Godrej Family Announces Split of Conglomerate
The Godrej family, founders of the 127-year-old Godrej Group, has announced a split of the conglomerate. The family has been divided into two branches, with Adi Godrej and his brother Nadir on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other.
Godrej Enterprises Group
The Godrej Enterprises Group, comprising Godrej & Boyce and its affiliates, will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita's daughter Nyrika Holkar will be the executive director. This group will also hold the land bank, including 3,400 acres of prime land in Mumbai.
Godrej Industries Group
The Godrej Industries Group, which includes the listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences, will have Nadir Godrej as chairperson and will be controlled by Adi, Nadir, and their immediate families.
Ownership Realignment
The family termed the split as an "ownership realignment" of the shareholdings in the Godrej companies. The statement said, "The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members."
History of the Godrej Group
The Godrej Group was founded in 1897 by lawyer-turned-serial entrepreneur Ardeshir Godrej and his brother. Over the years, the helm of the group came to the children of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita).
Real Estate Holdings
Real estate worth crores of rupees, mostly in prime land in Mumbai suburbs, will remain under Godrej & Boyce. The Vikhroli property, a 3,000-acre parcel in Mumbai, was bought by Pirojsha Godrej at a public auction in 1941-42.
Future Outlook
Jamshyd Godrej said, "Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high-tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses."
Nadir Godrej said, "Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause - the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better - continue to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility.