India has 108 publicly-listed family-owned businesses, third highest in the world, while China tops the tally with 167 such companies followed by the US which has 121. As per the Credit Suisse Research Institutes (CSRI) latest “CS Family 1000″ report, with an average market capitalisation of USD 6.5 billion, India ranks 5th in Asia Pacific excluding Japan, and 22nd globally, in terms of average m-cap.
In terms of average size, the ranking changes much more in favour of developed markets. Average market capitalisation of family-owned companies is greatest in Spain (USD 30 billion), the Netherlands (USD 30 billion), Japan (USD 24 billion) and Switzerland (USD 22 billion), the report that covered close to 1,000 family-owned, publicly-listed companies by region.
Indian companies surveyed are more mature, with 60 per cent of family businesses in their third generation compared to 30 per cent of Chinese companies. According to Credit Suisse, the financial performance of family-owned companies is also superior to that of non- family-owned peers. Furthermore, family businesses appear to focus more on long-term growth and they have outperformed peers in terms of share price returns.