The $20 billion Godrej family separation: What's the agreement on Brand Name usage? 

The agreement regarding the split of the 127-year old Godrej conglomerate submitted to the exchanges addresses issues of Royalty, Brand Usage and Land Bank development.

By  Storyboard18May 2, 2024 9:33 AM
The $20 billion Godrej family separation: What's the agreement on Brand Name usage? 
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. (From left to right: Adi Godrej (Image source: Forbes India); Jamshyd Godrej and Nadir Godrej)

The Godrej family that controls the homegrown locks-to-soap conglomerate reached an agreement to split the company into two branches. The family has 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 addresses issues of Royalty, Brand Usage and Land Bank development.

Sources told CNBC-TV18 that it has been agreed that Godrej Enterprises Group (GEG) and Godrej Industries Group (GIG) can use the Godrej brand name since it’s their family name, but logo differentiation will have to be actioned. Sources indicate Jamshyd Godrej’s GEG will change the logo and the time period for this transition is likely to be one year.

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.

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 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!" 

First Published on May 2, 2024 9:33 AM

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