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May 2, 2024

Godrej Group Split: Next-Gen Leaders Set to Take Charge as Family Empire Divides

The renowned Godrej family, a stalwart in the Indian business landscape, has embarked on a significant transition with the division of its empire into two distinct groups – Godrej Industries Group and Godrej Enterprises Group. This move not only signifies a strategic realignment of business interests but also sets the stage for the next generation of leaders to assume key roles within the conglomerate.

Under the new structure, Pirojsha Godrej, 43, son of patriarch Adi Godrej, is slated to take over as chairman of the Godrej Industries Group from 2026. Meanwhile, Nyrika Holkar, 42, daughter of Smita Godrej Crishna, has emerged as the face of Godrej Enterprises Group.

Nadir Godrej will chair the Godrej Industries Group (GIG), which includes flagship companies such as Godrej Industries, Godrej Consumer Products, and Godrej Properties, among others. Pirojsha, currently serving as executive vice-chairperson, is poised to succeed Nadir as chairperson in August 2026, according to the statement issued by the Godrej group.

The restructuring involves a share buyout agreement between the Adi/Nadir family (ABG/NBG family) and the Jamshyd/Smita family (JNG/SVC family), facilitating a tax-neutral transaction. As per the family settlement agreement (FSA), management and control of companies under the GIG group will be with the ABG/NBG family.

Pirojsha, an alumnus of the Wharton School of Business, has been instrumental in leading Godrej Properties and other key entities within the group. His transition to the helm of Godrej Industries Group marks a significant milestone in the family’s succession planning.

On the other hand, Godrej Enterprises Group, under the leadership of Jamshyd Godrej and Smita Godrej Crishna, will now be controlled by Jamshyd as chairperson and managing director, with Nyrika Holkar as executive director.

Holkar, educated at Colorado College and University College London, brings a fresh perspective to the group’s leadership. Her appointment underscores the family’s commitment to fostering a new generation of talent within the organization.

The division of assets also includes key properties such as Godrej & Boyce, with extensive land holdings in Mumbai. While the ABG/NBG family retains control over listed entities, the JNG/SVC family will manage unlisted companies and associated subsidiaries.

The family settlement agreement outlines exclusive brand usage rights for each group, ensuring clarity in business operations post-split. Additionally, a six-year non-compete agreement and cross-shareholding minimization measures aim to streamline corporate governance and mitigate potential conflicts of interest.

This strategic realignment not only paves the way for seamless leadership transitions but also positions the Godrej group for continued growth and innovation across diverse sectors. As next-gen leaders step into their roles, the legacy of one of India’s most iconic business families is set to evolve while retaining its core values and commitment to excellence.

Jhumpa Lahiri

Jhumpa Lahiri

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