Impacted by an increase in soap prices and unseasonal rainfall slowing down sales of the home insecticides (HI) segment, Godrej Consumer Products expects a “flattish” underlying volume growth and a mid-single-digit sales growth in the domestic market in the December quarter.

Both segments jointly contribute to two-thirds of GCPL’s standalone revenue — mainly income from operations from the domestic market.

However, the rest of the portfolio is demonstrating good performance and is expected to deliver double-digit underlying volume growth, Godrej Consumer Products Ltd (GCPL) said in an update on business conditions and quarterly performance to the exchanges.

“The demand conditions in India have been subdued for the past few months which is evident in the FMCG market growth,” it said.

A surge in palm oil and derivatives prices to the extent of a year-on-year increase of 20-30 per cent has impacted the soaps category, representing one-third of GCPL’s standalone business revenue.

“To partly offset the cost increases we have taken price increases, reduced grammage of key packs and reduced various trade schemes,” said the Godrej Industries Group FMCG arm.

Such pricing actions typically have minimal impact on category consumption but do result in reduced inventory across wholesale and household pantries, it said.

It anticipates normalisation happening on the volume growth side following price stabilisation after the next few months only as per the historical patterns.

Moreover, delayed winters in the north and cyclones in south India have slowed down sales in the HI segment, which also contributes one-third to GCPL’s standalone business.

“This has impacted HI category growths in the current quarter,” it said.

Under the HI category, GCPL operates in the home hygiene segment with mosquito repellent brands such as Good Knight and HIT.

“However, given the significant contribution of soaps and HI to the overall business mix, the standalone business is expected to report around flattish underlying volume growth and around mid-single digit sales growth in this quarter,” it said.

According to GCPL, these are “exceptional situations in standalone business” that the management believes are transitionary and not structural.

“Hence the management remains focused on navigating these near-term challenges while maintaining strategic investments for long-term growth as these negative trends are likely to persist for a few months,” it added.

GCPL’s international businesses continue to do well on their relevant strategic objectives, it added.

Indonesia, which is the second largest market for GCPL after India, it expects to deliver a “continued superior performance with mid-single digit volume growth and high single-digit sales growth”.

While its GAUM (Godrej Africa, USA, and Middle East) organic business is expected to see volume decline due to a reduction in trade stocks and portfolio simplification, as per its earlier guidance.

“The effects of these actions would be largely completed in Q3 FY25. However, we continue to do well on our profitability journey, and this is likely to be the fourth consecutive quarter of healthy EBITDA margins for GAUM,” it said.

Through these updates, GCPL provided an overall summary of the demand conditions & trends and operating performance during the ongoing quarter.

“This will be followed by a detailed performance update, post the approval of the Q3 FY25 financial results by the Board of Directors,” it added.

In FY24, GCPL had a consolidated revenue of ₹14,096 crore in which 59% was from the Indian market and the rest 41%was generated from international operations.

New Delhi:

Adani Group chairman Gautam Adani emerged as the biggest dollar gainer on Thursday among the list of Forbes India’s 100 richest tycoons, with the family’s net worth rising to $116 billion.

Along with his brother Vinod Adani, Gautam Adani added $48 billion to climb up to the second position on the list. The Forbes report said Mr Adani posted a strong recovery from “last year’s short-selling attack”. This amounts to a 71 percent rise in wealth.

Reliance Industries chairman and managing director Mukesh Ambani’s wealth increased by $27.5 billion to bring his total net worth to $119.5 billion. Mr Ambani’s wealth rose by 30 percent, even as he emerged as the second biggest dollar gainer this year. Reliance had announced a bonus issue of shares as a Diwali gift to Reliance investors.

In a record-breaking year, the collective wealth of India’s 100 richest tycoons surpassed the trillion dollar milestone for the first time as more than 80 per cent of the country’s richest tycoons are now wealthier than they were a year ago and twice as rich as they were in 2019, the Forbes report showed.

More than 80% of the richest Indians are wealthier with 58 of them adding $1 billion or more to their respective net worths. Half a dozen fortunes swelled by more than $10 billion each, including the top five, who as a group gained nearly $120 billion. The top 12 list members account for roughly half the group’s combined wealth.

India’s richest woman Savitri Jindal, matriarch of steel-to-power conglomerate OP Jindal Group, whose son Sajjan Jindal recently made an ambitious foray into electric vehicles with MG Motor, moved up to No. 3 for the first time. She’s one of nine women on the list, up from eight a year ago.

The new woman in the ranks is Mahima Datla, who controls privately-held vaccine producer Biological E. She’s one of four newcomers to the list, a group that includes B Partha Saradhi Reddy, founder of Hetero Labs, a maker of generic medicines and pharma ingredients.

The two other new faces are Harish Ahuja, whose apparel maker Shahi Exports supplies to labels such as H&M and Calvin Klein; India’s booming IPO market made Surender Saluja, founder and chairman of Premier Energies, which makes solar panels and modules, a multi-billionaire after his company got listed in September.

Dilip Shanghvi, founder of Sun Pharmaceutical Industries, jumped three spots to No. 5 with $32.4 billion on rising demand for its skin treatments for everything from acne to psoriasis; siblings Sudhir & Samir Mehta, whose Torrent Group flagship Torrent Pharmaceuticals is eyeing acquisitions, more than doubled their wealth to $16.3 billion.

Four prominent property fortunes on the list were up more than $16 billion combined. Another notable real estate gainer was Irfan Razack and his siblings, whose Bangalore-based developer Prestige Estates Projects rode the boom in India’s tech capital and is now making a mark in Mumbai, the country’s financial hub. The family is one of five members who had previously dropped out of the ranks but rejoined after a hiatus. The other four made their fortunes in everything from operating airports to making industrial explosives.

The storied Godrej family finally concluded a division of their holdings between two factions in April and as a result they appear separately for the first time: brothers Adi & Nadir Godrej, who control the listed companies under the Godrej Industries Group, and their cousins Jamshyd Godrej and Smita Crishna Godrej, who control their privately held flagship Godrej & Boyce under the Godrej Enterprises Group.

The youngest list member is Nikhil Kamath, 38 who cofounded and runs discount brokerage Zerodha with his brother Nithin, 45.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

New Delhi:

The 127-year-old business empire of the Godrej Group is all set for a shareholding realignment. In the redistribution announced on Tuesday, the billion-dollar company will now be split between Adi and Nadir Godrej and their cousins Jamshyd Godrej and Smita Crishna Godrej.

While Adi and Nadir will lead Godrej Industries, Jamshyd and Smita will inherit Godrej & Boyce, along with its affiliates and substantial real estate assets, including prime property in Mumbai. 

Who is Jamshyd Godrej?

1. Jamshyd Godrej, 75, is presently the Chairman and Managing Director of Godrej & Boyce, a flagship company within the Godrej Group, known for products ranging from consumer goods to engineering solutions. 

2. He holds a degree in Mechanical Engineering from the Illinois Institute of Technology, US. 

3. He has also served as the President of the World Wide Fund for Nature – India and holds chairmanship and directorship roles in organisations like the Shakti Sustainable Energy Foundation, World Resources Institute, and Asia Society. 

4. He loves yachting and has explored the waters of the west coast of India, the Baltic & North Sea, the Atlantic Ocean, and the Mediterranean Sea. 

5. He was awarded the Padma Bhushan, the third-highest civilian award in India, in 2003. 

Who is Smita Crishna Godrej?

1. Smita Crishna Godrej, 74, is India’s third-richest woman, according to Forbes, with a substantial net worth of $3.8 billion. 

2. She attended J B Petit School and pursued a Bachelor of Arts degree in History and Political Science from St. Xavier’s College in Mumbai. She also earned a Diploma in Communication Arts (Television Production) from Loyola College, (now Concordia University) in Montreal.  

3. She is a member of the Godrej clan, holding a substantial 20% stake in the family assets. Her husband, Vijay Crishna, a renowned theatre actor, and her daughter, Nyrika Holkar, are also involved in the family’s business activities. 

4. Smita Crishna Godrej is deeply engaged with the Udayachal Schools in Vikhroli, established in 1955 for the children of Godrej employees, including both workers and managers. These schools now educate over 2000 children, both girls and boys. 

5. She also serves as a Trustee for the Soonabai Pirojsha Godrej Foundation, which conserves Mumbai’s mangrove belt. She is the Director at the Naoroji Godrej Centre for Plant Research. She also supports cultural and educational initiatives, including the Mehli Mehta Music Foundation and the Children’s Museum. She was honoured with the Extraordinary Leadership Award by Education World at their Education World Grand Jury Awards in 2016.

New Delhi:

The founding family of 127-year-old Godrej Group, which spans from soaps and home appliances to real estate, has reached an agreement to split the conglomerate, with Adi Godrej and his brother Nadir keeping Godrej Industries that has five listed firms, while cousins Jamshyd and Smita getting unlisted Godrej & Boyce and its affiliates as well as a land bank, including prime property in Mumbai.

