The Godrej family, a prominent Indian industrial house, announced a significant change to their business holdings on Tuesday, April 30th, 2024. After a lengthy meeting, the family reached an agreement they termed an “ownership realignment” to streamline their shareholdings across the Godrej conglomerate.
The press release from the Godrej group emphasized that this restructuring was achieved “in a respectful and mindful way” to ensure continued harmony within the family and better align ownership with the differing visions of its members. This move effectively splits the group between two branches of the Godrej family.
On one side are Adi Godrej, the group’s chairman emeritus, and his brother Nadir Godrej. On the other side are their cousins, Jamshyd Godrej, the current chairman and managing director of Godrej Enterprises, and Smita Godrej Crishna.
According to the official statement, this realignment aims to “maximize strategic direction, focus, and agility” within the Godrej businesses. The family believes this will ultimately lead to creating greater long-term value for shareholders and all stakeholders involved.
The realignment plan, however, is subject to regulatory approvals before it can be fully implemented.
Here’s a breakdown of how the Godrej empire will be divided:
- Godrej Industries Group (GIG): This arm will house the publicly listed companies of the Godrej group, including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences. This group will be controlled by Nadir Godrej.
- Godrej Enterprises Group (GEG): This section will encompass Godrej & Boyce (G&B) and its subsidiaries, spanning sectors like aerospace, aviation, defense, IT, and infrastructure solutions. GEG will be led by Jamshyd Godrej and his immediate family. Notably, this group will also hold the Godrej family’s significant land bank, including a substantial holding of prime real estate in Mumbai (around 3400 acres). Smita Godrej Crishna’s daughter, Nyrika Holkar, is expected to play a key role as an executive director within GEG.
The Godrej family business has a rich history in India, and this realignment marks a significant shift in its structure. While the long-term implications remain to be seen, the family’s expressed focus on maximizing growth and value suggests an optimistic outlook for the future of both the Godrej Industries Group and the Godrej Enterprises Group.
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