The Godrej Family, a titan in the Indian industrial landscape, has just announced the split of the 127-year-old conglomerate into two separate entities. The news broke out on Tuesday following a long meeting held by the family. After the meeting, now there are 2 separate Godrej entities, Godrej Enterprises Group and Godrej Industries Group. Godrej Group is one of the oldest companies in India and has helped shape the country into what it is now.
According to a statement by the group, the Godrej Group will split into two entities, with Adi and his brother Nadir holding one entity and his cousins Janshyd and Smita holding the other entity. While Adi Godrej and his brother Nadir will hold Godrej Industries, which comprises 5 listed companies, his cousins Jamshyd and Smita will take control of unlisted Godrej & Boyce, along with the companies affiliated with it and a land bank that includes prime properties in Mumbai. Now, let’s have a look at what comes under these separate entities.
Godrej Enterprise Group: This group will have Jamshyd as chairperson and Nyrika Holkar, his sister Smita’s daughter, as executive director. It comprises Godrej & Boyce and its affiliates, which span multiple industries, such as aerospace and aviation, defence, IT software, and furniture. Moreover, the families will also hold 3,400 acres of prime land in Mumbai. The land includes 3000 acres in Vikhroli, with 1,000 acres of free land and 1,750 acres of mangrove trees. However, the rest of the land has already been encroached upon. The 1,000 acres of free land is estimated to have over 1 lakh crore development potential.
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Godrej Industries Group: This group will have the core business of the conglomerate and will have Nadir as the group’s chairman. The group will be controlled by Nadir, Adi and their immediate family, like Adi’s son, Pirojsha Godrej, who will also replace Nadir as the group’s chairman in 2026. This particular group includes listed companies like Godrej Industries, Godrej Properties, Godrej Agrovet, Astec Lifescience and Godrej Consumer Products, which created the first indigenous soap in India using vegetable oil.
This is a new direction for the conglomerate and for the family, and the next few months will tell how investors will receive this split. Moreover, this split can also positively or negatively affect Godrej’s listed companies’ stock prices.
