Switch of baton: New-gen leaders to take the reins as Godrej group splits

Whereas 43-year-old Pirojsha Godrej, son of patriarch Adi Godrej, is about to take over as chairman of the Godrej Industries Group from 2026, Nyrika Holkar, the 42-year-old daughter of Smita Godrej Crishna, has emerged because the face of Godrej Enterprises Group.

Nadir Godrej would be the chairperson of Godrej Industries Group (GIG), comprising listed corporations like flagship Godrej Industries, Godrej Shopper Merchandise, Godrej Properties, Godrej Agrovet, and Astec Lifesciences, in addition to Godrej Seeds and Genetics, Innovia Multiventures, and all their subsidiaries and joint ventures.

Pirojsha, who will probably be government vice-chairperson, will succeed Nadir as chairperson in August 2026, in response to the assertion issued by the Godrej group on Tuesday.

The Adi/Nadir household (ABG/NBG household) will purchase out the shares held within the 5 listed corporations by the Jamshyd/Smita household (JNG/SVC household). Every household would promote the shares they maintain personally and/or by way of trusts to the opposite household, and these transactions can be tax-neutral, stated a supply. The Adi/Nadir household introduced an open provide for Astec Lifesciences on Wednesday. Pursuant to the realignment underneath the household settlement settlement (FSA), the administration and management of corporations underneath the GIG group will go to the ABG/NBG household.

At current, Pirojsha is the chief chairperson of Godrej Properties, Godrej Housing Finance, and Godrej Fund Administration, and a non-executive director of Godrej Shopper Merchandise and Godrej Agrovet. Having graduated from the Wharton Faculty of Enterprise in 2002, Pirojsha joined Godrej Properties in 2004, and was appointed the chief government of the actual property growth agency in 2012. In 2017, he grew to become government chairperson of Godrej Properties.

The subsequent technology of the multi-billionaire households additionally joined the group throughout varied corporations and took key management positions, with Adi Godrej’s daughter Nisaba Godrej operating Godrej Shopper Merchandise as its government chairperson. Tanya Dubash, Adi’s elder daughter (additionally the eldest little one), is the chief director of Godrej Industries, the flagship of the Adi/Nadir household. She can also be the group’s chief model officer.

However, Godrej Enterprises Group, owned by Jamshyd Godrej and his sister Smita Godrej Crishna, will now be managed by Jamshyd as its chairperson and managing director, Nyrika Holkar as government director, and their rapid relations.

Holkar, who graduated from Colorado Faculty within the US and later obtained regulation levels from College Faculty London, UK, joined the board of Godrej & Boyce Manufacturing Firm in April 2017.

Freyan Crishna Bieri, daughter of Smita Godrej Crishna, is a non-executive director of Godrej & Boyce. Likewise, Navroze Godrej, son of Jamshyd, is a non-executive director of the unlisted firm with massive tracts of land in Mumbai.

Pursuant to the FSA, the administration and management of Godrej & Boyce, Godrej Holdings Personal Restricted and Godrej Infotech, together with their respective subsidiaries and joint ventures, and RKNE Enterprises, will probably be with the JNG/SVC household.

One acre of land in Vikhroli, stated to an actual property analyst on Tuesday, is priced at Rs 70 crore to Rs 80 crore. So, the worth of the 1,000 acres would work out to Rs 70,000 crore to Rs 80,000 crore. Nadir may retain a 2.5 per cent stake in Godrej & Boyce for sentimental causes, contemplating that it’s the oldest group firm, stated a supply.

The Godrej household had acquired the Mumbai land parcel in early Nineteen Forties from the Bombay Excessive Court docket receiver. Initially given by the East India Firm within the 1830s to a Parsi service provider, Framjee Banaji, it had come up on the market in 1941-42.

Godrej Properties, a listed entity, is creating a few of the Godrej & Boyce land together with different tasks throughout Mumbai, together with the redevelopment of a movie studio of the late actor Raj Kapoor which the Godrej household now owns.

Earlier than the transaction was introduced on Tuesday, the 5 senior members of the Godrej household — Adi (82), his brother Nadir (73), their cousin Jamshyd (75), his sister Smita Godrej Crishna (74), and one other cousin Rishad Godrej (72) — had equal stakes in all group corporations and property.

Other than a transparent succession planning and untangling of property, the Godrej FSA additionally paved the best way for model utilization and a non-compete settlement. On the utilization of the Godrej model, the ABG and NBG household could have unique rights to undertake, use, personal and register the ‘Godrej’ identify and model in companies like fast-moving client items (together with cosmetics, home and cleansing provides, sanitary care, toiletries), meals & drinks, dairy merchandise & providers, monetary providers, prescription drugs, pharmacy, diagnostics, sexual wellness, agriculture and agriculture-related providers, fertilisers, chemical substances, oils & fat, and so forth.

The JNG/SVC household, alternatively, could have unique rights to undertake, use, personal and register the ‘Godrej’ identify and model in companies like house, aerospace, defence, furnishings, durables, heavy engineering, locks and architectural {hardware}, EPC providers, development supplies, dwelling and workplace automation providers, dwelling and business inside design providers, medical units, software program options, IT/ITeS, machines, power, electrical mobility enterprise, merchandising machines, safety merchandise and options, intra-logistics, transmission methods, and so forth.

The 2 households have agreed to a six-year non-compete settlement and likewise on sure non-compete protections for his or her current and unique companies, which can apply for six years from the ‘efficient date’. After the non-compete interval, a household group might enter into the unique enterprise of the opposite household group, with out using the ‘Godrej’ model (together with of their company/entity names), Tuesday’s assertion stated.

The trouble of the settlement was to minimise cross-shareholdings between the 2 households throughout group corporations. Although some small cross-holdings may stay with relations of the opposite group, the latter can be handled as some other (public) shareholders and never be categorized as promoters. Shares of the corporate held by members of the opposite group on or after the ‘efficient date’ usually are not permitted to be transferred to competitor(s) recognized underneath the FSA, besides both with the prior consent of the heads of the ABG and NBG households or by a non-negotiated on-market sale.

Watch: Godrej group splits after 127 years, who will get what?