MUMBAI: From locks to building satellites and rockets the 127-year-old Godrej group with over Rs 1.8 lakh crore in market capitalisation has come a very long way as one of the leading business families in the country that has hardly courted any controversy in its entire history. The group is heading for a tectonic change in its structure now as the family amicably decides to diverge the group's various businesses.

Godrej informed stock exchanges on April 30 that their families led by Adi Godrej and his cousin Jamshyd Godrej have agreed to divide the conglomerate into two groups under which Adi and his brother Nadir will keep the listed entities, while cousin Jamshyd will get control of the unlisted companies led by Godrej & Boyce and all other associated entities along with the massive land bank that runs into over 3,500 acres.

The settlement, which came after negotiations nearly five years ago read, "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 on a settlement among the family branches" and the extended families have termed the split as 'an ownership realignment of the shareholdings in the group companies to help maximise the strategic direction, focus, and agility, and to accelerate the process of creating long-term value for shareholders and stakeholders.'

The new entities are known as Godrej Enterprises Group led by Adi and his brother Nadir, and Godrej Industries led by Jamshyd and his sister Smita Crishna. According to the deal, Nadir Godrej, 73, will be the chairperson of Godrej Industries Group (GIG), and his son Pirojsha will be the executive vice-chairperson and will succeed Nadir as chairperson in August 2026. Jamshyd’s niece Nyrika Holkar has also been given key positions in the groups under the family settlement.

This group operates through five listed companies, Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences. Godrej Consumer is the biggest with a market capitalisation of Rs 1.26 lakh crore as of April 30.

The 75-year-old Jamshyd will head the Godrej Enterprises Group (GEG) which operates across aerospace, aviation, defence and liquid engines among others. Godrej & Boyce and the holding firm of Godrej Industries were founded in 1897 and are the main entities in the GEG. Jamshyd will be the chairman and managing director of GEG and Smita and her daughter Nyrika Holkar will be executive directors.

Further, both factions would be 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.