Godrej family announces formation of 2 groups
02 May 2024
The 127-year-old diversified Godrej Group on Wednesday announced a formal division into two separate groups – one controlled by brothers Adi Godrej and Nadir and the other by their cousins Jamshyd Godrej and Smita Godrej.
Founded by Ardeshir Godrej and Pirojsha Burjorji Godrej in 1897, the Mumbai-headquartered Godrej Group has presence in sectors, including real estate, consumer products, engineering, appliances, furniture, security and agricultural products.
The 2.4 lakh crore group operates through various subsidiaries and affiliates, including Godrej Industries and its subsidiaries Godrej Consumer Products, Godrej Agrovet, and Godrej Properties, with Godrej & Boyce Mfg Co Ltd as the holding company.
The group is largely owned and managed by the family members, even as professionalism has been built into the group over the years.
A formal division was long in the making after Adi and Parmeshwar Godrej's three children - Tanya, Nisaba, and Pirojsha - joined the group in various executive capacities after completing their higher studies. Adi Godrej, who was 79 years old then, stepped down as the executive chairperson of the holding company, Godrej Industries in 2021.
And now, after the formal split, when Nadir Godrej steps down from the top leadership of the group in 2026, his son Pirojsha will be taking charge of one division.
According to a statement issued by the group, the Adi-Nadir group will own the Godrej Industries Group comprising the listed companies - Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences -- with Nadir Godrej as chairperson.
Adi Godrej’s son Pirojsha Godrej will be the executive vice chairperson of the group and will succeed Nadir as the chairperson in August 2026,.
The Jamshyd-Smita group will control the Godrej Enterprises Group comprising Godrej & Boyce and its affiliates operating in the areas of IT software, defence, aerospace, aviation, furniture etc, with Jamshyd Godrej as chairperson and managing director. Nyrika Holkar, daughter of his sister Smita, will be the executive director.
The group will also hold a land bank, which includes 3,400 acres of prime land in Mumbai.
The land bank includes a 3,000-acre parcel in Vikhroli, Mumbai, which has an estimated value of Rs1 lakh crore. About 1,000 acres of this land parcel has the potential for development while 1,750 acres are mangroves. Nearly 300 acres have been encroached by tresspassers.
The statement terms the split as "an ownership realignment" of the shareholdings in the Godrej companies, which, it adds, will bring agility and improve strategic focus, thereby maximising value for all stakeholders.
Both groups will continue to use Godrej brand.
