2024-05-01 15:48:48
New Delhi: Godrej Family, one of the oldest and largest corporate houses of the country, is going to be divided. The Godrej family has struck a deal to divest its Rs 59,000 crore ($7 billion) locked-in land development group. The 127-year-old Godrej Group, spanning from soaps and home appliances to real estate, will be divided. Under the agreement, Adi Godrej and his brother Nadir Godrej will get full ownership of the five listed companies of Godrej Group – Godrej Consumer Products, Godrej Properties, Godrej Industries, Godrej Agrovet and Astec Lifesciences. Whereas Jamshed and his sister Smita will get complete control of unlisted companies and land bank. His second cousin Rishad also has stakes in Godrej companies, but has no formal role in the company.Before independence, these companies were famous in the country, today their name has been erased.
The distribution will happen like this
Both the arms hold shares in group companies and have also been on the boards of each other’s companies, but will now transfer their equity stake after stepping down from the boards to ensure a clear separation. Adi and Nadir will sell their shares in Godrej & Boyce to Jamshed and Smita, while Smita and Jamshed will give their shares in Godrej Consumer Products and Godrej Properties to Adi and Nadir. Rishad, who is unmarried, will reportedly distribute his property equally among other family members after his death. According to a statement issued by the family late in the evening, both parties will continue to use the Godrej brand for their respective businesses.
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this much is at stake
Adi, Nadir, Jamshed, Smita and Rishad hold about 10 per cent stake each in Godrej & Boyce, while about 24 per cent stake is held by Pirojsha Godrej Foundation (a philanthropic trust created by the family) and 27 per cent stake is held by Godrej Investments. Is. The market capitalization of the five listed companies is Rs 2.4 lakh crore ($29 billion). Their revenue is more than Rs 41,750 crore ($5 billion). Their profit is Rs 4,175 crore ($500 million). Godrej & Boyce’s revenue is about $2 billion and pre-tax profit is $72 million.
Said this in the statement
Godrej & Boyce and its subsidiaries will now be controlled by Jamshed, Smita’s daughter Nairika Holkar and their close family. Godrej Industries and the other four listed companies will be controlled by Adi, Nadir and their immediate families. Adi’s son Pirojsha will be the executive vice-chairman of GIG (Godrej Industries Group) and Nadir will succeed Godrej as chairman in August 2026, the statement said. It remains to be seen how the group’s real estate assets worth over Rs 3,000 crore under Godrej & Boyce will be divided between the two parties.