Godrej family split into two entities | Purple Oak Advisors posted on the topic | LinkedIn (2025)

📰 The split of the 127-year-old Godrej empire hitting the headlines and causing negative sentiments in the makret reminds me of October 2023, when a similar type of succession planning backfired for the Ambanis.Reliance Limited, the largest conglomerate in the country, faced backlash from various proxy advisory firms for the appointment of Anant Ambani as a director of the firm.To understand it better, let us first go through the concept of proxy advisory firms. Proxy advisory firms, also known as proxy advisors, are independent firms that provide advice to shareholders and institutional investors on how to exercise their rights in a company.In October 2023, Institutional Shareholder Services Inc. (ISS), a proxy advisory firm, objected to the proposal of entrusting Anant Ambani to hold a board position in the conglomerate and hence asked the investors to vote against the same. Their key concern from the appointment was the fact that Anant Ambani, at just 28 years of age, had very limited experience of just 6 years working in the conglomerate and hence wasn't fit to hold a key position in the company.This came as a shock considering the fact that the nomination of Isha and Akash Ambani for the same position had raised no objections. Thereby inviting contradiction from other similar firms on the statements of ISS, emphasizing experience and age cannot be held as factors to deprive Anant of the opportunities given to his siblings.Mukesh Ambani, who had gone through a struggle of his own after his father's death, knows the importance of succession planning and hence assured all advisory firms of his decision, opposing claims of Anant's inexperience.#SuccessionPlanning #CorporateGovernance #FamilyBusiness #Ambani #Godrej #ProxyAdvisoryFirms #MarketSentiment #Leadership #LegacyManagement #CorporateCulture #BusinessStrategy #BoardAppointment #ShareholderRights #InvestmentInsights 💼🔄Share your insights on similar succession stories below! 🗣️

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A New Chapter in Legacy: Unpacking the Elegant and Strategic Godrej Family Settlement1.Historic Settlement: The Godrej family has decided to split the Rs 59,000-crore conglomerate into distinct entities.2.Family Branches: Adi and Nadir Godrej will own the listed entities while Jamshyd and Smita Godrej take Godrej & Boyce.3.Ownership Details: Each branch will have complete control over their respective businesses.4.Management Insights: Adi and Nadir, along with their children, manage the five listed companies. Jamshyd, Smita, and their families lead Godrej & Boyce.5.Share Transfers: Equity interests will be exchanged to facilitate a clean separation, stepping down from each other’s boards.6.Rishad’s Role: Rishad Godrej has no formal role in the management and plans to distribute his assets among family upon his passing.7.Brand Usage: Both sides will continue using the Godrej brand name for their businesses.8.Foundation and Investments: Pirojsha Godrej Foundation and Godrej Investments hold significant shares in Godrej & Boyce.9.Financial Overview: Listed entities have a market cap of Rs 2.4 lakh crore with substantial revenues and profits.10.Godrej & Boyce: This company alone boasts nearly $2 billion in revenue and substantial profit margins.11.Harmonious Agreement: The settlement aims to maintain family harmony and respect different visions within the family.12.Future Leadership: Pirojsha will become the executive vice-chairperson of Godrej Industries Group and chairperson in August 2026.13.Real Estate Assets: Division of real estate assets, especially those under Godrej & Boyce, remains a focal point.14.Strategic Direction: Jamshyd highlights the strong purpose of nation-building and high-tech focus for Godrej & Boyce.15.Legacy and Values: Nadir emphasizes continuing the founding values of innovation, trust, and community betterment.16.No Controversy: The separation was noted for its elegance and dignity, avoiding any public disputes.17.Regulatory Approvals: The realignment awaits necessary regulatory approvals before full implementation.18.Public Response: Positive remarks from industry figures like RPG Group’s Harsh Goenka, praising the settlement’s decorum.19.Historical Context: The Godrej Group was founded in 1897, making this settlement a significant milestone after 125 years.20.Outlook: Both branches aim to leverage their respective strengths to enhance their market presence and growth.🌳🔑 #FamilyBusiness #LegacyBuilding #StrategicDevelopment

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The elegant Godrej split: A blueprint for India Inc?Prabal Basu Roy argues in The MINT that there are other fundamental dimensions India Inc needs to consider in such family arrangements based on international experiencehttps://lnkd.in/giYDUx3k#india #corporates #strategy #governance

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We need more stories like this where you set a standard of how these things are done. As a consumer, it's so telling when you see this group peppered all over your house. The first buy, almost, for any couple in India, is a Godrej cupboard. You can have anything from all over the world, but a Godrej cupboard or a Godrej safe is a must :). As a former business journalist, you always long for positive stories that set an example like this. #corporate #business #news #godrej #storytelling

