"No controversies, just all clean like their soaps," says Harsh Goenka on Godrej family's pact to split the conglomerate
Adi and Nadir Godrej will control listed companies while cousin Jamshyd gets the control of unlisted entities and the land bank. The agreement submitted to the exchanges addresses issues of Royalty, Brand Usage and Land Bank development.
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"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!" tweeted Harsh Goenka Harsh Goenka on April 30.
The Godrej family that controls the homegrown locks-to-soap conglomerate has reached an agreement to split the company 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, as per the pact shared with the stock exchanges on April 30.
The agreement submitted to the exchanges addresses 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.
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!
— Harsh Goenka (@hvgoenka) April 30, 2024
The shareholding interests and directorships between various entities will now need to be realigned before the effective date of the FSA and the approval of Competition Commission of India.
As part of the realignment, members of Adi and brother Nadir's Family will make an open offer to the shareholders of Astec Lifesciences.
As part of to the realignment, businesses are to be carried out by existing Family Groups smoothly till the effective date. The business empire also stated that the Godrej trademark is equally owned and shared by both Family Groups.
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.
