126 year old Godrej Group will soon be divided, it started by selling locks in Mumbai, know what is the latest update.
New Delhi: Godrej Group, with a valuation of Rs 1.76 lakh crore, started its industrial journey 5 decades before independence. The company started its journey by selling locks in Mumbai. The group is said to be in the advanced stage of talks to complete the formal separation of its various businesses. Top industry officials have given this information to ET.
These two groups are in Godrej family
There are two groups in Godrej Family. Godrej Industries & Associates is led by Adi Godrej and his brother Nadir. Meanwhile, Godrej & Boyce Manufacturing Company (G&B) is being watched by cousins Jamshed Godrej and Smita Godrej Krishna. The two groups are likely to soon finalize the formal split of business verticals like engineering, equipment, security solutions, agriculture products, real estate and consumer products, officials said. The Family Council is sorting out some important things related to this partition.
Division of 3400 acres of land
Officials aware of the talks said that these include division of prime land parcels of about 3400 acres existing under G&B and resolving equity cross holdings. The report quoted an official as saying that there was a need to resolve some issues regarding distribution of land. He said it is difficult to transfer parcels from G&B given the tax implications. He said, ‘This division is a challenging task. How will the valuation be done and in turn work out an equitable offer for both parties. This has been the main point of conflict. The division of Indian industrial giant Godrej Group is surrounded by financial and legal challenges.
