Godrej split: Family agrees to divide conglomerate into two branches

Godrej family has decided to split the 127 year old business into two branches. As per a regulatory filing, Adi and brother Nadir will keep the listed entities while cousins Jamshyd and Smita get control of unlisted companies and the land bank.

The agreement submitted to the stock exchanges addresses issues of Royalty, Brand Usage and Land Bank development.

"To preserve mutual respect, goodwill, amity and harmony and to manage diverse expectations and varied strategic directions desired by each Family Branch, the Family Branches have agreed upon a settlement arrangement amongst the Family Branches," the Family Settlement Agreement (FSA) said

Godrej split

Before the effective date of the FSA and the approval of Competition Commission of India, the shareholding interests and directorships between various entities will have to be realigned. For the realignment, Adi and brother Nadir's Family will make an open offer to the shareholders of Astec Lifesciences.

Till then businesses will be carried out by existing Family Groups smoothly till the effective date. The conglomerate further mentioned that the Godrej trademark is equally owned and shared by both Family Groups.

Godrej conglomerate lead

Godrej Enterprises Group -- comprising Godrej & Boyce and its affiliates that have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software -- will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita's daughter Nyrika Holkar, 42, will be the executive director.

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

Godrej Industries Group -- which includes the listed companies - Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences -- will have Nadir Godrej as chairperson and will be controlled by Adi, Nadir and their immediate families.

Pirojsha Godrej, 42, son of Adi, will be the executive vice chairperson of GIG and will succeed Nadir as the chairperson in August 2026, the statement said.

Godrej Conglomerate inheritance

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, and so the group was inherited by his younger brother Pirojsha. Pirojsha had four children - Sohrab, Dosa, Burjor and Naval.

Over the years, the helm of the group came to the children of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita) as Sohrab had no children while Dosa had one child Rishad, who had no children.

To enable the split, the two sides quit the boards of companies in rival camps. So, Adi and Nadir Godrej resigned from the Godrej & Boyce Board, while Jamshyd Godrej left his seat on the boards of GCPL and Godrej Properties.

The realignment will be implemented after the relevant regulatory approvals have been obtained.

[With PTI inputs]

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