The Godrej family has high-ranking advisors in Uday Kotak, the founder of Kotak Mahindra Bank, Cyril Shroff, Nimesh Kampani, and Zia Mody.
One of the main consultants for the Godrej conglomerate’s split, Uday Kotak, stated that the Godrej family have “high integrity and quality and even the next generation will flourish.”
With a net worth of $13.2 billion, Kotak ranks as the 12th richest Indian in the world. He revealed to CNBC TV18 that he has been linked to the Godrej family since 1993. “The Godrejs are renowned for their excellent moral character and craftsmanship. They approach all they do with a delicate yet fashionable flair.”
He continued by saying that he joined the Godrej Group at the time Godrej Soaps went public. The first Godrej Group company to go public was Godrej Soaps.
He declared: “Since 1993, Kotak Bank and I have had a close relationship with the Godrej family. We were privileged to introduce Godrej Soaps, the first company in the Godrej Group, to the public. We have offered guidance on a range of group and family issues over the years.”
The 127-year-old Godrej Group was peacefully divided by its original family. The conglomerate has been divided into two sections, with Adi Godrej and his brother on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other, according to a statement released by the firm on Tuesday night.
Adi Godrej, together with his brother Nadir, will maintain Godrej Industries, which consists of five listed companies. Meanwhile, his cousins Jamshyd and Smita will acquire Godrej & Boyce, which is not listed, along with its affiliates and a land bank that includes prominent properties in Mumbai.
Nadir Godrej will serve as chairman of the Godrej Industries Group, which is owned by Adi, Nadir, and their immediate families and consists of the listed firms Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences.
Jamshyd Godrej will serve as chairman and managing director of Godrej Enterprises Group, which is made up of Godrej & Boyce and its affiliates that operate in a variety of industries, including defense, furniture, IT software, and aerospace and aviation. Nyrika Holkar, 42, the daughter of his sister Smita, will serve as the executive director.
Kotak was a senior advisor to the Godrej family, along with Cyril Shroff, Nimesh Kampani, and Zia Mody. After five arduous years of negotiations, the Godrej Group’s family finally came to an agreement on all issues, bringing an end to the division.
Members of either group shall not, under the terms of the agreement, have any direct or indirect involvement in the administration and operations of the entities of the other group. The settlement also clearly states that any shares held by either group in any of the enterprises may only be sold to rivals through a non-negotiated on-market sale or with prior consent from the other group.
According to the Godrej family’s official statement, the division resulted from the younger generations’ differing views on growth and interests.
According to the settlement, the third and fourth generations of the Family Branches have different interests and viewpoints about a variety of topics, including the strategic direction, expansion, and governance of the Godrej Group Entities.
“A family settlement arrangement has been agreed upon by way of the family settlement agreement among the family branches in order to preserve mutual respect, goodwill, amity, and harmony as well as to manage diverse expectations and strategic directions desired by each family branch, each branch head acting for himself and on behalf of the other members of his concerned family branch,” the statement continued.