Asia’s richest banker and billionaire Uday Kotak, who was one of the key advisors for the separation of the Godrej conglomerate, said the family has “high integrity and quality and even the next generation will flourish”.
During an exclusive interview with CNBC-TV18, the Kotak Mahindra Bank founder said he had a close relationship with the Godrej family since 1993. “We are privileged to take Godrej Soaps, the first company from the Godrej Group, public. Over the years, we have advised on various group and family matters,” Kotak said. “Godrej family is a family of high integrity and quality,” the veteran banker added.
Kotak also praised the next generation of the family and said they are ready to take the group companies ahead.
“Even the next generation will flourish in the future,” he said, adding that the family has a subtle style of doing things.
The settlement negotiations, which lasted for nearly 5 years, included complex discussions on valuation of listed and unlisted companies, usage of brand name, and the ownership of the land parcel in Vikhroli, according to a report by CNBC-TV18. The report further said that the negotiations saw Cyril Shroff, Nimesh Kampani, Zia Mody along with Kotak as key advisors to the family. Also read: Godrej family reaches agreement to split conglomerate
On April 30, the group informed the exchanges that the family has reached a deal to divide the conglomerate in to two branches. According to the agreement details, Adi and brother Nadir will keep the listed entities while cousin Jamshyd will get the control of unlisted companies and the land bank. The agreement submitted to the exchanges addresses issues of Royalty, Brand Usage and Land Bank development.
Find the details of the entire Family Settlement Agreement here
"To preserve mutual respect, goodwill, amity and harmony and to manage diverse expectations and varied strategic directions desired by each Family Branch, the Family Branches have agreed upon a settlement arrangement amongst the Family Branches," the Family Settlement Agreement (FSA) said.
According to the details of the deal, Nadir Godrej, 73, will be the chairperson of Godrej Industries Group (GIG), which operates through listed companies including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences.
Godrej Consumer Products is the biggest among the listed firms, with a market capitalisation of Rs 1.26 lakh crore as on April 30.
This group will be controlled by Nadir's brother Adi Godrej and their immediate family. Meanwhile, 75-year-old Jamshyd Godrej will head the Godrej Enterprises Group (GEG), which operates across aerospace, aviation, defence and liquid engines among others. Earlier, Jamshyd also served as the managing director and chairman of privately-held Godrej & Boyce, founded in 1897.
Godrej Industries Limited is a holding company, which was established in 1897.
With inputs from Reuters
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