The Godrej Group announced entering into a family settlement agreement (FSA) and a brand & non-compete agreement, to split the conglomerate into two branches.
According to the FSA, Adi Godrej and Nadir Godrej will keep the listed companies. The unlisted company Godrej & Boyce Manufacturing Company will go to the families of Jamshyd Godrej and Smita Godrej.Godrej & Boyce (G&B) and its affiliates, have presence across multiple industries spanning 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.
The shareholdings of family members will be realigned across companies to reflect their inherited businesses. Both groups will continue to use the Godrej brand. The agreement also addresses issues of Royalty, Brand Usage and Land Bank development.
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, said the company.
The realignment will be implemented after the relevant regulatory approvals have been obtained, stated the filing.
Commenting on the future outlook, Jamshyd Godrej said: 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.
Nadir Godrej said Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause - the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better - continue to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility.
Both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage, added the statement.
Shares of Godrej Industries slipped 7.15% to Rs 892 and Godrej Properties declined 4.37% to Rs 2,532.80 on the BSE. On the other hand, Godrej Agrovet rose 3.58% to Rs 564.15 and Godrej Consumer Products added 1.11% to Rs 1,233.
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