When the Godrej family announced a realignment of their shareholdings in the Godrej Group about six weeks ago, the media, while providing the details of the restructuring stated that it was "a seamless business split” (India Today). Business Standard called it an "amicable split.” Hindustan Times quoted Industrialist Harsh Goenka who described the division "all clean like their soaps.” Goenka stated on X (erstwhile Twitter) that the deal was struck "with the elegance and dignity that the family is known for.”
Earlier, in a statement dated April 30, 2024 posted on the Godrej Group website, the family had announced an ownership realignment of their shareholdings. "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. This will help maximize strategic direction, focus, agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.” The realignment will be implemented after the relevant regulatory approvals have been obtained.
The Godrej Enterprises Group (GEG) will be controlled by Jamshyd Godrej, chairperson and managing director, Nyrika Holkar, executive director (daughter of Jamshyd’s sister Smita Godrej Crishna) and their immediate families. It will comprise of Godrej and Boyce (G&B) and its affiliates. GEG will have a presence in aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, engineering services, intra-logistics, healthcare equipment, durables, furniture, interior design, architectural fittings, information technology, software as well as infrastructure solutions.
The Godrej Industries Group (GIG), which includes the listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences, which will have Nadir Godrej as chairperson, will be controlled by Adi Godrej, Nadir and their immediate families. Pirojsha Godrej (Adi’s son) will be the executive vice chairperson of GIG and will succeed Nadir as chairperson in August 2026.
Clockwise from 1st row, l: Adi and Nadir Godrej,
Smita Godrej Crishna, Rishad Naoroji, Jamshyd Godrej
From l: Nisaba and Pirojsha Godrej; Nyrika Holkar
Jamshyd said, "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.” Commenting on the Group’s century-and-a-quarter history, Nadir said, "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.”
Both GEG and GIG will continue to use the Godrej brand "and are committed to growing and strengthening their shared heritage.”
Adi, Nadir, Jamshyd, Smita and their cousin Rishad Naoroji, who has no formal role in the conglomerate, own about 10% each in G&B while about 24% is held by the Pirojsha Godrej Foundation and 27% by Godrej Investments. The five listed companies have a market capitalization of Rs 2.4 lakh crore (USD 29 bn), revenues of Rs 41,750 crore (USD five bn) and profit of Rs 4,175 crore (USD 500 mn). Closely held non-quoted G&B has revenues of about two billion USD (Rs 16,706 crore) and pre-tax profit of USD 72 mn (Rs 601 crore), noted The Times of India (ToI) of May 1, 2024. Naoroji, who reportedly owns shares worth Rs 7,050 crore (USD 843 mn) in the listed companies, will gift them to the two branches of the family, proportionate to their realigned holdings in these companies stated Mint of May 2.
According to the ToI, "It remains to be seen how the Group’s real estate assets worth Rs 3,000 crore (USD 359 mn) held under G&B will be split between the two sides. Godrej Properties has been developing some of the G&B land.”