There is an anticipated amicable split within the 127-year old Godrej empire, a move expected to have a positive impact on the group's stocks. This division is viewed favorably by analysts as it will provide clarity by assigning defined roles and responsibilities, potentially leading to a rerating of the Godrej group. The split involves various businesses under the Godrej umbrella, ranging from real estate with Godrej Properties to consumer products featuring well-known brands like Godrej Powder Hair Dye, Cinthol, Godrej Fair Glow, Godrej Ezee, and Godrej Shikakai soap.
According to market veteran A K Prabhakar, the clear division within the Godrej family is seen as a positive sign for investors, with the move expected to remove any uncertainties affecting the stocks. The split will involve listed entities such as Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences, with Nadir Godrej and Adi Godrej, along with their immediate families, taking chairperson positions to oversee these companies. In contrast, another faction of the Godrej family will have control over entities like Godrej & Boyce Manufacturing Company, Godrej Holdings Private Limited, and Godrej Infotech Limited, among others.
U R Bhat, a co-founder & director at Alphaniti Fintech, noted that the split within the Godrej group is notable for being amicable and devoid of any negative sentiments among family members, which is crucial for maintaining stability within the businesses. The split, according to Bhat, will likely not cause significant immediate reactions in stock prices, as the companies continue with their regular operations under existing management. Independent market analyst Ambareesh Baliga also emphasized the dignified manner in which the separation was conducted, highlighting that the process was discreet and devoid of public disputes normally associated with family splits.