127-year old Godrej family business empire spans across real estate to consumer products
Mumbai: The Godrej family has reached an agreement to split the conglomerate into two branches, with Adi and brother Nadir keeping the listed entities while cousin Jamshyd gets the control of unlisted companies and the land bank.
Market sources said that it is an amicable split of the 127-year old family business empire and they don’t think that there is any noticeable impact of the group companies stocks on bourses.
Godrej family’s business interests run from real estate (Godrej Properties) to consumer products with marquee brands such as Godrej Powder Hair Dye, Cinthol, Godrej Fair Glow, Godrej Ezee and Godrej Shikakai soap under its fold.
“There is a clear split within the Godrej family, which is always taken positively by investors. This clear division within the 127-year old Godrej empire will remove any overhang as regards the stocks and there could be a possible rerating of the Godrej group,” said a market veteran.
At the bourses, meanwhile, most of the group stocks have performed well thus far in calendar year 2024 (CY24). Godrej Properties has been the top performer with a near 32 per cent rise in CY24, followed by Godrej Industries (up 29 per cent), Astec Lifesciences (17 per cent) and Godrej Consumer Products (8 per cent), shows ACE Equity data.
Godrej Agrovet (down 2.3 per cent) has been the only loser in this pack.
The S&P BSE Sensex, on the other hand, moved up a tad over 3 per cent during this period, shows data.
According to the plan, listed entities including Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences will have Nadir Godrej as chairperson. In control, besides Nadir Godrej will be Adi Godrej, and their immediate families.
The list of companies under their control also includes Innovia Multiventures Private Limited, Godrej Seeds and Genetics, and Anamudi Real Estates, along with their respective subsidiaries and joint ventures.
The split in the Godrej group, said U R Bhat, co-founder & director at Alphaniti Fintech, has been done amicably without any bad blood, which is an important thing to note.
“This is how big joint properties have to be divided. That said, I do not think there will be any major reaction in the stock prices in the short-to-medium term, as it is business as usual for all the companies in the Godrej fold. Those who were managing these companies till now will continue to do so going ahead as well. What the clear split in the Godrej group does is to put all speculation to rest, and to that extent the overhang on the stocks, if any, is over,” Bhat added.
