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The Godrej family has entered into an official agreement to split the assets of the Godrej Group into two groups. One group consists of two brothers, Adi Godrej and Nadir Godrej, while the other group consists of their cousins Jamshed Godrej and Smita Godrej Krishna. According to the terms of the deal, which was floated on the stock exchange, Adi and Nadir will acquire five listed companies of the Godrej Group, while Jamshed and Smita Godrej will acquire the unlisted companies and the land bank owned by the group.
The agreement was finalized at the end of the meeting which lasted till late evening on Tuesday. The terms of distribution of royalties, use of the Godrej brand and development of the land bank are also clearly laid down in the family settlement agreement (FSA) of the Godrej family filed with the stock exchange.
Under the terms of the deal, Jamshed Godrej and his family, including his niece Nyarika Holkar, will get the rights to run Godrej Enterprise Group (GEG). The group comprises Godrej Boys and its associate companies. The business of these companies is in various sectors. Nadir Godrej will take over as chairman of Godrej Industries Group (GIG), which comprises five listed companies – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences. The group will be controlled by Adi Godrej, Nadir Godrej and their family members.
Jamshed Godrej and his sister Smita Godrej will take over the management of Krishna GEG. Nyarika is the daughter of Smita Godrej. GIG will be managed by his cousins Adi Godrej and Nadir Godrej and their families. As per the demerger arrangement, Pirojsha Godrej will take over as the Executive Vice President of Godrej Industries and will succeed Nadir Godrej as the Chairman of the company in August, 2026.
The Godrej Group had acquired 3,400 acres of land in Vikhroli from the receiver of the Bombay High Court in the 1940s.
Godrej Group owns 3,400 acres of land in Para Vikhroli, Mumbai. In the 1940s, the group acquired ownership of the property from the receiver of the Bombay High Court. The value of this land has been estimated at billions of rupees. According to the partition system, the MoUs made from time to time for the ownership of this land will remain the same. When the land owner and development rights holder Godrej & Boyce are willing to develop the land, the project will be initiated and developed on the land, various Godrej group companies said in a joint filing.
Both the groups will transfer the shares of all the companies in each other's name. As per this arrangement, Adi Godrej and Nadir Godrej will transfer their stake in Godrej & Boyce to Jamshed and Smita Godrej. Similarly, Jamshed and Smita Godrej will also transfer their stake in five listed companies of the group in the names of Adi Godrej and Nadir Godrej. All the family members namely Adi, Nadir, Jamshed, Smita and Rishad hold 9 to 10 per cent stake each in Godrej and Boyce. Apart from this, 24 percent stake is in the name of the group's charity Pirojsha Godrej Foundation, while 27 percent stake is with Godrej Investments. Rishad Adi Godrej and Jamshed are other cousins of Godrej and hold stakes in Godrej group companies, but play no role in the group's business.
The m cap of the 5 listed companies of the group is $29 billion. The group's five listed companies have a combined market capitalization of $29 billion and a profit of $500 million against revenues of $5 billion. On the other hand, Godrej & Boyce, which is wholly owned by the holding group, made a profit of $720 million against revenues of $2 billion.
Godrej Group was established 127 years ago. Godrej Group was founded in 1897 by Ardeshir and Pirojsha Godrej. Ardeshir Godrej had no children, while Sorab Godrej, one of Pirojsha's four children, was also orphaned. Among the other three children, Dosa Godrej's son Rishad Godrej has stakes in group companies but is not active in business. Pirojsha's next children are Burjor Godrej's two children, Adi and Nadir Godrej, while Naval Godrej's last children are Jamshed and Smita Godrej. The group is currently divided between Adi-Nadir Godrej and Jamshed-Smita Godrej.