MUMBAI: Consumer goods-to-real estate conglomerate Godrej could see a restructuring as differences have surfaced between family members over the way forward for the 122-year-old, $5-billion enterprise. Group chairman Adi Godrej and his brother Nadir Godrej are on one side while cousins Jamshyd Godrej and Smitha Godrej Crishna are on the other.
A TV report said the clan is also split over the development of a 1,000-acre land parcel they own in Mumbai.
Investment banker Nimesh Kampani and lawyer Zia Mody are advising Jamshyd Godrej while Kotak Mahindra Bank’s chief Uday Kotak and Cyril Shroff of legal firm Cyril Amarchand Mangaldas are assisting Adi Godrej. A Godrej group spokesperson declined to comment. However, people familiar with the matter confirmed the appointment of top bankers and lawyers as mediators in the family dispute.
The conflict within the Godrej family over business strategy may be as much a clash of personalities as a difference in world views, especially among the younger lot.
A source close to the Godrejs said there have been no visible undercurrents due to the differences. “They attend board meetings and are very cordial towards each other,” said the source.
Another person who knows the family, told TOI, “It was just a matter of time, the younger generation would want to move in different directions. They are fast movers and there is bound to be friction if the others can’t keep up,’’ said this person, not wishing to be identified.
Group chairman Adi Godrej and his brother Nadir Godrej form one faction, while the other is led by cousins Jamshyd Godrej and Smitha Godrej Crishna. “Adi is flamboyant with an international social scene. He is very clever and a sharp businessman with deep knowledge of the commodity market. Jamshyd, on the other hand, is much lower on the radar and does not enjoy society life. He prefers sailing the seas to anything else, and is simple and very hard working,’’ said the source.
“Adi’s children are all hands on in the business, very pushy and sharp. Under son Pirojsha, the Godrej Properties stock has been booming,’’ said a leading property market expert. Jamshyd, business sources said, is probably grooming his niece, Nyrika. “Nyrika is a lawyer and works with Jamshyd,’’ said insiders. Jamshyd’s son Navroze lives in Goa, is into music and designs clothes. “He has a Zen like existence and is not money minded at all,’’ said a family friend.
The Godrej group was founded by Ardeshir Godrej and his younger brother Pirojsha Godrej in 1897. Its origins started with the sale of locks after Ardeshir read news reports about rising burglaries in Mumbai. Over the decades, the group expanded into several areas including soaps (the enterprise is said to have produced the first soap in the world using vegetable oil), appliances and real estate.