Business News: Indian entrepreneur and investor Ronnie Screwvala praised Godrej’s succession plans, noting that one of India’s oldest businesses is providing an opportunity for future generations to uphold the brand. The 127-year-old conglomerate recently underwent a split into two groups — Godrej Industries Group and Godrej Enterprises Group.

“Guess only the Parsis know how to do this right ? – low profile, respectful of each other, and a win-win for all,” Ronnie commented on X (formerly Twitter).

Guess (only) The Parsis know how to do this right ? – low profile – respectful of each other – and win win for all. – pic.twitter.com/cDX3Nmj0UG

— Ronnie Screwvala (@RonnieScrewvala) May 5, 2024

Social media users echoed Ronnie’s sentiments, applauding the graceful manner in which the division was executed. “So true, executed the division so graciously,” one user commented, while another added, “The Parsis always know how to live and deal with grace.”

“True. Parsis built some of the finest business empires while contributing to the Indian economy over the last 70 years. Pure grace and business acumen, runs in their families I guess,” remarked a third user.

Godrej’s succession plan post-split has been disclosed by the Godrej family. Adi Godrej and his brother Nadir Godrej will retain control of the listed companies on the stock exchange.

Pirojsha Godrej, son of patriarch Adi Godrej, is slated to assume the role of chairman of the Godrej Industries Group in August 2026. Presently, at 43 years old, he serves as the executive chairperson of Godrej Properties, Godrej Fund Management, and Godrej Housing Finance, and also holds a non-executive director position at Godrej Consumer Products and Godrej Agrovet.

Nyrika Holkar, daughter of Smita Godrej Crishna, is set to represent Godrej Enterprises Group, while Nadir Godrej will assume the chairmanship of Godrej Industries Group (GIG), along with Godrej Seeds and Genetics, Innovia Multiventures, and all associated subsidiaries and joint ventures, as per a report by Business Standard.

The next generation of these multibillionaire families have also taken on significant leadership roles within the firm. Nisaba Godrej, daughter of Adi Godrej, holds the position of executive chairman at Godrej Consumer Products. Meanwhile, Tanya Dubash, Adi’s elder daughter, serves as executive director of Godrej Industries, the primary company of the Adi/Nadir family, and leads the group’s brand initiatives.

Jamshyd Godrej will assume the roles of chairperson and managing director of Godrej Enterprises Group, with Nyrika Holkar appointed as its executive director. Additionally, Freyan Crishna Bieri, Smita’s daughter, serves as a non-executive director of Godrej & Boyce, while Navroze Godrej, Jamshyd’s son, holds a similar position in an unlisted company holding extensive land tracts in Mumbai.

Godrej split

The recent split of assets within the Godrej family has resulted in the formation of two distinct business groups. One group, known as the Godrej Industries Group (GIG), led by brothers Adi and Nadir Godrej, will oversee listed companies such as Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences. On the other hand, the Godrej Enterprises Group (GEG), headed by cousins Jamshyd Godrej and Smita Crishna, will focus on unlisted Godrej & Boyce, which encompasses numerous divisions.

As part of the family agreement, a non-compete clause has been established for six years, except in the realm of real estate. Following this period, they are permitted to enter each other’s markets, albeit not under the Godrej brand.

Moreover, the agreement delineates specific sectors exclusive to each group. GIG retains rights in established sectors such as fast-moving consumer goods, financial services, pharmaceuticals, diagnostics, and chemicals, while GEG holds privileges in defense, consumer durables, medical devices, construction materials, interior design, electric mobility, software services, and security products.

In the real estate sector, both groups intend to collaborate, potentially with GIG overseeing property marketing and GEG managing land development, a model that has previously proven successful under an earlier agreement.