The Godrej group has been break up between two branches of the founding household. (FILE)
New Delhi:
The founding household of 127-year-old Godrej Group, which spans from soaps and residential home equipment to actual property, has reached an settlement to separate the conglomerate, with Adi Godrej and his brother Nadir preserving Godrej Industries that has 5 listed companies, whereas cousins Jamshyd and Smita getting unlisted Godrej & Boyce and its associates in addition to a land financial institution, together with prime property in Mumbai.
The group has been break up between two branches of the founding household, with Adi Godrej (82) and his brother Nadir (73) on one aspect and their cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) on the opposite, in accordance with an announcement issued by the group.
Godrej Enterprises Group — comprising Godrej & Boyce and its associates which have a presence throughout a number of industries spanning aerospace and aviation to defence, furnishings and IT software program — might be managed by Jamshyd Godrej as chairperson and managing director. His sister Smita’s daughter Nyrika Holkar, 42, would be the govt director.
Their households will management this arm that additionally will maintain the land financial institution, together with 3,400 acres of prime land in Mumbai.
Godrej Industries Group — which incorporates the listed firms – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences — may have Nadir Godrej as chairperson and might be managed by Adi, Nadir and their speedy households.
Pirojsha Godrej, 42, son of Adi, would be the govt vice chairperson of GIG and can succeed Nadir because the chairperson in August 2026, the assertion stated.
In the assertion, the Godrej household termed the break up as “an ownership realignment” of the shareholdings within the Godrej firms.
“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,” it stated.
“This will help maximize strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.” Both Groups will proceed to make use of the Godrej model and are dedicated to rising and strengthening their shared heritage.
Lawyer-turned-serial entrepreneur Ardeshir Godrej and his brother in 1897 succeeded at locksmithing after failed ventures into hand-fashioned medical gadgets.
Ardeshir didn’t have any youngsters, and so the group was inherited by his youthful brother Pirojsha. Pirojsha had 4 youngsters – Sohrab, Dosa, Burjor and Naval.
Over the years, the helm of the group got here to the kids of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita) as Sohrab had no youngsters whereas Dosa had one youngster Rishad, who had no youngsters.
To allow the break up, the 2 sides stop the boards of firms in rival camps. So, Adi and Nadir Godrej resigned from the Godrej & Boyce Board, whereas Jamshyd Godrej left his seat on the boards of GCPL and Godrej Properties.
Unconfirmed experiences say Adi and Nadir Godrej will divest their stakes in Godrej & Boyce to the opposite department. Jamshyd Godrej and his aspect of the household will switch pursuits in Godrej Consumer Products (GCPL) and Godrej Properties to their cousins by way of a household association.
Real property value crores of rupees, principally in prime land in Mumbai suburbs, will stay underneath Godrej & Boyce (G&B), and a separate settlement might be labored out to control the possession rights.
It owns 3,400 acres of land in Mumbai, together with a 3,000-acre parcel in Vikhroli, Mumbai. The Vikhroli land by some estimates has a growth potential of over Rs 1 lakh crore. It can develop 1,000 acres, whereas about 1,750 acres are coated with mangroves and is the vacation spot of uncommon crops and birds. About 300 acres of land have already been encroached upon.
The Vikhroli property was purchased by Pirojsha at a public public sale from the Bombay High Court receiver in 1941-42. It was beforehand owned by a Parsi service provider Framjee Banaji, who purchased it from the East India Company within the 1830s.
Adi is at the moment chairman of Godrej Group. His brother Nadir is chairman of Godrej Industries and Godrej Agrovet. Their cousin Jamshyd is chairman of the unlisted Godrej & Boyce Manufacturing firm. His sister Smita Crishna and Rishad Godrej additionally maintain a stake in Godrej & Boyce, which owns a lot of the property in Vikhroli.
A few years again, Jamshyd roped in funding banker Nimesh Kampani and lawyer Zia Mody to advise him on separating the land possession. Kotak Mahindra Bank’s Uday Kotak and Cyril Shroff of authorized agency Cyril Amarchand Mangaldas have been helping Adi.
According to the assertion, the realignment might be applied after the related regulatory approvals have been obtained.
“Godrej Enterprises Group (GEG) comprises Godrej & Boyce (G&B) and its affiliates, which have a presence across multiple industries spanning aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, EPC services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, IT, software as well as infrastructure solutions.
“This group will now be managed by Jamshyd Godrej, chairperson and managing director, Nyrika Holkar, Executive Director, and their speedy households,” it said.
Godrej Industries Group (GIG), 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 Godrej, Nadir Godrej, and their immediate families.
“Pirojsha Godrej would be the Executive Vice Chairperson of GIG and can succeed Nadir Godrej because the Chairperson in August 2026,” it said.
Commenting on the future outlook, Jamshyd Godrej said: “Since 1897, Godrej & Boyce has at all times been pushed by the robust goal of nation constructing. With this future-facing household settlement now in place, we are able to additional drive our development aspirations with fewer complexities and deal with leveraging our core strengths in high-tech engineering and design-led innovation throughout our robust portfolio of strategic, client and rising companies”.
Nadir Godrej said, “Godrej was based in 1897 to assist construct financial independence for India. This deep goal of innovating for a trigger – the values of belief and respect and the assumption in trusteeship and making communities that the businesses function in stronger and higher – proceed to type the bedrock of who we’re 125 years later. We look ahead to constructing on this legacy with focus and agility”
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