Godrej Group: Why is the 127-year-old business splitting? Explained
The founding family of 127-year-old Godrej Group, which spans from soaps and home appliances to real estate, on Tuesday announced an ownership redistribution of its shareholdings in the conglomerate. This realignment will take effect once the necessary regulatory approvals have been secured.
According to an agreement, Adi and his brother Nadir will retain control of Godrej Industries, which encompasses five listed firms. Meanwhile, cousins Jamshyd and Smita will inherit unlisted Godrej & Boyce along with its affiliates and a significant land bank, including a prime property in Mumbai.
As per a statement from the group, the group has been divided between two branches of the founding family: Adi (82) and his brother Nadir (73) on one side, and their cousins Jamshyd (75) and Smita Crishna (74) on the other.
Adi currently serves as group’s chairman, while his brother Nadir holds the chairmanship positions at Godrej Industries and Godrej Agrovet. Their cousin Jamshyd chairs the unlisted Godrej & Boyce Manufacturing company. Alongside, his sisters Smita Crishna and Rishad also have stakes in Godrej & Boyce, which possesses the majority of property in Vikhroli.
Why is the group splitting?
The family described the division as an “ownership realignment” of their shareholdings in the Godrej companies, as per the statement.
“The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members. This will help maximize strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders,” it said.
In 1897, Ardeshir Godrej, a lawyer-turned-serial entrepreneur, along with his brother, found success in locksmithing after unsuccessful attempts in hand-fashioned medical devices.
As Ardeshir had no children, his younger brother Pirojsha inherited the group. Pirojsha, in turn, had four children: Sohrab, Dosa, Burjor, and Naval. Over time, the group’s leadership passed to the descendants of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita), as Sohrab had no children. Dosa, who had one child named Rishad, also had no children.
Who gets what?
As per the statement, the Godrej Enterprises Group will be inherited by Jamshyd and Smita, whereas the Godrej Industries Group will be by Adi and Nadir.
“Godrej Enterprises Group (GEG) comprises Godrej & Boyce (G&B) and its affiliates, which have a presence across multiple industries spanning aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, EPC services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, IT, software as well as infrastructure solutions. This group will now be controlled by Jamshyd Godrej, chairperson and managing director, Nyrika Holkar, Executive Director, and their immediate families,” it said.
The statement further read, “Godrej Industries Group (GIG), which includes the listed companies, Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences will have Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families. Pirojsha Godrej will be the Executive Vice Chairperson of GIG and will succeed Nadir Godrej as the Chairperson in August 2026.”
As reported by PTI, sources suggest that Adi and Nadir might sell their shares in Godrej & Boyce to the other branch of the family. Meanwhile, Jamshyd and his family are expected to transfer their interests in Godrej Consumer Products (GCPL) and Godrej Properties to their cousins through a familial arrangement. The valuable real estate assets, primarily located in Mumbai suburbs, will continue to be held by Godrej & Boyce (G&B), with a separate agreement to manage ownership rights.