The Godrej group has been split between two branches and have decided to restructure its shareholdings in the conglomerate spanning from soaps and home appliances to real estate -- into two entities, Godrej Enterprises and Godrej Industries, according to a filing late on Tuesday.
With Adi Godrej (82) and his brother Nadir (73) will keep Godrej Industries that has five listed firms, their cousins, Jamshyd Godrej (75) and Smita Godrej Crishna (74), will get unlisted Godrej & Boyce and its affiliates as well as a land bank, including prime property in Mumbai.
In a statement by the Godrej family, the split is termed as "an ownership realignment" of the shareholdings in the Godrej companies.
"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 said.
"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."
Check out what will be owned by who?
Godrej Enterprises Group (GEG) will be headed by Jamshyd Godrej as chairperson and managing director. and his sister Smita's daughter Nyrika Holkar will take over as executive director.
GEG operates across aerospace, aviation, defence and liquid engines among others.
Jamshyd Godrej was earlier serving as managing director and chairman of Godrej & Boyce, the privately held company, founded in 1897.
Their families will control this arm that also will hold the land bank, including 3,400 acres of prime land in Mumbai.
As per PTI, commenting on the future outlook, Jamshyd Godrej said, "Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high-tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses".
Nadir Godrej will serve as chairperson of Godrej Industries Group (GIG).
GIG operates via listed companies - including Godrej Industries, Godrej Consumer Products , Godrej Properties, Godrej Agrovet and Astec Lifesciences.
GIG will be controlled by Nadir's brother Adi Godrej and their immediate family.
Nadir Godrej said, "Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause - the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better - continue to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility".
Adi Godrej stepped down as chairman of Godrej Industries in August 2021, handing over the reign to his brother, Nadir Godrej.
Adi Godrej's son Pirojsha Godrej will be named chairperson of GIG, succeeding Nadir Godrej in August 2026.
PTI's unconfirmed reports say Adi and Nadir Godrej will divest their stakes in Godrej & Boyce to the other branch. Jamshyd Godrej and his side of the family will transfer interests in Godrej Consumer Products (GCPL) and Godrej Properties to their cousins through a family arrangement.
Real estate worth crores of rupees, mostly in prime land in Mumbai suburbs, will remain under Godrej & Boyce, and a separate agreement will be worked out to govern the ownership rights.
It owns 3,400 acres of land in Mumbai, including a 3,000-acre parcel in Vikhroli, Mumbai. The Vikhroli land by some estimates has a development potential of over Rs 1 lakh crore. It can develop 1,000 acres, while about 1,750 acres are covered with mangroves and is the destination of rare plants and birds. About 300 acres of land have already been encroached upon.
The Vikhroli property was bought by Pirojsha at a public auction from the Bombay High Court receiver in 1941-42.
(With PTI, Reuters inputs)