LONDON: Pari-war- Godrej Group headed for split of $4.1 billion family conglomerate

LONDON: The $4.1 billion Godrej Group,
spanning from soaps and home appliances to real estate, is headed for a split
between the brothers, sources aware of the matter said, citing external advice
the family has sought for an amicable division of the 124-year-old
conglomerate.

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.

It was
founded in 1897 by lawyer-turned-serial entrepreneur Ardeshir Godrej, who after
a few failed ventures met success with the locks business.

According
to a report, the group is looking for a complete large-scale division between
two groups — one led by Adi and Nadir, and the other by Jamshyd and his sister
Smitha Godrej Crishna.

When
reached for comments, a joint statement by the family said,”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.”

Without
sharing further details, the statement added, “As part of this exercise,
we have also sought advice from external partners. These discussions between
the family remain ongoing.”

People
close to the family, including bankers Nimesh Kampani and Uday Kotak, along
with well-known personalities from the legal field like Zia Mody of AZB &
Partners and Cyril Shroff, are reportedly being consulted by the family for the
exercise.

According
to the group, around 23 per cent of the promoter holding in Godrej Group is
held in trusts that invest in environment, health and education spheres.

Among the
major companies of the group are the flagship unlisted engineering firm Godrej
& Boyce Mfg Co Ltd and listed entities such as Godrej Consumer Products
Ltd, Godrej Agrovet, Godrej Properties and Godrej Industries Ltd.

While
there are cross holdings in each of the companies by the family members, the
side of Adi and Nadir run the listed entities such as Godrej Consumer Products
Ltd, Godrej Agrovet, Godrej Properties and Godrej Industries Ltd. On the other
hand, Godrej & Boyce Mfg Co Ltd comes under Jamshyd.

Patriarch Adi Godrej has been
gradually stepping aside while his children have taken various responsibilities in the group.

His
eldest daughter Tanya Dubash is executive director and chief brand officer for
the group. Youngest daughter Nisaba Godrej is currently executive chairperson
of Godrej Consumer Products Ltd, while son Pirojsha is the chairman of Godrej
Properties.

Earlier
in August, Adi had announced stepping down as chairman as well as from the
board of directors of Godrej Industries Ltd, passing on the baton to his
younger brother Nadir.

While
Jamshyd’s sister Smitha has not played an active role in the business, her
husband Vijay Crishna is a non-executive director of Godrej & Boyce,
besides being director of Godrej Industries and Godrej Agrovet.

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.