Godrej Group split news: Sources familiar with the case say the $4.1 billion Godrej Group, which includes soaps, home appliances, and real estate, is set for a split between the brothers, citing external counsel the family has sought for an amicable partition of the 124-year-old conglomerate.
Adi Godrej (79), a senior industrialist, now serves as the group’s chairman. Nadir Godrej, his brother, is the chairman of both Godrej Industries and Godrej Agrovet.
Jamshyd N Godrej, their cousin, is the chairman of Godrej & Boyce Manufacturing Company Ltd, the conglomerate’s main enterprise and one of India’s oldest commercial families.
It was started in 1897 by lawyer-turned-serial entrepreneur Ardeshir Godrej, who achieved success with the locks company after a string of unsuccessful businesses.
The gang is seeking a total large-scale divide between two parties, one commanded by Adi and Nadir and the other by Jamshyd and his sister Smitha Godrej Crishna, according to a report.
“The Godrej family has been working on a long-term strategy plan for the business for the last few years to ensure best value for its shareholders,” the family stated in a joint statement when sought for comment.
The statement went on to say, without giving any further specifics, “We also sought assistance from other partners as part of this process. These talks amongst the family members are still going on.”
Godrej Group split news
The family is allegedly consulting people close to them, including financiers Nimesh Kampani and Uday Kotak, as well as well-known legal figures like Zia Mody of AZB & Partners and Cyril Shroff, for the exercise.
Around 23% of the promoter stake in Godrej Group is held in trusts that invest in the environment, health, and education sectors, according to the company.
Godrej & Boyce Mfg Co Ltd, the group’s flagship unlisted engineering business, as well as listed organisations such as Godrej Consumer Products Ltd, Godrej Agrovet, Godrej Properties, and Godrej Industries Ltd, are among the group’s significant enterprises.
While family members have cross ownership in each of the firms, Adi and Nadir operate the publicly traded companies Godrej Consumer Products Ltd, Godrej Agrovet, Godrej Properties, and Godrej Industries Ltd. Jamshyd, on the other hand, is home to Godrej & Boyce Mfg Co Ltd.
Patriarch Adi Godrej has been progressively stepping down as his offspring have assumed various roles inside the organisation.
Tanya Dubash, his eldest daughter, is the group’s executive director and chief brand officer. Nisaba Godrej, the eldest daughter, is the executive chairperson of Godrej Consumer Products Ltd, while her brother Pirojsha is the chairman of Godrej Properties.
Adi had stated earlier in August that he will stand down as chairman and from the board of directors of Godrej Industries Ltd, handing over the reins to his younger brother Nadir.
While Jamshyd’s sister Smitha isn’t involved in the company, her husband Vijay Crishna is a non-executive director of Godrej & Boyce as well as a director of Godrej Industries and Godrej Agrovet.
It is thought that the division’s exploration process is being hastened as the family’s younger generation becomes more active in the business and demands more clarity on accountability and ownership.