The group has been split between two branches of the founding family, with Adi Godrej (82) and his brother Nadir (73) on one side and their cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) on the other, according to a statement issued by the group.

Godrej Enterprises Group — comprising Godrej & Boyce and its affiliates that have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software — will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita’s daughter Nyrika Holkar, 42, will be the executive director.

Their families will control this arm that also will hold the land bank, including 3,400 acres of prime land in Mumbai.

Godrej Industries Group — which includes the listed companies – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences — will have Nadir Godrej as chairperson and will be controlled by Adi, Nadir and their immediate families.

Pirojsha Godrej, 42, son of Adi, will be the executive vice chairperson of GIG and will succeed Nadir as the chairperson in August 2026, the statement said.

In the statement, the Godrej family termed the split as “an ownership realignment” of the shareholdings in the Godrej companies.

“The realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgement of the differing visions of the Godrej family members,” it said.

“This will help maximize strategic direction, focus, and agility, and will accelerate the process of creating long-term value for shareholders and all other stakeholders.” Both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage.

Lawyer-turned-serial entrepreneur Ardeshir Godrej and his brother in 1897 succeeded at locksmithing after failed ventures into hand-fashioned medical devices.

Ardeshir did not have any children, and so the group was inherited by his younger brother Pirojsha. Pirojsha had four children – Sohrab, Dosa, Burjor and Naval.

Over the years, the helm of the group came to the children of Burjor (Adi and Nadir) and Naval (Jamshyd and Smita) as Sohrab had no children while Dosa had one child Rishad, who had no children.

To enable the split, the two sides quit the boards of companies in rival camps. So, Adi and Nadir Godrej resigned from the Godrej & Boyce Board, while Jamshyd Godrej left his seat on the boards of GCPL and Godrej Properties.

Unconfirmed reports say Adi and Nadir Godrej will divest their stakes in Godrej & Boyce to the other branch. Jamshyd Godrej and his side of the family will transfer interests in Godrej Consumer Products (GCPL) and Godrej Properties to their cousins through a family arrangement.

Real estate worth crores of rupees, mostly in prime land in Mumbai suburbs, will remain under Godrej & Boyce (G&B), and a separate agreement will be worked out to govern the ownership rights.

It owns 3,400 acres of land in Mumbai, including a 3,000-acre parcel in Vikhroli, Mumbai. The Vikhroli land by some estimates has a development potential of over Rs 1 lakh crore. It can develop 1,000 acres, while about 1,750 acres are covered with mangroves and is the destination of rare plants and birds. About 300 acres of land have already been encroached upon.

The Vikhroli property was bought by Pirojsha at a public auction from the Bombay High Court receiver in 1941-42. It was previously owned by a Parsi merchant Framjee Banaji, who bought it from the East India Company in the 1830s.

Adi is currently chairman of Godrej Group. His brother Nadir is chairman of Godrej Industries and Godrej Agrovet. Their cousin Jamshyd is chairman of the unlisted Godrej & Boyce Manufacturing company. His sister Smita Crishna and Rishad Godrej also hold a stake in Godrej & Boyce, which owns most of the property in Vikhroli.

A couple of years back, Jamshyd roped in investment banker Nimesh Kampani and lawyer Zia Mody to advise him on separating the land ownership. Kotak Mahindra Bank’s Uday Kotak and Cyril Shroff of legal firm Cyril Amarchand Mangaldas were assisting Adi.

According to the statement, the realignment will be implemented after the relevant regulatory approvals have been obtained.

“Godrej Enterprises Group (GEG) comprises Godrej & Boyce (G&B) and its affiliates, which have a presence across multiple industries spanning aerospace, aviation, defence, engines and motors, energy, security, building materials, construction, green building consulting, EPC services, intralogistics, healthcare equipment, durables, furniture, interior design, architectural fittings, IT, software as well as infrastructure solutions.

“This group will now be controlled by Jamshyd Godrej, chairperson and managing director, Nyrika Holkar, Executive Director, and their immediate families,” it said.

Godrej Industries Group (GIG), which includes the listed companies, Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec Lifesciences will have Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families.

“Pirojsha Godrej will be the Executive Vice Chairperson of GIG and will succeed Nadir Godrej as the Chairperson in August 2026,” it said.

Commenting on the future outlook, Jamshyd Godrej said: “Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high-tech engineering and design-led innovation across our strong portfolio of strategic, consumer and emerging businesses”.

Nadir Godrej said, “Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause – the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better – continue to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility”. PTI ANZ ANB ANB ANB

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)