The third-generation siblings, Adi and Nadir, children of Burjor, late on Tuesday reached an agreement to separate from their cousins Jamshyd and Smita, children of Naval, a family statement said.
Godrej & Boyce Mfg. Co. Ltd will go to the families of siblings Jamshyd Godrej and Smita Crishna. The unlisted company, with interests in aerospace, aviation, defence, engines and motors, construction, furniture and software and IT among others, will be under the umbrella of the Godrej Enterprises Group.
Nyrika Holkar, daughter of Crishna, is the heir-apparent of this faction, and has been designated executive director. Jamshyd Godrej will be chairperson and managing director.
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Meanwhile, families of brothers Nadir and Adir Godrej will inherit listed companies Godrej Industries Ltd, Godrej Properties Ltd, Godrej Agrovet Ltd, Godrej Consumer Products Ltd and Astec Lifescience Ltd, spanning consumer products, chemicals, and real estate, among others. Called Godrej Industries Group (GIG), it will be chaired by Nadir Godrej. His nephew Pirojsha, executive vice-chairperson, will succeed Nadir in August 2026.
The shareholdings of family members will be realigned across companies to reflect their inherited businesses. Both groups will continue to use the Godrej brand. Regulatory approvals for realigning the shareholding are awaited, a Godrej family statement read.
The realignment has been arrived at in a “respectful and mindful way,” the press statement read, adding that it will “better align ownership in acknowledgement of the differing visions of the Godrej family members.”
The Godrej group was founded by Ardeshir Godrej, who after a few failed ventures hit it big with the locks business. The Godrej Nav-Tal locks are popular to this day.
Over the decades, the group diversified significantly, entering sectors such as chemicals, furniture, security solutions, real estate, home & personal care, general engineering, heavy engineering, intra-logistics, power and energy, aerospace, infrastructure, food & agri products, information technology and financial services.
The Godrej family is also among the biggest landlords in Mumbai, holding around 3,400 acres, including a single parcel of 3,000 acres. It is this inheritance that was leveraged by the family to become a serious real estate player.
The group also has significant presence overseas through its consumer products division. It is an FMCG products leader in emerging markets with growing presence in Asia, Africa and Latin America.
“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,” said Jamshyd Godrej.
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.”
Earlier in the day, shares of listed Godrej Industries Ltd closed 5.78% higher on the BSE at ₹960.65, and Astec LifeSciences gained 4.99%. Shares of other listed group companies moved less than 1%, while the benchmark Sensex index closed 0.25% lower.
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Published: 01 May 2024, 12:37 AM IST