Revision as of 19:55, 16 August 2021

History

MG Arun , Lock, Stock and Barrel “India Today” 21/8/2017

Established in 1897

Through many of its businesses, from locks, soaps and animal feed to engines powering India's space programmes, the group has played a big role in the evolution of various industries in the country. The group has its roots in India's Independence and swadeshi movement. Founder Ardeshir Godrej failed in a few ventures before striking success with the locks business. Next came security equipment and steel furniture. From soaps, it moved to detergents and personal/ household products. Since vegetable oil was used to make soap, the byproduct, oil cake, was marketed as animal feed. With a large landholding in Vikhroli near Mumbai, the group also forayed into real estate.

The Godrej group enjoys the patronage of 1.1 billion consumers globally and commands a revenue of over $4.1 billion. In 1918, the company launched Chavi, the first soap in the world without animal fat. Another soap, Godrej No. 2, was launched in 1919. Ardeshir's explanation on the name: "If people find No. 2 so good, they'll believe No. 1 to be even better!" The Godrej No. 1 soap was launched in 1922. Godrej products were endorsed by Annie Besant and Rabindranath Tagore. Mahatma Gandhi, in a letter to a Godrej competitor, once wrote: "I hold my brother Godrej in such high regard that if your enterprise is likely to harm him in any way, I regret very much I cannot give you my blessings."

The family tree; history: 1897-2008

June 27, 2019: The Times of India

The Godrej family tree
History: 1897-2008
From: June 27, 2019: The Times of India

Godrej may see restructuring as clan differs on biz strategy

‘Younger Gen Will Want To Move In Different Directions’

Mumbai:

Consumer goods-toreal estate conglomerate Godrej could see a restructuring as differences have surfaced between family members over the way forward for the 122-yearold, $5-billion enterprise. Group chairman Adi Godrej and his brother Nadir Godrej are on one side while cousins Jamshyd Godrej and Smitha Godrej Crishna are on the other. A TV report said the clan are also split over the development of a 1,000-acre land parcel they own in Mumbai.

Investment banker Nimesh Kampani and lawyer Zia Mody are advising Jamshyd Godrej while Kotak Mahindra Bank’s chief Uday Kotak and Cyril Shroff of legal firm Cyril Amarchand Mangaldas are assisting Adi Godrej. A Godrej group spokesperson declined to comment on the matter. However, people familiar with the matter confirmed the appointment of top bankers and lawyers to mediate between the two branches of the family. The conflict may be as much a clash of personalities as a difference in world views, especially among the younger Godrejs.

The Godrej group was founded by Ardeshir Godrej and his younger brother Pirojsha Godrej in 1897. Its origins started with the sale of locks after Ardeshir read news reports about rising burglaries in Mumbai. Ardeshir died childless, while Pirojsha had four sons — Sohrab, Dosa, Burjor and Naval. Sohrab had no children. Dosa’s son Rishad is not involved in running of the enterprise, though he is a shareholder. A wildlife enthusiast and photographer, he doesn’t have any children. Burjor’s children are Adi and Nadir, who between them oversee Godrej Properties, Godrej Industries, Godrej Consumer Products and Godrej Agrovet.

Naval’s children are Jamshyd Godrej and Smitha Godrej Crishna. Jamshyd is the chairman of Godrej & Boyce, the unlisted holding company of the conglomerate. Smitha is not involved in the running of the business but her husband (Vijay Crishna) and daughter (Nyrika Holkar) are. Adi’s three children Tanya, Nisaba and Pirojsha are involved with the business, so are Nadir’s two children except the youngest Hormusji. His eldest son Burjis is with Godrej Agrovet and the second one Sohrab is with Godrej Industries. Jamshyd’s son Navroze is a non-executive director of Godrej & Boyce while daughter Raika is yet to make a formal entry into the group.

Most of the family members sit on the boards of group companies. They also directly or indirectly hold stakes in all the group entities. The family (Adi, Jamshyd, Nadir, Smitha and Rishad) own between 9% and 10% each in Godrej & Boyce, while about 24% is held by a philanthropic trust created by the family and 27% is owned by Godrej Investments. Godrej & Boyce is the largest private land owner in Mumbai. Government records show its holdings in Vikhroli, Nahur and Kurla aggregate 3,401 acres. In recent years, the group has been commercially developing large residential projects on these lands. The real estate business seems to be the primary cause of differences. Although a large chunk of it is a well-protected mangrove sprawl in Vikhroli, the state slum authority estimates that at least 300 acres near Vikhroli station have been encroached upon. Godrej acquired the land in the eastern suburbs sometime in the early 1940s from the Bombay high court receiver. This land was originally given by the East India Company to Parsi merchant Framjee Banaji in the1830s and came up for sale in 1941-42. After acquiring this land, the Godrej group started buying adjoining plots by negotiating with 200 plot owners. In the past decade, the group has become one of the leading real estate players in Mumbai.

