The Godrej Group, a huge company with many different businesses, such as real estate and consumer products, is going to split into two parts. This decision came after the family members who run the 127-year-old company, like Adi Godrej and his cousin Jamshyd Godrej, agreed to divide things. They need to sort out who owns what in the different companies and divide the businesses and assets between them.
The family members, like Adi, Nadir, Jamshyd Godrej, and Smita Godrej Crishna, who are in charge of different parts, have all agreed on this plan. They made an agreement called a family settlement agreement (FSA) and another one about the brand and not competing with each other.
Godrej Group Serves 1.2 Billion Consumers Worldwide
The Godrej Group serves a whopping 1.2 billion customers all over the globe. Based on Tuesday’s closing prices, the family’s stake in five of the group’s listed companies is worth a massive Rs 1.53 trillion, with a combined market value of Rs 2.44 trillion.
Beginnings of Godrej Group
- The story starts in 1897 with Ardeshir Godrej, originally a lawyer but turned entrepreneur. He decided to make locks right here in India, which was a big deal since India used to import locks from other countries at that time, especially since it was still under British rule. By making locks locally, Ardeshir changed how people thought about security and showed the importance of being self-reliant.
- In 1901, Godrej introduced locks to the market, but British-owned newspapers wouldn’t advertise them because they claimed they were as good as imported locks. Only Indian papers like Kesari, Tribune, and Bombay Samachar supported Ardeshir Godrej’s locks.
- By 1902, Ardeshir had made safes using his lock expertise.
- 1908, they patented the world’s first springless locks. About ten years later, before launching the popular soap brand Cinthol, they made the world’s first vegetable oil soap called Chavi, which was also animal fat-free, promoting ‘Swadeshi’ and ‘ahimsa.’
- Freedom fighters like Annie Besant and Rabindranath Tagore endorsed Godrej’s products and urged people to support Indian-made goods.
- Mahatma Gandhi even wrote a letter saying he respected Godrej so much that he couldn’t support competitors if it would harm the company.
- Godrej also sold furniture, including steel almirahs with built-in safes, which became a popular wedding gift.
- India’s first general elections were a big deal for Godrej. They were asked to make a whopping 1.7 million ballot boxes for the elections.
Godrej Group’s Expansion and Social Responsibility
In 1990, the Godrej Group started doing more than just making consumer goods. They got into property and real estate, creating Godrej Properties. The next year, they started Godrej Agrovet, which deals with agriculture. In 2016, Godrej Agrovet became a publicly listed company on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Apart from making money, the Godrej Group also cares about helping society. It follows Good & Green, which focuses on social responsibility. About 23% of the company’s shares are put into trusts that help protect the environment, improve health, and support education.
Leadership and Family in Godrej Group
According to Forbes, in 2024, both Jamshyd Godrej and Adi Godrej have a net worth of $3.8 billion each.
- At the top of the Godrej Group is Adi Godrej, who is 82 years old and the chairman emeritus. He used to be the chairman of Godrej Industries, the main company of the group, but stepped down in 2021.
- Under a family agreement called FSA, Nadir Godrej will lead the Godrej Industries Group (GIG). This group includes listed companies like Godrej Industries, Godrej Consumer Products, Godrej Properties, and more. Nadir, Adi Godrej, and their families will be in charge.
- Pirojsha Godrej, Adi Godrej’s son, will become the executive vice chairperson of GIG and will succeed Nadir Godrej as chairperson in August 2026.
- Jamshyd N Godrej, who joined the company board in 1974 after studying mechanical engineering, will stay as chairman and managing director of Godrej & Boyce. He’ll lead Godrej Enterprises Group (GEG) and Nyrika Holkar as executive director.
- GEG includes companies like Godrej & Boyce Manufacturing Company and Godrej Infotech Limited. Jamshyd Godrej and Adi Godrej have been honoured with the Padma Bhushan award for their contributions to India’s industries.
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