127-year-old-godrej-empire-splits-an-inside-look-at-the-family-realignment

The 127-year-old Godrej Group, which includes soaps, home appliances, and real estate, has split. The conglomerate's founding family made the decision, with Adi Godrej and his brother Nadir keeping Godrej Industries, which has five listed firms, while cousins Jamshyd and Smita get unlisted Godrej & Boyce and its affiliates as well as a land bank, including prime property in Mumbai.

 

The group has been split between two branches of the founding family, with Adi Godrej (82) and his brother Nadir (73) on one side and their cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) on the other, a statement by the group said.

 

The Godrej Enterprises Group, which includes Godrej & Boyce and its affiliated companies operating in various industries such as aerospace, aviation, defence, furniture, and IT software, will now be led by Jamshyd Godrej as the Chairperson and Managing Director.

 

His sister Smita's daughter Nyrika Holkar, 42, will be the executive director.

 

Their families will control this arm, which will also hold the land bank, including 3,400 acres of prime land in Mumbai.

 

Godrej Industries Group, which includes the publicly traded companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences, will be chaired by Nadir Godrej and controlled by Adi and Nadir Godrej and their immediate families. 

 

In the statement, the Godrej family termed the split "an ownership realignment" of the shareholdings in the company.

 

"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," it said.

 

"This will help maximise strategic direction, focus, and agility and accelerate the process of creating long-term value for shareholders and all other stakeholders." Both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage.

 

Lawyer-turned-serial entrepreneur Ardeshir Godrej and his brother in 1897 succeeded at locksmithing after failed ventures into hand-fashioned medical devices.

 

Ardeshir did not have any children, so his younger brother Pirojsha inherited the group. Pirojsha had four children: Sohrab, Dosa, Burjor, and Naval.

 

Over the years, the leadership of the group passed down to the children of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita), as Sohrab had no children, and Dosa's only child, Rishad, had no children of his own.

 

To enable the split, individuals representing two different sides resigned from the boards of companies in rival camps. Consequently, Adi and Nadir Godrej stepped down from the Godrej & Boyce Board, while Jamshyd Godrej gave up his seat on the GCPL and Godrej Properties boards.