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The newspaper articles today shed light on two contrasting tales within the realm of family businesses: one showcasing the success of the Godrej group's meticulous succession planning, while the other delves into the unfortunate disputes surrounding wealth distribution in Baba Kalyani's family.Succession planning is a critical aspect for every business family, encompassing the equitable distribution of wealth and the identification and grooming of competent successors, whether from within or outside the family fold. It serves as the linchpin for ensuring the seamless transition of leadership and preserving the legacy of the business.Furthermore, the sustainability of a family business hinges on two interconnected facets: environmental stewardship through sustainable business practices and the implementation of effective succession planning to ensure business continuity across generations. Both elements are essential for safeguarding the longevity and resilience of the enterprise in an ever-evolving landscape.However, the potency of family wealth can be double-edged if not wielded judiciously. Without a clear framework for fostering a culture of fairness, transparent wealth distribution, and the timely execution of succession plans, family wealth can become a source of discord, leading to internal strife and jeopardizing the business's future prosperity.In essence, the success or failure of a family business hinges not only on its commercial prowess but also on its ability to navigate the intricate dynamics of succession planning, wealth management, and familial harmony. #FamilyBusiness #SuccessionPLanning

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Godrej family begins formal division of group, will start divestments soon: ReportFull Article Link >>> https://lnkd.in/gmdJKKwMApr 19, 2024 10:54 AM IST This separation is between two branches of the founding family with Adi Godrej and his brother Nadir on one side. The Godrej family has begun the formal division of the conglomerate by exiting the boards of each other’s companies, it was reported. The family will soon divest their stakes, […]..Latest IND....#trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Do you know - In India, 350 out of the 500 top listed companies are family-owned.And history has the proof, that disputes that happened in these family-run businesses got nasty, ultimately ruining their image and leading to shaking of the investor confidence and affecting the medium- to long-term performance of a company.However, the example of The Godrej family business split is a lesson forfamily-run businesses to adopt a more practical approach when it comes to 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐢𝐨𝐧 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐚𝐧𝐝 𝐝𝐢𝐯𝐢𝐬𝐢𝐨𝐧 𝐨𝐟 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬The Godrej family business has been sorted into an ‘enterprises group’ and an ‘industries group’. The 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞𝐬 𝐠𝐫𝐨𝐮𝐩 comprises Godrej & Boyce and its affiliates, with presence across industries such as aviation, defence and IT. It will now be controlled by Jamshyd Godrej as chairperson and managing director, 𝐍𝐲𝐫𝐢𝐤𝐚 𝐇𝐨𝐥𝐤𝐚𝐫 as executive director, and their families.The 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐞𝐬 𝐠𝐫𝐨𝐮𝐩—which includes the listed companies Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences—will have 𝐍𝐚𝐝𝐢𝐫 𝐆𝐨𝐝𝐫𝐞𝐣 as chairperson and will be controlled by 𝐀𝐝𝐢 𝐆𝐨𝐝𝐫𝐞𝐣, Nadir Godrej and their families. Both the groups will continue to use the Godrej brand. The split clearly shows that the family adopted a business-first approach while trying to accommodate the ambitions of the next generation.Article Source - https://lnkd.in/eErUirKf#successionplanning #godrej #businesssplit #organizationstructure

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"No controversies, just all clean like their soaps," says Harsh Goenka on Godrej Group family's pact to split the conglomerateAdi 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.Read more👇https://lnkd.in/dMqquVVZ#digitalmarketing #marketing #socialmedia #business #entrepreneur #branding #socialmediamarketing #contentmarketing #growthhacking #marketingstrategy #growthmindset #leadgeneration #sales #engagement #communitybuilding #influencermarketing #results #impact

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The lack of proactive succession planning plagues Indian business families despite the awareness of its necessity, resulting in less than a fifth of family-owned businesses having a succession plan. The challenge intensifies for families handing over control to the third generation, facing difficulties balancing tradition and modernity amidst evolving market dynamics. However, each business family’s succession plan is unique, requiring tailored approaches to address family-specific challenges and individual aspirations.The successful division of the Godrej Group sets a commendable example, emphasising the importance of transparency, meticulous planning, and clear delineation of responsibilities in succession planning. My oped in The Secretariat argues that such a #succession #planning is an Outlier ! I address these in my #oped …1. How can Indian business families overcome the lack of proactive succession planning?2. What challenges do families face when transferring control to the third #generation?3. What lessons can be learned from the successful division of the #Godrej Group?4. How can families balance #tradition and #modernity in succession planning?5. What role does #transparency play in successful succession planning?6. Why do some families prioritise nepotism over meritocracy in succession planning?7. How can the involvement of #institutional #investors influence succession planning in Indian corporates?8. What factors contribute to the success or failure of succession planning in family-owned businesses?#SuccessionPlanning #IndianBusiness #FamilyOwned #GodrejGroup #CorporateGovernance #FamilyLegacy #BusinessSuccess #FamilialDisputes #MarketDynamics #InstitutionalInvestors #godrej #Opinion RAJESH MAHAPATRA

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In this insightful episode of "Reputation Matters," host Anupam Gupta discusses with Mitu Samar Jha, founder of Eminence Strategy Consulting the intricate dynamics of corporate battles within family-owned businesses. They delve into how these feuds impact corporate reputation, particularly focusing on the recent amicable split within the Godrej group and contrasting it with more contentious family disputes like those of Bajaj and Birla. Tune in to learn valuable lessons on managing corporate reputation, controlling narratives, and the broader implications for stakeholders.https://lnkd.in/gmFHrpqv

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