Godrej split: CCI approves realignment of various entities within Godrej group

18/06/2024

Almost a month after the 127-year old Godrej Group announced its amicable family splitting of the empire, the Competition Commission of India (CCI) on June 18 (Tuesday) approved the proposed realignment of various entities within the group.

The proposed combination relates to realignment of interests, legal ownership, and management of various entities within the Godrej group pursuant to an inter-se arrangement between the members of the Family Branches viz., Adi Godrej and family (ABG Family), Nadir Godrej and family (NBG Family), Jamshyd Godrej and family (JNG Family) and Smita Crishna and family (SVC Family). Such realignment will take place in accordance with the Family Settlement Agreement dated 30thApril 2024 (FSA) executed by the Family Branches (Proposed Combination).

The target enterprises forming part of the Proposed Combination include:

(i) the GILAC Group Entities and (ii) G&B Group Entities.

GILAC Group Entities include:

(a) Godrej Industries Limited

(b) Godrej Consumer Products Limited

(d) Godrej Agrovet Limited

(e) Godrej Seeds & Genetics Limited

(f) Innovia Multiventures Private Limited

(g) Astec Lifesciences Limited and (h) Anamudi Real Estates LLP.

G&B Group Entities include:

(a) Godrej & Boyce Manufacturing Company Limited;

(b) Godrej Holdings Private Limited;

(d) RKN Enterprises.

On May 1, the group declared that Adi Godrej and Nadir Godrej will get control of all the listed entities in the group, while Jamshyd Godrej and Smita Crishna will take over the unlisted entities comprising Godrej Boyce & its affiliates, which includes the over 3,000 acres of land owned by the group in Mumbai.

In a statement, the group said: “The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members. This will help maximize strategic direction, focus, agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.”

Both groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage, according to the statement.

“Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses,” said Jamshyd Godrej in the statement.

The listed entities under Godrej Industries Group (GIG) are Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences. In addition Godrej Seeds and Genetics and Innovia Multiventures will be part of the group of which Nadir Godrej will be the chairperson and Pirojsha Godrej will be the Executive Vice Chairperson and will succeed Nadir Godrej as the Chairperson in August 2026.

Jamshyd Godrej, chairperson and managing director of Godrej Enterprises and Nyrika Holkar executive director, will be controlling businesses that span aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, EPC Services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, IT, software as well as infrastructure solutions.

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