'Ownership Realignment': 127-Year-Old Godrej Group Divided Into Two Parts As Family Seals Deal; Details Of The Split Here

The Godrej family has finalised an amicable split of their 127-year-old conglomerate, which includes businesses ranging from soap production to real estate, as per a report by The Indian Express.

The conglomerate has been divided into two parts, with Adi Godrej and his brother on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other.

Adi Godrej and his brother Nadir will retain control of Godrej Industries, which includes five listed firms. Their cousins Jamshyd and Smita will take over unlisted Godrej & Boyce and its affiliates, along with a significant land bank that includes prime properties in Mumbai.

Jamshyd Godrej will take charge of Godrej Enterprises Group, which includes Godrej & Boyce and its affiliates across industries like aerospace, aviation, defence, furniture, and IT software. His niece Nyrika Holkar will serve as the executive director.

The family will also retain ownership of the land bank, which includes 3,400 acres of prime land in Mumbai.

The split, termed as "an ownership realignment" of shareholdings in the Godrej companies, aims to maintain harmony and align ownership with the differing visions of the Godrej family members.

The realignment is expected to maximise strategic direction, focus, and agility, accelerating the creation of long-term value for shareholders and stakeholders.

To facilitate the split, the two sides have resigned from boards of companies in rival camps. The real estate, primarily in Mumbai suburbs, will remain under Godrej & Boyce, with a separate agreement to govern ownership rights.

The split will be implemented after obtaining relevant regulatory approvals.