After discussions for the reorganization of the 124-year-old, $4-billion Godrej conglomerate, the group has initiated a formal exercise to divide the empire between two groups led by the families of Adi Godrej and brother Nadir and another one led by their cousins Jamshyd Godrej and Smitha Godrej Crishna.
At present, the group is led by veteran industrialist Adi Godrej (79), who is its chairman. His brother Nadir Godrej is the chairman of Godrej Industries as well as Godrej Agrovet. Their cousin Jamshyd N Godrej is the chairman of Godrej & Boyce Manufacturing Company Ltd, which is also the flagship firm of the conglomerate, one of India’s oldest business houses.
“The Godrej family has been working on a long-term strategic plan for the group for the last few years to ensure best value for its shareholders. As part of this exercise, we have also sought advice from external partners. These discussions between the family remain ongoing,” Godrej Industries Ltd (GIL) and Godrej & Boyce told ET in a joint statement.
The 124-year-old business group, which started as a lock company that went on to make the world’s first vegetable oil soap, is among the most respected in India, with the fourth generation of the family involved in business operations.
Earlier in August this year, Adi Godrej had announced stepping down as chairman as well as from the board of directors of Godrej Industries Ltd and chairman emeritus of GIL, elevating Nadir Godrej, who was managing director, to take over from him this month. The children of Adi Godrej have taken various responsibilities in the group.
It is understood that the exploration exercise of the division is being accelerated with the younger generation of the family getting more involved in the business and wanting more clarity over responsibility and ownership.
