Adi Godrej is new Godrej group chairman

Adi Godrej is new Godrej group chairman
ENS ECONOMIC BUREAU

MUMBAI, AUGUST 3: Following the demise of Godrej group doyen Sohrab P Godrej, the Rs 3,500 crore Godrej group has restructured its top level management by appointing Adi B Godrej as its new chairman.

In a related move, Jamshyd N Godrej has been appointed as the chairman and managing director of Godrej and Boyce Manufacturing Co Ltd while Adi's brother Nadir B Godrej would take over as chairman of Godrej Agrovet Ltd. Nadir is also the managing director of Godrej Soaps while Adi was recently elevated to the post of chairman of Godrej Soaps Ltd.

Despite being one of the oldest business groups in India, the Godrej Group failed to cash in on new business opportunities due to the ongoing economic liberalisation. Moreover, the group had to undergo some disastrous experiences with its multinational joint venture partners -- many of whom including P&G, decided to go solo after the initial partnership.

In the recent years, in order to bring more focus into the group and reduce its debts, the group has been on a major restructuring drive. Of the many restructuring decisions, Godrej & Boyce announced last year to divest its 50 per cent equity shareholding in Godrej Pacific Technology to Tech Pacific, part of Dutch company Hagemeyer NV.

The company also announced its decision to buy out GE's 40 per cent stake in joint venture Godrej GE. It also picked up Godrej Foods' 29 per cent stake in joint venture Godrej Pillsbury for a consideration of Rs 31.13 crore, and the acquisition of Godrej Soaps' 22.5 per cent stake in Godrej Sara Lee for Rs 99.17 crore.

Godrej Sara Lee, as was announced this week, is itself undergoing changes with Godrej Soaps' deciding to sell off part of its holding in the joint venture to the public. At the same time, Godrej Soaps announced that it was demerging the consumer products division to a new company in order to create shareholders' value by giving a renewed focus to the FMCG business of the company.

Besides, Godrej Soaps is being split into two companies: one to focus on consumer products, while the other which will include the chemicals business and various investments in other group companies.

The Godrej Group comprises several companies led by flagship Godrej & Boyce Mfg. Co and Godrej Soaps. Besides, the group has presence in various other sectors through Godrej GE Appliances, Godrej Foods, Godrej Agrovet, Godrej Telecom, Godrej Sara Lee, Godrej Properties & Investments and Lawkim Ltd.