Godrej Group announces company split and director board reshuffle

Mumbai: Godrej Group, a legacy brand familiar to every Indian household, has announced its ownership realignment. With this, the 127-year-old group will split into two entities - one led by Adi Godrej and his brother Nadir and the other by their cousins Jamshyd and Smita. This realignment will be executed following the necessary regulatory approvals,the company has said.

Adi Godrej, Nadir Godrej, and their immediate families will oversee Godrej Industries Group (GIG). GIG includes Godrej Industries Ltd, Godrej Consumer Products Ltd, Godrej Properties Ltd, Godrej Agrovet Ltd, and Astec Lifesciences Ltd. Pirojsha Godrej will serve as the executive vice-chairperson of GIG and is set to succeed Nadir Godrej as the chairperson in August 2026.

On the other hand, Jamshyd Godrej and his niece Nyrika Holkar, and their immediate families will have control over the Godrej Enterprises Group (GEG), comprising  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, engineering, procurement, and construction (EPC) services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, it, software as well as infrastructure solutions.

Jamshyd Naoroji Godrej and his sister Smita Crishna Godrej-controlled Godrej & Boyce will hold the exclusive construction rights over a vast land bank, including a prime 3,000-acre property in Mumbai they got as part of the family agreement that split the Godrej empire, as per sources and regulatory filing.

While both groups will continue to use the Godrej brand name, they have signed a six-year non-compete pact that will restrict them from entering each other's sectors. Once this period concludes, they can explore other sectors but must refrain from using the Godrej name for such ventures, as per sources and regulatory filings. Sources said the split was done through the transfer of shares, not value.

Adi and Nadir Godrej will divest their stakes in Godrej & Boyce to the other branch. Jamshyd Godrej and his side of the family will transfer interests in Godrej Consumer Products (GCPL) and Godrej Properties to their cousins through a family arrangement.

Real estate worth thousands of crores of rupees, mostly in prime Mumbai suburbs, will remain under Godrej & Boyce (G&B), and a separate agreement will be worked out to govern the ownership rights.

Sources said G&B will own the sole construction right over all the land bank, while Godrej Properties of the other faction will have the right to market. Godrej Properties will have no construction rights. It owns 3,400 acres of land in Mumbai, including a 3,000-acre parcel in Vikhroli, Mumbai.

The historical roots of the Godrej Group trace back to Ardeshir Godrej, a lawyer-turned-entrepreneur, and his brother, who succeeded in locksmithing in 1897 after earlier ventures in handcrafted medical devices failed. The group's legacy passed from Ardeshir to his younger brother Pirojsha and to Pirojsha's children - Sohrab, Dosa, Burjor, and Naval. Eventually, control shifted to Burjor's descendants (Adi and Nadir) and Naval's descendants (Jamshyd and Smita) over time due to the absence of heirs in other branches of the family.

The split necessitated resignations from the boards of companies within rival camps. Adi and Nadir Godrej resigned from their positions on the Godrej & Boyce Board, while Jamshyd Godrej stepped down from GCPL and Godrej Properties boards to facilitate this restructuring.
(With PTI Inputs)