United We Stand, Divided We Grow

The Godrej Group’s decision to split, or its ‘realignment’ as the group leaders call it, should not come as too much of a surprise, especially for a conglomerate with a legacy spanning 127 years. The Birla and Bajaj families split after three generations, the Ambanis in the second generation and the likes of the Munjals and Jindals even earlier. In each case, there is enough evidence of the potential for growth post-division.

The Godrej family’s decision to divide the group, with Adi and Nadir Godrej retaining control of Godrej Industries and cousins Jamshyd and Smita taking charge of Godrej & Boyce, reflects a thoughtful approach to ownership realignment. The two branches of the founding family say that it is aimed at fostering greater focus, agility and alignment with evolving visions.

This realignment not only respects the differing visions within the family but also positions each branch to pursue its strategic objectives more effectively.

If one has to observe closer, one of the key benefits of such divisions in family businesses is the potential for enhanced growth and innovation. By allowing different branches of the family to independently manage and steer specific segments of the business, the split enables a sharper focus on core competencies and markets. In the case of the Godrej family, this could translate into accelerated growth opportunities for both branches within their respective sectors, be it consumer products, real estate or other industries.

It should also be said that the division of responsibilities within the Godrej family paves the way for smoother succession planning and leadership transitions. With designated individuals assuming key leadership positions within each branch such as Pirojsha Godrej slated to succeed Nadir Godrej as chairperson of the Godrej Industries Group or Nyrika Holkar taking charge as the Executive Director of the Godrej Enterprises Group, there is a clear pathway for continuity and governance within the family enterprise.

Beyond operational considerations, the split also underscores the importance of maintaining familial harmony and cohesion, which are essential for the sustained success of family businesses. By arriving at the realignment respectfully and mindfully, the Godrej family sets a precedent for constructive engagement and collaboration, even amidst significant structural changes.

Also, the decision to retain the Godrej brand across both branches reaffirms a commitment to shared heritage and values, providing a sense of continuity and identity amid transformation. This continuity not only strengthens the brand’s equity but also fosters trust among stakeholders. Leveraging division can be a catalyst for innovation, succession planning and harmonious governance, allowing family businesses to unlock new avenues for growth and ensure their legacy endures for generations to come.

Noor Fathima Warsia

BW Reporters A veteran journalist in business and corporate journalism, Noor Fathima Warsia is the Group Editorial Director of India’s oldest business publication, BW Businessworld. In her role, Noor leads the editorial initiatives across BW Businessworld’s flagship product and communities focused on education, startups, healthcare and wellbeing, media & marketing, gaming, HR and legal among others. In a career spanning more than two decades, Noor has led the publishing of the flagship BW Businessworld magazine and its community magazines, guided the online editorial team and led communities such as BW Marketing World apart from working on editorial-led IPs such as BW Most Influential Women, BW India’s Most Sustainable Companies, BW Top 50 Marketers and more.