Godrej family begins formal division of century-old conglomerate
The prominent Godrej family has reportedly begun the formal division of their extensive empire, with a focus on imminent divestments. Adi and Nadir Godrej are said to be preparing to divest their stakes in Godrej & Boyce (G&B), transferring them to another family branch. Simultaneously, Jamshyd Godrej and his sister Smita Godrej Crishna plan to shift their interests in Godrej Consumer Products (GCPL) and Godrej Properties through a family arrangement.
Divestment plans aimed at maintaining family harmony
The divestment plans are seen as a proactive measure by the Godrej family to avoid potential disputes and maintain harmony within the family. This strategic restructuring is expected to streamline operations and ensure a smooth power transition among the next generation. By transferring stakes in G&B, GCPL, and Godrej Properties through family arrangements, they aim to streamline operations while preserving familial unity.
New structure emerges in Godrej conglomerate post-division
The Godrej conglomerate will be divided into two main groups: Godrej Industries & Associates, led by Adi and Nadir, and Godrej & Boyce (G&B), headed by Jamshyd and his sister. As part of the division, Adi and Nadir will transfer their stakes in G&B to Jamshyd and Smita. Conversely, Jamshyd's faction will transfer their interests in GCPL and Godrej Properties to their cousins.
Real estate and ownership rights
Real estate estimated at ₹3,400 crore, mostly prime land in the Mumbai suburbs, will remain under G&B, and a separate agreement will be worked out to govern ownership rights. The century-old conglomerate consists of five publicly traded companies — GCPL, Godrej Properties, Godrej Industries, Godrej Agrovet and Astec Lifesciences — with a combined value of ₹2.34 lakh crore as of market close on Thursday.
