Family not first: When MV Subbiah was ‘demoted’ in the interest of Murugappa business

By one’s ability to stay humble and willingness to sacrifice to ensure unity, says Murugappa patriarch MV Subbiah.

Four years into his tenure as the chairman of the Murugappa Group, MV Subbiah was, in a way, ‘demoted’. Asked to continue as a board member, the family patriarch took it in his stride, making way for a professional from outside as the interim chairman, till the board selected his cousin MA Alagappan to take over the position.

“It wasn’t a problem because it was still a member of the family,” Subbiah said at a recent event. “There was conflict in my point of view. I could have continued as chairman if I wanted, but then I might have broken the family.” And for Subbiah, family and Indian values are the two key factors that help any business flourish. “We don’t emphasise much [on values] in business schools these days. This is why I say, understanding our culture is extremely important. One of the most important values is humility,” he said.


For the greater good
The other, Subbiah said, was sacrifice. At times, in family businesses, you may have to make sacrifices for the sake of keeping everyone together.

Recounting his example, Subbiah said he gave up the reins four years before his time, as the board of directors, which included three independent directors, asked him to step down from the group chairmanship.

“The directors called me and said, ‘The way you are going about it, you might damage the family’. Therefore, we would like you to step down from the chairmanship and conti nue as a boa rd member, which I did.”

He added, “I was, if you prefer, ‘demoted’…But in the interest of the family and the way you are brought up with family values, you step down and allow that to happen. So, the conflict resolution is part and parcel of the process of the entire board of the family,” he said.