Godrej Group's Internal Realignment Approved by CCI

Godrej Group's Internal Realignment Approved by CCI

Godrej Group Realignment Approved by CCI

The Competition Commission of India (CCI) has approved the proposed internal realignment within the Godrej group. This realignment involves the restructuring of interests, legal ownership, and management of various entities within the group. The move is being undertaken as part of a Family Settlement Agreement (FSA) signed by the four family branches in April 2024.

The realignment will encompass entities like the GILAC Group and G&B group entities. The GILAC Group includes companies like Godrej Industries Ltd, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and AstecLifesciences Ltd. The G&B Group includes entities like Godrej & Boyce Manufacturing Company, Godrej Holdings, Godrej Infotech, and RKN Enterprises.

This strategic move aims to streamline operations and consolidate governance structures within the conglomerate. The target enterprises forming part of the proposed combination include the Godrej Industries & Associate Companies (GILAC) Group entities and G&B Group firms.

The Godrej family, which has been at the helm of the 127-year-old conglomerate, announced in April 2024 that it had reached an agreement to split the group. Adi Godrej and his brother Nadir will retain Godrej Industries, which has five listed firms. Their cousins, Jamshyd and Smita, will receive the unlisted Godrej & Boyce and its affiliates, along with a land bank, including prime property in Mumbai.

The group has been divided between two branches of the founding family. Adi Godrej (82) and his brother Nadir (73) are on one side, while their cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) are on the other. This realignment is expected to bring greater clarity and efficiency to the group's operations.