The illustrious Godrej family, presiding over a business conglomerate valued at ₹1.76 lakh crore, is reportedly embarking on a friendly separation, according to insiders familiar with the matter. The family, in control of a 126-year-old legacy, is dividing into two distinct factions: Godrej Industries & Associates, led by brothers Adi and Nadir Godrej, and Godrej & Boyce Manufacturing Company (G&B), spearheaded by cousins Jamshyd Godrej and Smitha Godrej Crishna.
As negotiations progress, two pivotal issues are under scrutiny: the utilization of the revered Godrej brand name and the prospect of royalty payments, along with the valuation of land assets currently held by G&B, as cited by sources in the Economic Times.
The impending formalized split plan is expected to delineate the division of various business verticals, spanning real estate, consumer products, engineering, appliances, security solutions, and agro-commodities.
“There are a lot of cross-holdings among family members and the family trusts that need to be disentangled,” revealed one source knowledgeable about the ongoing discussions. This intricate process is further complicated by the presence of another cousin, Rishad, who, although childless, holds shares in the family enterprise.
The decision to pursue a formal separation is rooted in the “aspirations of the future generation” and their “different way of thinking,” insiders reportedly noted. Additionally, the rapid growth of certain Godrej group businesses in recent years has resulted in disparities within the family, contributing to the move.
Jamshyd of G&B has enlisted the expertise of banker Nimesh Kampani and corporate lawyer Zia Mody to guide the split, while the Adi Godrej side is receiving assistance from legal firm Cyril Amarchand Mangaldas and banker Uday Kotak, as detailed in the ET report. Adi’s son, Pirojsha Godrej, who leads Godrej Properties, is actively involved in the negotiations.
It’s noteworthy that the group comprises five listed entities – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences – collectively valued at ₹1.76 trillion. In the fiscal year 2023, their combined profit reached ₹4,065 crore, with a cumulative revenue of ₹42,172 crore. The impending split signifies a significant development in the family’s legacy, reflecting changing dynamics and a commitment to adapt to the evolving business landscape.
