Godrej family reaches agreement to split conglomerate into two branches
Godrej family reaches agreement to split conglomerate into two branches
The Godrej family has an reached agreement to split the conglomerate into two branches, with Adi and brother Nadir keeping the listed entities while cousin Jamshyd gets the control of unlisted companies and the land bank, as per the pact shared with the stock exchanges on April 30, late in the evening.
The agreement submitted to the exchanges addresses issues of Royalty, Brand Usage and Land Bank development.
What the FSA States
“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.
Newsbreak Confirmed
Earlier on April 30, CNBC-Awaaz had reported citing sources that the announcement on Godrej Group’s split was in the offing and the group had agreed upon the family settlement amicably.
Details of the Agreement
The shareholding interests and directorships between various entities will now need to be realigned before the effective date of the FSA and the approval of Competition Commission of India.
As part of the realignment, members of Adi and brother Nadir’s Family will make an open offer to the shareholders of Astec Lifesciences.
As part of to the realignment, businesses are to be carried out by existing Family Groups smoothly till the effective date. The business empire also stated that the Godrej trademark is equally owned and shared by both Family Groups.
Find the details of the entire Family Settlement Agreement here.
About Godrej Group
There are two factions of the Godrej family – one is Godrej Industries & Associates, led by Adi Godrej and his brother Nadir. Godrej & Boyce Manufacturing Company (G&B) is another wing, with cousins Jamshyd Godrej and Smitha Godrej Crishna at the helm.
The conglomerate has businesses ranging from engineering solutions, home appliances, security solutions, agricultural products, real estate, and consumer products.
Established in 1897, Godrej Industries Limited is a holding company with wide interests in consumer goods, agriculture, real estate, chemicals and financial services, and also acts as the incubator for new businesses. It has a 64.89 per cent stake in Godrej Agrovet, a 23.74 per cent stake in Godrej Consumer and a 47.34 per cent stake in Godrej Properties.
The group has five listed firms – 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.