The 127-year-old business family, Godrej announced their separation of assets on Tuesday, detailing the division of businesses and usage of land parcel and brand. The family is expected to clear the cross-holdings in each Godrej company to separate ownership.
The two factions will continue their cooperation for the development of the 3,400-acre land parcel in Vikhroli, Mumbai. The separation agreement has a non-compete clause for six years. The families can enter into other's areas of business with a different brand name only after six years.
The Family And Division
The Godrej empire is run by two splinter families, led by cousins Adi Godrej and Jamshyd Godrej. Adi was the chairman of the group at one point of time. But the role ceased to exist with the rise of bitterness in the two factions under the cousins.
Adi Godrej faction, which includes his three children, Tanya, Nisaba and Pirojsha as well as brother Nadir, controls Godrej Industries and Associated Companies (GILAC). Godrej Consumer Products Ltd (GCPL), Godrej Properties Ltd (GPL) and Godrej Agrovet Ltd (GAL) are the major companies that they run.
The Jamshyd faction, which includes his sister Smita and her husband Vijay Crishna and their daughter, Nyrika Holkar, owns the unlisted firm Godrej & Boyce (G&B). The company has interests in aerospace, defence, locks, furniture and home appliances.
The two families are expected separate their stakes in each other's companies soon.
Succession
Both the factions hinted at their succession also. GILAC will be headed by Nadir Godrej as chairman until August 2026. Pirojsha Godrej, son of Adi, will be the vice chairman and will succeed Nadir. However, the flagship company, GCPL is expected to be operationally controlled by Nisaba, the second daughter of Adi.
G&B will be controlled by Jamshyd Godrej and Nyrika Holkar, executive director. The announcement mentions Jamshyd's son and devisee apparent at G&B, Navroze Godrej, who relinquished his executive director role in 2018.
Vikhroli Land
The vast land parcel in Vikhroli, for which the family secured its ownership from the receiver of the Bombay High Court in the 1940s, will continue to be owned by Jamshyd's G&B. As part of the ownership realignment, G&B, which is the owner-developer, will execute memorandum of understanding (MoU) time to time with the development manager Godrej Properties (Adi group company) for development of the land.
Of the 3,400 acres the family owns in Vikhroli, about 3,000 acres are on the books of Jamshyd's G&B. It has a development potential of over ₹4 lakh crore. The group can develop 1,000 acres here. About 1,750 acres are covered with mangroves and host rare plants and birds. About 300 acres have been encroached.
According to Jamshyd Godrej, "Godrej Construction and Godrej Properties bring complementary strengths, which has translated into the launch of successful real estate projects in Vikhroli."
Brand
Both Groups will continue to use the Godrej brand and they said they are committed to growing and strengthening the shared heritage. There are many examples of business families using common brand after their split, like Bajaj, Reliance and even Kirloskar. It was Adi's elder daughter Tanya Dubash who was the chief brand officer of the Godrej group.