A source close to Godrejs said there have been no visible undercurrents due to the differences. “They attend board meetings and are cordial towards each other,” said the source. Another person who knows the family, told TOI, “It was just a matter of time, the younger generation would want to move in different directions. They are fast movers and there is bound to be friction if the others can’t keep up,’’ said this person, not wishing to be identified.

“Adi is flamboyant with an international social scene. He is very clever and a sharp businessman with deep knowledge of the commodity market. Jamshyd, on the other hand, is much lower on the radar and does not enjoy society life. He prefers sailing the seas to anything else, and is simple and very hard working,’’ said the source.

“Adi’s children are all hands on in the business, very pushy and sharp. Under son Pirojsha, the Godrej Properties stock has been booming,’’ said a leading property market expert. Jamshyd, sources said, is probably grooming his niece, Nyrika. “Nyrika is a lawyer and works with Jamshyd,’’ said insiders.

YEAR-WISE DEVELOPMENTS

2021

Adi, 79, leaves board as chairman, director 

Namrata Singh, August 14, 2021: The Times of India

The Godrej  group under Adi
From: Namrata Singh, August 14, 2021: The Times of India

Adi Godrej is stepping down from the board of Godrej Industries — both as chairman and director — which makes it the last of the listed firms of the Rs 32,000-crore Godrej Group where the 79-year-old patriarch has passed on the baton to his successors.

Godrej Industries said these changes to its board will be effective October 1. His younger brother, Nadir Godrej, who is managing director of Godrej Industries, will take over as CMD of the company. Godrej Industries is the holding company, which has interests in consumer goods, agriculture, real estate, chemicals and financial services, other than incubating new businesses.

ABG, as Adi Burjorji Godrej is known, will, however, continue as chairman of the 124-year-old diversified Godrej Group and chairman emeritus of Godrej Industries.

Over the decades, ABG has nurtured the growth of these companies with his hands-on leadership style, and has also brought in topnotch professional talent to compete with multinational rivals. Under his leadership, the soaps business of Godrej has been a formidable competitor to market leader Hindustan Unilever (HUL).

Godrej Group is a conglomeration of different legal entities, some of which are listed on the stock exchanges. It is controlled by the Godrej family, with Adi Godrej’s cousin Jamshyd Godrej heading Godrej & Boyce Manufacturing Company. The part of the Group which was so far managed by Adi Godrej (Godrej Industries, Godrej Consumer Products, Godrej Properties and Godrej Agrovet) has gradually passed on to the next generation of leaders. The part of the group which was overseen directly by ABG is now over Rs 20,000-crore combined.

At a young age of 21, when Adi Godrej had taken over the reins of the erstwhile Godrej Soaps (now GCPL), as MD in 1963, the turnover was a little over Rs 2 crore. Under his leadership, where new marketing skills and strategies were deployed, the turnover of the company shot up to nearly Rs 8 crore in 1967, a growth described as “a watershed in its history” in the book on Godrej’s hundred years by B K Karanjia. By 1995, Godrej Soaps’ turnover was at a striking distance of Rs 600 crore.

Under ABG, the group has also gained broader global insights through shortterm tie-ups with MNCs like Procter & Gamble, Sara Lee and Pilsbury, among others. ABG’s leadership style was different from his predecessors and mentors, although the core purpose was strictly adhered to. If pre-Independence the Godrej Group was known for its swadeshi push, ABG looked at MNC rivals like HUL as customers to whom the group supplied raw materials for making soap.

In 2017, Godrej had stepped down from the board of Godrej Properties as well, while at Godrej Agrovet, the board is chaired by Nadir Godrej. His son, Pirojsha Godrej heads Godrej Properties.

“It has been a privilege to serve Godrej Industries for over four decades, during which we have delivered strong results and transformed our company. I am grateful to our board for their support and guidance; to all our team members whose passion, commitment and hard work has driven our success; and to all our customers, business partners, shareholders, investors, and communities, for their continued partnership. I am very confident that our best years are ahead of us, and I look forward to Nadir and our team achieving our exciting aspirations,” said Godrej.