The Godrej family has begun the formal division of the century-old conglomerate by exiting the boards of each other’s companies and will soon divest their stakes, The Economic Times reported, quoting people with knowledge of the matter.
Moneycontrol couldn't independently verify the report.
The separation is between two branches of the founding family with Adi Godrej and his brother Nadir on one side and their cousins Jamshyd Godrej and his sister Smita Godrej Crishna on the other.
Earlier this year, Adi and Nadir Godrej resigned from the Godrej & Boyce Board and Jamshyd Godrej relinquished his seat in the boards of GCPL and Godrej Properties.
Godrej Industries & Associates, led by Adi and Nadir Godrej, and Godrej & Boyce (G&B), led by Jamshyd Godrej and his sister are the two main groups. As per the report, 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 Rs 3,400 crore, mostly in prime land of Mumbai suburbs, will remain under Godrej & Boyce (G&B), and a separate agreement will be worked out to govern the ownership rights, the report said.
The Godrej Group has five publicly listed companies: GCPL (Godrej Consumer Products Ltd), Godrej Properties, Godrej Industries, Godrej Agrovet and Astec Lifesciences. G&B (Godrej and Boyce) is a private company.
The conglomerate operates businesses in engineering, appliances, security solutions, agricultural products, real estate and more.
Also Read | Godrej Group in advanced talks to finalise division of diverse businesses
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