New Delhi: Godrej group promoters Thursday said they have sought advice from external partners to help them plan future strategy, amid reports of a rift between family patriarchs over long-term planning and utilisation of a prime land parcel in Mumbai.
Media reports had highlighted serious differences between one side led by Godrej Group chairman Adi Godrej and his brother Nadir Godrej and the other led by his cousins Jamshyd Godrej and Smitha Godrej Crishna.
"We have been working on a long-term strategy plan for the group for several years. As part of this exercise, we have sought advice from external partners to help us think through options," Adi Godrej and Jamshyd Godrej said in a terse statement.
"The family regrets the sensationalist media coverage of these normal and private family discussions," they added without commenting on the specific issues highlighted in the reports.
As per reports, the reason for the friction between the two sides was not only the future road map of the 100-year-old $4.1 billion group that has presence ranging from soaps to aerospace but also over land holdings of a 1,000-acre plot in Mumbai's Vikhroli suburb.
The reports had said Godrej Group Chairman Adi Godrej and Nadir Godrej have roped in noted banker Uday Kotak and legal veteran Cyril Shroff while Jamshyd Godrej, who heads unlisted Godrej & Boyce, has industry veteran Nimesh Kampani and lawyer Zia Mody on his side.
Godrej & Boyce, which is the business of manufacturing locks to durables as refrigerators, washing machines, air conditioners, home security systems and safes, furniture interior solutions and industrial products owns more than 3,400-acre land parcel in Mumbai.
Out of the total, around 3,000 acres are in Vikhroli suburb, while the rest is in Bhandup and Nahur.
The three listed companies of the group -- Godrej Consumer Products Ltd (GCPL), Godrej Properties and Godrej Agrovet -- are controlled by Adi and Nadir Godrej.
According to the reports, Godrej Properties, the group's real estate arm, has been developing the land parcels through a development management agreement.
However, Jamshyd Godrej wanted the 1,000 acre land at Vikhroli suburb to be spared such practice, while Adi and Nadir Godrej want it to be fully developed under Godrej Properties, which aims to be a major developer in Mumbai.
Updated Date: Jun 27, 2019 17:48:39 IST