In a significant development, the Godrej Group is on the verge of announcing the split of its vast business empire. Sources close to the matter revealed to CNBC-Awaaz that the conglomerate is expected to finalize a family settlement today, likely resulting in an amicable agreement.
The Godrej Group, renowned for its diverse portfolio spanning engineering solutions, home appliances, security solutions, agricultural products, real estate, and consumer goods, is currently divided into two factions of the family.
One faction, led by Adi Godrej and his brother Nadir, heads Godrej Industries & Associates. On the other hand, Godrej & Boyce Manufacturing Company (G&B) is under the leadership of cousins Jamshyd Godrej and Smitha Godrej Crishna.
Under the proposed settlement, Adi and Nadir Godrej are expected to assume control of most listed companies, while Godrej & Boyce Manufacturing Company’s control is likely to be entrusted to Jamshyd Godrej and Smitha Godrej.
The agreement is said to address various critical issues such as royalty, brand usage, and land bank development, providing clarity and direction for the future of the conglomerate.
Established in 1897, Godrej Industries Limited serves as a holding company with extensive interests in consumer goods, agriculture, real estate, chemicals, and financial services. The conglomerate holds a significant stake in several key entities, including a 64.89% stake in Godrej Agrovet Ltd, a 23.74% stake in Godrej Consumer Ltd, and a 47.34% stake in Godrej Properties Ltd.
The Godrej Group boasts five listed firms – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences. Among these, Godrej Consumer Products stands out as the largest, with a market capitalization of Rs 1.26 lakh crore as of April 30.
As the Godrej family moves towards restructuring its business, the industry awaits the official announcement, marking a new chapter in the illustrious legacy of one of India’s oldest and most respected conglomerates.