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Commission Approves Proposed Combination Involving Realignment within the Godrej Group

Date: June 18, 2024

Press Release No. 26 of 2024-25

The Commission has approved a significant proposed combination involving the realignment of interests, legal ownership, and management within the renowned Godrej group. This realignment is a part of an inter-se arrangement among the family branches of Adi Godrej (ABG Family), Nadir Godrej (NBG Family), Jamshyd Godrej (JNG Family), and Smita Crishna (SVC Family). The realignment will proceed under the Family Settlement Agreement (FSA) dated April 30, 2024.

Details of the Proposed Combination:

The primary focus of this proposed combination is to restructure and realign the interests, legal ownership, and management of various entities within the Godrej group. The target enterprises involved in this realignment are divided into two main groups: the GILAC Group Entities and the G&B Group Entities.

GILAC Group Entities:

1. Godrej Industries Limited
2. Godrej Consumer Products Limited
3. Godrej Properties Limited
4. Godrej Agrovet Limited
5. Godrej Seeds & Genetics Limited
6. Innovia Multiventures Private Limited
7. Astec Lifesciences Limited
8. Anamudi Real Estates LLP

G&B Group Entities:

1. Godrej & Boyce Manufacturing Company Limited
2. Godrej Holdings Private Limited
3. Godrej Infotech Limited
4. RKN Enterprises

Background and Implications:

The proposed combination is aimed at streamlining the management and ownership structure within the Godrej group, one of India's most diversified and respected conglomerates. The Family Settlement Agreement (FSA) executed by the family branches marks a significant step towards achieving a more efficient and cohesive organizational structure.

Significance of the Realignment:

Enhanced Management Efficiency: The realignment is expected to bring clarity and efficiency to the management of various entities within the Godrej group. By clearly defining the ownership and management roles of each family branch, the group aims to eliminate potential conflicts and streamline decision-making processes.

Legal and Ownership Clarity: The restructuring will provide clear legal ownership of the entities involved, ensuring that each family branch has a well-defined stake in the respective companies. This will help in better governance and transparency within the group.

Strategic Growth: With the realignment, the Godrej group can focus more effectively on its strategic growth initiatives. The streamlined structure will enable the group to allocate resources more efficiently and pursue growth opportunities with greater agility.

Family Unity and Cooperation: The Family Settlement Agreement is a testament to the unity and cooperation among the different branches of the Godrej family. By agreeing to this realignment, the family members have demonstrated their commitment to the long-term success and sustainability of the group.

Next Steps:

The Commission's approval is a critical milestone in the implementation of the proposed combination. A detailed order outlining the specific terms and conditions of the realignment will follow, providing further clarity on the regulatory aspects of the transaction.

Conclusion:

The Commission's approval of the proposed realignment within the Godrej group signifies a pivotal moment for one of India's most iconic conglomerates. The restructuring is poised to enhance management efficiency, provide legal clarity, and support the group's strategic growth initiatives. Stakeholders and industry observers can anticipate a more streamlined and dynamic Godrej group in the coming years.