The Godrej Group, a multibillion-dollar company that works in everything from fast-moving consumer goods to real estate, has gone through a major reorganisation. For 127 years, the Godrej family owned the business together. Now, they have chosen to split it into two separate companies.
History of the Godrej Group
Established in 1897 by Ardeshir Godrej, the Godrej Group has a rich history of innovation and entrepreneurship. Ardeshir, along with his brother Pirojsha, started the company by manufacturing locks. Over the years, the group diversified into various sectors, including FMCG, consumer durables, real estate, aerospace, and more. The five senior members of the family—Adi Godrej, Nadir Godrej, Jamshyd Godrej, Smita Crishna-Godrej, and Rishad Godrej—held equal stakes in all group companies until the recent separation.
Reasons for the Split
The Godrej family cited "diverse interests and varying perceptions as to, among other things, the strategic direction, growth, and governance of the Godrej Group entities" as the primary reason for the split. With the third and fourth generations of the family entering leadership roles, differing visions emerged regarding the future of the group. We decided to separate to ensure harmony and allow each branch to pursue its strategic goals independently.
Future Plans of the Divided Entities
We have divided the Godrej Group into two distinct entities:
Godrej Industries Group (GIG)
- The group was led by Adi Godrej, Nadir Godrej, and their immediate families.
- The list includes listed companies such as Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences.
- Nadir Godrej will chair GIG, with Pirojsha Godrej (Adi's son) designated as the executive vice chairperson, set to take over as chairperson in August 2026.
Godrej Enterprises Group (GEG)
- The company is under the control of Jamshyd Godrej, the chairperson and managing director, Nyrika Holkar, Smita's daughter, and their immediate families.
- It encompasses unlisted companies like Godrej & Boyce Manufacturing Company and Godrej Holdings Private Limited, with interests in aerospace, durables, furniture, and more.
Brand management and non-competition agreements
- Both groups can utilise the "Godrej" brand with specific product differentiators.
- The ABG and NBG families have exclusive rights for FMCG, real estate, and related services.
- The JNG and SVC families hold exclusive rights for aerospace, durables, and other specified sectors.
- A six-year non-compete agreement restricts either family from entering the other's exclusive business areas while using the "Godrej" brand.
Businesses with the potential for both groups to operate (such as medical services) can use a shared brand name with a differentiating group identifier.
Conclusion
Godrej Group's split is a big change for a long-standing company. Although the split makes it easier to align different goals within a big family-owned business, it also gives both GIG and GEG exciting chances to follow their own growth strategies. There is hope for the future, as both groups use their strengths to make their own paths in their own areas.
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