Godrej family split settled: Adi, Nadir retain listed firms; cousin Jamshyd gets unlisted companies, land bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The 127-year-old Godrej Group’s founding family has finalised an agreement to divide the FMCG-to-home appliances-to-real estate conglomerate between two branches, with Adi and Nadir on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other, according to an exchange filing.

The 82-year-old Adi Godrej and his brother Nadir (73) retain control over Godrej Industries and its listed entities, while the cousins Jamshyd (75) and Smita (74) will take ownership of the unlisted Godrej & Boyce along with its affiliates and a substantial land bank, including a prime property in Mumbai.

The development confirms the CNBC-Awaaz newsbreak earlier in the day that the finalised agreement would be released shortly.

Under the agreement, Godrej Enterprises Group (GEG), encompassing Godrej & Boyce and its affiliates spanning various industries, will be helmed by Jamshyd Godrej as chairperson and managing director, with Nyrika Holkar (42), Smita’s daughter, serving as executive director.

The control of this arm, which also holds a significant land bank including 3,400 acres of prime land in Mumbai, will rest with Jamshyd’s family. GEG and its affiliates have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software.

Meanwhile, Godrej Industries Group, comprising the listed firms of the conglomerate, will be chaired by Nadir Godrej and controlled by Adi, Nadir, and their immediate families. Pirojsha Godrej, Adi’s 42-year-old son, will hold the position of executive vice chairperson and will succeed Nadir as chairperson in August 2026, the statement added.

The Godrej family described the split as “an ownership realignment,” of the shareholdings in the Godrej companies.

“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 maximise strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders,” the statement said.

Both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage, it added.

To facilitate the split, members from both sides resigned from the boards of companies from opposing sides. Adi and Nadir Godrej resigned from the Godrej & Boyce Board, while Jamshyd Godrej left his seat on the boards of GCPL and Godrej Properties.

Commenting on the future outlook, Jamshyd Godrej said: “Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. 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 across our strong portfolio of strategic, consumer and emerging businesses”.

Nadir Godrej said, “Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause – 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”.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow