New Delhi, May 1 (IANS): In the increasingly contentious world of family business splits, the peaceful division of the 127-year-old Godrej empire worth $5.7 billion is a rare occurrence.
According to the company, Adi Godrej, who is head of the family and his brother Nadir Godrej, will retain control of the five listed companies of the Godrej Group.
"Godrej was founded in 1897 to help build economic independence for India," Nadir Godrej said.
"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 127 years later," Nadir Godrej said.
According to a stock exchange filing, the cousins, Jamshyd and Smita, will receive the unlisted Godrej & Boyce Mfg. Co., along with its affiliates and a huge land bank.
Both the groups will continue to utilise the 'Godrej' brand and are "committed to growing and strengthening their shared heritage".
The division of the conglomerate was agreed upon to honour the differing viewpoints within the family over business strategies, especially among the younger generation.
“There have been no apparent undercurrents despite the differences," according to sources.
The Godrej Industries Group - which includes the listed entities Godrej Industries Ltd., Godrej Consumer Products Ltd., Godrej Properties Ltd., Godrej Agrovet Ltd., and Astec Lifesciences Ltd - will be led by Nadir Godrej as chairperson alongside his brother Adi and their immediate families.
The five listed companies are collectively valued at Rs 2.4 lakh crore.
Pirojsha Godrej, the son of Adi Godrej, has been appointed as the executive vice chairperson of the group.
He is scheduled to assume the role of chairperson from Nadir Godrej in August 2026.
Meanwhile, the Godrej Enterprises Group will be led by Jamshyd Godrej, who serves as chairperson and managing director, alongside Nyrika Holkar as the executive director, and their immediate families, as per the family settlement agreement.
The Godrej Enterprises Group comprises Godrej & Boyce, along with its associated companies that operate diverse businesses including appliances, aerospace, aviation, defence, energy, security, construction, healthcare, furniture, IT, and infrastructure.
The family will also retain land banks, including over 3,400 acres in Vikhroli, a suburb of Mumbai, which remain the family's largest asset.
"With this forward-looking 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.