Godrej Group Set To Split, Family Council Discussing Division Terms: Report

The Godrej group, a Rs 1.76-lakh-crore conglomerate, founded by Ardeshir Godrej in 1897, is set to be divided between several family members, according to an ET report.

The leading group has several businesses that may range from home appliances, engineering solutions, security solutions, agricultural products, real estate, and consumer products, among others. It is involved in making diverse things such as door locks, soaps and space rockets.

The split, if and when it happens, will mark a major turning point for the conglomerate as well as the country which has known Godrej as a household name for close to a century. Godrej is one of the very few industrial houses which have become synonymous with the products they made. The steel almirah which has defied fashions for decades and endured as a permanent fixture in Indian households is one example, added the ET report.

The two factions of the Godrej family - Godrej Industries & Associates led by Adi Godrej and his brother Nadir, and Godrej & Boyce Manufacturing Company (G&B) involving cousins Jamshyd Godrej and Smitha Godrej Crishna - are likely to finalise soon the formal split of business verticals as diverse as engineering, appliances, security solutions, agricultural products, real estate, and consumer products, ET has reported based on information form sources. The family council is ironing out some important specifics involving two critical points - usage of the Godrej brand name after the split, including possible royalty payments, and land valuations currently held by G&B.

"The Godrej family has been working on a long-term strategic plan for the group for the last few years to ensure best value for its shareholders," Godrej Industries Ltd and Godrej & Boyce had told ET in a joint statement in 2021.

"There are a lot of cross-holdings among family members and the family trusts that need to be disentangled. Most of them sit on boards of the group company - the brand is common. There is another cousin of Adi, Rishad, who does not have kids of his own but is a shareholder. So it is a complicated process," an executive involved in the ongoing discussions had told ET. "The aspirations of the future generation and their thinking are very different and that is at the root of a formal separation of roles and businesses. Some of the businesses have grown much bigger so there is inequality as well."

Godrej Group came into existence in 1897. The Godrej Group has its roots in India's Independence and Swadeshi movement. Its founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few ventures, before he struck gold with a locks business.
Today, Godrej Group enjoys the patronage of 1.1 billion consumers globally across consumer goods, real estate, appliances, agriculture and many other businesses.

Its geographical footprint extends beyond Earth, with its engines now powering many of India's space missions. Its business verticals include appliances, furniture, furnishing & fittings, locks & security solutions, real estate, chemicals, general engineering, home & personal care, heavy engineering, intra-logistics, power and energy, aerospace, infrastructure, food & agri, information technology, financial services.