Nisaba Godrej resigns as independent director of VIP Industries

Godrej Group scion Nisaba Godrej has tendered her resignation as an Independent Director of VIP Industries Ltd with effect from June 3, 2024. Consequently, she shall also cease to be a member of Nomination & Remuneration Committee of the company.

Established in 1968, VIP Industries Limited is amongst the world’s leading manufacturers and retailers of luggage, backpacks and handbags and an established leader in the organised luggage market in India. In addition to its presence in India, it has a growing global footprint with products supplied in over 45 countries.

Nisaba Godrej is the Executive Chairperson of Godrej Consumer Products. She has been a key architect of GCPL's strategy and transformation in the last decade. She is also the Chairperson of Teach for India and sits on the board of Godrej Agrovet, Bharti Airtel and Mahindra and Mahindra. She has a BSc degree from The Wharton School at the University of Pennsylvania and an MBA from Harvard Business School.

Recently, the Godrej family that controls the homegrown locks-to-soap conglomerate reached an agreement to split the company into two branches. The family decided to restructure its shareholding within the conglomerate, dividing operations into two distinct entities: Godrej Enterprises and Godrej Industries.

Adi Godrej and his brother Nadir will stay at the helm of the listed entities which will come under Godrej Industries. Cousin Jamshyd Godrej gets the control of unlisted companies and the land bank which will come under Godrej Enterprises.

The agreement submitted to the exchanges also addressed issues of Royalty, Brand Usage and Land Bank development.

"To preserve mutual respect, goodwill, amity and harmony and to manage diverse expectations and varied strategic directions desired by each Family Branch, the Family Branches have agreed upon a settlement arrangement amongst the Family Branches," the Family Settlement Agreement (FSA) said.

A recurring observation among India Inc leaders regarding the family's decision and execution of the conglomerate split, is about how they have handled the matter. Harsh Goenka on April 30, 2024, said, "The Godrej family settlement was ‘locked’ today with the elegance and dignity that the family is known for. No controversies, just all clean like their soaps. Good Knight!"

Established in 1897, Godrej Industries Limited is a holding company with wide interests in consumer goods, agriculture, real estate, chemicals and financial services, and also acts as the incubator for new businesses. The group has five listed firms - Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec LifeSciences. Godrej Consumer Products, which makes iconic brands like Cinthol and GoodKnight, is the biggest among the listed firms, with a market capitalisation of Rs 1.26 lakh crore as on April 30.