The Godrej Group, worth Rs. 1.76-lakh-crore, is reportedly in the advanced stages of crucial negotiations to end the formal division of its diverse businesses.
Conglomerate is known for businesses like engineering solutions, home appliances, security solutions, agricultural products, real estate, and consumer products.
The Godrej family has two main groups - one is Godrej industries & Associates and the other is Godrej Industries & Associates, led by Adi Godrej and his brother Nadir. Godrej & Boyce Manufacturing Company is a sister company, with cousins Jamshyd Godrej and Smitha Godrej Crishna at the helm.
The family council is reportedly discussing two crucial points - one involving the use of the Godrej brand name after the split, including possible royalty payments, and land valuations currently held by G&B.
Top investment banker Nimesh Kampani and corporate lawyer Zia Mody are advising Jamshyd Godrej, while banker Uday Kotak and Cyril Shroff's legal firm Cyril Amarchand Mangaldas have led discussions from the Adi Godrej side. officials said that Pirojsha Godrej, the son of Adi Godrej and chairman of Godrej Properties, had also been involved in the discussion.
In G&B, there are five family branches in the Godrej family, including Rishad Godrej, Nadir Godrej, Jamshyd Godrej, Smita Crishna and Adi Godrej, while the Pirojsha Godrej Foundation holds around 23 per cent.
Godrej Industries Limited, a holding company with broad interests in consumer goods, agriculture, real estate, chemicals, and financial services, serves as a incubator for new businesses. Astec LifeSciences owns five listed firms - Godrej Estate, Godrej Consumer Products, Godrej Property, Godrej Agrovet, and Godrej Industries. The five, together, had a market capitalisation of Rs 1.76 lakh crore on Friday. The five listed firms generated nearly Rs.42,172 crore in revenue and Rs.4,065 crore in profits in FY23.
Godrej Industries promoter-holding is divided among 28 family members. Between them, Jamshyd Naoroji Godrej and Nyrika Holkar have a combined total of 12.65 per cent and 8.01 per cent.
Godrej Consumer Products is the biggest listed company, with a market capitalisation of Rs. 1.01 lakh crore as of Friday.
Godrej Consumer Products Limited said in Q1 FY24, its consolidated net profit fell 7.6 per cent to Rs 318.82 crore in the April-June quarter of fiscal year 2024, from Rs 345.12 crore in the same quarter a year ago.
The total revenue for the first quarter was Rs. 3,448.91 crore, up 10 per cent from Rs. 3,124.97 crore in the year-ago period.
GCPL's revenue rose 8.43 per cent in the June quarter to Rs. 2,005.48 from Rs. 1,849.41 a year ago.
At a gain of 23.4 per cent, the FMCG company reported an increase in earnings before interest, tax, depreciation and amortization at Rs 642.8 crore and EBIDTA margin at 18.6 per cent, up 240 basis points from the same quarter last year.
GCPL said it had spoken with the board of directors in a statement.
Godrej Industries reported a 13% year-on-year decline in its consolidated net profit in June to Rs 178 crore from Rs 204 crore in the year-ago period. The revenue for the quarter rose 15 per cent to 4893 crore, up 15 per cent from 4242 crore in the same period last year.
The sales growth came on the back of 10 percent YoY volume growth in constant currency, the company said in its filing to the exchanges. The consolidated EBITDA grew 28%, compared to a year earlier.
The home care sector grew 14 per cent, the personal care sector's growth was 2 per cent, while chemical's revenue for the quarter of June 2023 was down from Rs 1,000 crore in the year-ago period. The exports of Q1FY24 rose to Rs 214 crore.
Q1FY24's real estate sales have resulted in a total booking value of Rs.2,254 crore with a 2.25 million square feet of area sold during the quarter. The company added four new projects with an expected saleable area of 3.7 million square feet.
The shares of Godrej properties rose 2% yesterday as the developer buys 109 acres of land parcels in Nagpur.