The amicable family settlement announced by the 127-year old Godrej Group, splitting the operations into two factions, has paved the way for the emergence of the next generation of leaders in the family. Under the terms of the agreement Adi Godrej and Nadir Godrej get control of all the listed entities in the group, Jamshyd Godrej and Smita Crishna have control of the unlisted entities comprising Godrej Boyce & its affiliates, which includes the over 3000 acres of land owned by the group in Mumbai.

Adi Godrej’s son Pirojsha Godrej, executive chairman of Godrej Properties and Jamshyd’s niece Nyrika Holkar have been given key positions in the groups under the family settlement.

In a statement late on Tuesday 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 settlement

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.

Under the terms of the agreement members of either group will not be directly or indirectly involved in the management and operations of the entities of the other group. The settlement also makes it clear that shares held by either group in any of the companies will not be transferred to competitors except with the prior permission of the other group, or through a non-negotiated on-market sale.

As a result of the settlement, Adi Godrej and Nadir Godrej members will make an open offer to the public shareholders of Astec Lifesciences, due to indirect change in shareholding of Astec.

Both the factions are entitled to use the ‘Godrej’ brand and logo, subject to a non-compete clause which will apply for six years from the effective date of the settlement. After the non-compete period either group can enter into the same business as the other group but without the use of the ‘Godrej’ brand.

The rationale

The reason for the split was attributed to the newer generations having diverse interests and perceptions of growth. “The third and fourth generations of the Family Branches have diverse interests, and varying perceptions as to, amongst others, the strategic direction, growth and governance of the Godrej Group Entities, the settlement said. “To preserve mutual respect, goodwill, amity and harmony and to manage diverse expectations and strategic directions desired by each family branch, each branch head acting for himself and on behalf of the other members of his concerned family branch, has agreed upon a family settlement arrangement by way of the family settlement agreement amongst the family branches.”