Explained: Why Did The Godrej Family Split Their 127-Year Business Empire? Who Got What?
Godrej Family:?From simple locks and safes to secure your valuables and enduring almirahs, to fragrant soaps and even reaching the Moon, there's one common thread - the Godrej company. Established in 1857, the Godrej company has its origins in the Swadeshi movement, quickly finding its way into the hearts and homes of the people. As of September 2023, the Godrej Group's value stands at Rs 1,76,000 crore, comprising five listed companies: Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences.
Godrej Family Split
The founding family of the 127-year-old Godrej Group has agreed to divide the conglomerate. Under this arrangement, Adi Godrej and his brother Nadir will retain ownership of Godrej Industries, which encompasses five listed companies. On the other hand, their cousins, Jamshyd Godrej and Smita Crishna, will assume control of the unlisted Godrej & Boyce and its associated entities.
Godrej family seals deal to split group's assets
This split signifies a division between two branches of the founding family. Adi Godrej (82) and Nadir (73) will lead one faction, while Jamshyd Godrej (75) and Smita Crishna (74) will oversee the other, as outlined in a statement released by the group.
The rationale behind this split, according to the family's statement, is described as an "ownership realignment" of their shareholdings in the Godrej companies.
The Godrej Enterprises Group, comprising Godrej & Boyce and its affiliates with operations across various industries such as aerospace, aviation, defense, furniture, and IT software, will be overseen by Jamshyd Godrej as chairperson and managing director. Serving as the executive director will be Nyrika Holkar, the 42-year-old daughter of Smita.
Their families will also retain control of the land bank, which includes 3,400 acres of prime land in Mumbai.
Meanwhile, the Godrej Industries Group, including the listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences, will be chaired by Nadir Godrej. The group will be managed by Adi, Nadir, and their immediate families.
Pirojsha Godrej, Adi's son, will serve as the executive vice chairperson of the Godrej Industries Group and will succeed Nadir as the chairperson in August 2026, as stated in the announcement.
The split involves dividing the conglomerate into two distinct entities:
Godrej Enterprises Group (GEG): Controlled by Jamshyd Godrej and his immediate family, GEG includes Godrej & Boyce and its affiliates. GEG operates across various industries, such as aerospace, aviation, defense, furniture, IT software, and real estate. It notably holds a significant land bank, including prime property in Mumbai.
Godrej Industries Group (GIG): Led by Nadir Godrej and involving Adi Godrej and their immediate families, GIG comprises the conglomerate's listed companies, including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences.
The split also involves succession planning within each entity. Pirojsha Godrej, son of Adi Godrej, is set to assume a leadership role within GIG, succeeding Nadir Godrej as the chairperson in August 2026.
Godrej: Success Story Of 127-Year Business Empire
The Godrej company was founded by Ardeshir Godrej, who initially aimed to become a lawyer but later shifted his focus to manufacturing surgical equipment. However, his equipment faced rejection due to the "Made in India" branding. Yet, in 1987, he found success by establishing a lock-making factory.
Prior to Ardeshir's locks, India imported factory-made locks. By 1908, Ardeshir had patented the world's first springless lock, marking a significant contribution to India's history. Following locks, Ardeshir introduced India's first vegetarian soap, named Chavi, in 1919. This cruelty-free and Swadeshi alternative gained popularity and was endorsed by notable figures like Rabindranath Tagore, Dr. Annie Besant, and C. Rajagopalachari.
Godrej's reputation as a trusted company??
In 1944, Godrej's reputation as a trusted company was solidified after a major accident. During World War II, the SS Fort Stikine, carrying ammunition and flammable cargo, caught fire in Bombay. Despite the tragedy claiming 700 lives, the contents stored in Godrej safes remained unharmed.
Godrej also played a crucial role during India's first general elections by manufacturing tamper-proof, waterproof, and vermin-safe ballot boxes. In the 1960s and 1970s, the company expanded into architectural fabrication, supplying steel windows and door frames for prominent buildings like the Tata Institute of Fundamental Research.
Adi Godrej, who shaped the Godrej empire
In 1963, Adi Godrej joined the family business and initiated reforms to modernize operations. He reduced family involvement and brought in professionals for key roles like CEO and COO. Under his leadership, Godrej diversified into typewriter production, competing with Remington in India. Their expertise in precision engineering also contributed to India's space missions, including Mangalyaan and Chandrayaan, by developing high-precision satellites for the Indian Space Research Organisation.
FAQs:
Who is the owner of the Godrej family?
The founding family of the 127-year-old Godrej Group has agreed to split the conglomerate. In this division, Adi Godrej and his brother Nadir will retain ownership of Godrej Industries, which includes five listed firms.
Which caste is Godrej's family?
Burjorji was the nephew of Ardeshir Godrej, founder of the Godrej group of industries. Since Ardeshir was childless, the vast industrial estate created by Ardeshir was inherited by three nephews. The family belongs to the Parsi community and follows the (Zoroastrian) religion.
What is the net worth of the Godrej family in rupees?
As per the closing prices on Tuesday, the Godrej family's stake in the five listed companies is valued at Rs 1.53 trillion, with a combined market capitalisation of Rs 2.44 trillion. Here is a look at the group's history.
Who is the CEO of Godrej?
Sudhir Sitapati is the Managing Director and CEO of Godrej Consumer Products Limited.
Who owns 3400 acres in Mumbai?
The Godrej Group owns over 3,400 acres in Vikhroli. A large chunk of this total land holding falls under ecologically sensitive mangroves and around 1,000 acres can be developed. The land is reportedly valued around Rs 1 lakh crore.
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