The Business Rajahs

The end of the British Raj in 1947 witnessed the creation of a new power in Indian business: the corporate dynasty. Aided by solid political and business connections, India's versions of the Vanderbilts and Rockefellers set up conglomerates that swelled and diversified without having to respond to consumer demand. With exclusive access to government licenses and plenty of regulations to keep competition at bay, businesses thrived. This arrangement suited a society used to the rule of maharajahs, where princes assumed divine right to rule and clung to a sense of entitlement whether deserved or not.

Empires were built. Names like Tata, Birla, and Bajaj became household words. Such companies grew to account for 15% of the Indian economy, and their products penetrated the lives of consumers in everything from cars to clothing. When the grand patriarchs died, they handed down their empires to their sons. And when the sons died, they handed down their empires to their sons. Yet now, with the second and third generations at the helm, it's a whole new India and a whole new ball game.