technology-related family businesses due to the technology-driven industrial structure in these economies, the report said.