Godrej
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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
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.
