Godrej family looks to divide a $4.1 billion empire between two groups: report
The Godrej Group has begun a legal process to partition the empire between brothers: Adi Godrej and his brother Nadir, and his cousins Jamshyd Godrej and Smitha Godrej Crishna’s. According to a report published recently, discussions for the reorganization of the $4.1 billion company have been ongoing for months but have just lately picked up speed.
Godrej Business Profile
- Industries – Consumer Goods
- Company size – 10,001+ employees
- Headquarters – Maharashtra
- Type – Public Company
- Founded – 1897
- Specialties – Real Estate, Chemicals, FMCG, Industrial Engineering, Agro Chemicals, and Retail
Pirojsha Godrej, Adi Godrej’s son, represents one side, while Jamshyd, together with Godrej & Boyce’s chief financial officer, Purvez Kesri Gandhi, represents the other. Uday Kotak, Nimesh Kampani, and legal specialists Zia Mody of AZB & Partners and Cyril Shroff are among the external consultants contacted for the reorganization, according to the reports.
Adi Godrej (79), a senior industrialist, now serves as the group’s chairman. Nadir Godrej (Adi’s brother) is the chairman of Godrej Industries and Godrej Agrovet. Jamshyd N Godrej, their cousin, is the chairman of Godrej & Boyce Manufacturing Company Ltd, the conglomerate’s main enterprise and one of India’s oldest commercial families.
It was started in 1897 by lawyer-turned-serial entrepreneur Ardeshir Godrej, who achieved success with the locks company after a string of unsuccessful businesses. The Godrej family is seeking a total large-scale divide between two parties, one commanded by Adi and Nadir and the other by Jamshyd and his sister Smitha Godrej Crishna, according to a report.
“For the past few years, the Godrej family has been working on a long-term strategic plan for the firm to assure the best value for its shareholders. We also sought guidance from other partners as part of this process. The Godrej family’s negotiations are still ongoing,” Godrej Industries Ltd (GIL) and Godrej & Boyce said in a joint statement.
In the next six months, a final ruling on the subject is expected. It is likely to entail a total asset separation on a huge scale. According to the reports, Adi Godrej’s family patriarch would prefer no change, while the younger generation wants more transparency on asset ownership. Apart from Godrej & Boyce, which is a private company, the group’s other companies, such as GIL, GCPL, Godrej Properties, and Godrej Agrovet, are all publicly traded and managed by Adi Godrej and his brother Nadir.
Adi Godrej stepped aside as chairman of GIL to become chairman of Godrej Group and chairman emeritus of GIL, prompting this event. The post was taken up by his brother, who was the managing director at the time. Adi Godrej’s three offspring have gradually gained increasing authority over the group’s enterprises. Tanya Dubash, his eldest daughter, is the group’s chief brand officer and executive director. Pirojsha Godrej is the chairman of Godrej Properties, the group’s real estate business, and Nisa Godrej is the CEO of Godrej Consumer Products Ltd (GCPL), the group’s largest subsidiary.
Must Read:-
- Upcoming List of Top Indian Web Series of 2021
- Top 10 richest player of the world 2021
- Top 10 highest-paid Indian Athletes 2021
- Top 10 highest paid CEO in the World
- Top 10 richest person of India
- Top 10 Highest Paid CEOs of India
- List Of Most Followed Facebook Pages in 2021
- The Success Story of Jeff Bezos
- Success Story Of Elon Musk
- Top 10 Business Magazine In India
- Top 10 Business Newspaper In India
- Top 10 richest billionaires in the world 2021
- Upcoming English Web Series in 2021
- Top 10 Tourist Places in India, places to visit after lockdown