Mumbai: Godrej & Boyce Manufacturing Company (G & B) will continue to maintain around 3,401 hectares of land even as divisions in the family business expected immediately.
Toi has learned that senior directors throughout the group company have been sworn to be married not to talk about negotiations.
In addition, there was an embargo on them not to sell or trade in Godrej shares until then.
The insider, when contacted by this newspaper, said it made sense for the G & B to maintain the entire land.
“While the probability of dividing the soil through a separate vehicle is discussed, it is difficult to execute because it will attract the payment of large stamp duty based on the value of Ready Reckoner from the ground,” said the source, “5% of stamp duty will kick even if the land must be moved from a group company to another .
“The decision to land vest in the G & B will, in turn, increases the company’s assessment, the source said.
It can make family business separating expensive propositions for the Jamshyd Godrej side.
Wise replacement, not registered G & B (RS 11,400 Crore in 2019-20) is half of the size of Godrej Industries & Associate Company (around Rs 21,000 Crore).
It is not clear whether Godrej Properties, which is part of Godrej Industries and associated companies, will continue to benefit by developing the properties of the land owned by G & B after family separation.
However, even before, when the property development was carried out by Godrej property in the land of G & B, it was done through joint arrangements between each company.
More than and on 3,401-acre land owned by G & B, there is a separate land parcel where Godrej Group is in a dispute with the state government since 1973 for whom it controls the land.
The state claims its land and has filed a lawsuit against the G & B that year.
The dispute was waiting before the Bombay High Court.
However, it was a truly separate problem, said source, and outside the scope of the current family division.
The Slum Rehabilitation Authority (SRA), during the survey in 2015, estimated that at least 300 hectares near the Vikhroli station were interrupted.
The family obtained its land in the eastern suburb of the recipient of the Bombay High Court in the 1940s.
This land was originally given by the East Indian company for Parsi Merchant Framji Banaji in the 1830s until it was sold in 1941-42.
After acquiring this land, Godrejs began buying a plot side by side by negotiating with 200 plot owners.
Responding to TI’s request about this problem, the Godrej family said in a joint statement: “The Godrej family has worked on a long-term strategic plan for the group for the past few years to ensure the value of its shares.
As part of this exercise, we also seek advice from external partners.
This discussion Between the family remained sustainable.
“Source said the family division in the 124-year-old Godrej group, $ 4 billion has developed significantly and can be announced in several months.
They told TOI restructuring being carried out in a peaceful way without emotion.
Five branch families under Adi Godrej, Nadir Godrej (brother of Adi), Jamshyd Godrej, Sister of Jamshyd (Sister Jamshyd) and Rishad Godrej (Adi cousin, Nadir, Jamshyd) Hold 15.33% respectively at the G & B, respectively in G & B.
While the Pirojsha Godrej foundation holds around 23%.
Trust invests in the environment, health and education.
Dividends of various group companies are used to meet these philanthropical activities.
G & B, in turn, has ownership in various group companies.
Thus, G & B and Godrej Industries and Associate companies have operated independently for decades, although family members sit on the Group Council and directly or indirectly hold bets in group entities.
GODREJS fourth generation members now occupy leadership positions in the group.
Adi Godrej, who recently resigned from a registered company board, continued to be at the Council of G & B.
His younger brother Nadir Godrej had taken over as chairman of Godrej Industries.
On Monday, Vijay Crishna, executive director at the G & B, resigned from the Godrej board from the non-executive position, non-independent director.
Crishna, 76, is Jamshyd Godrej’s brother-in-law.
Holkar’s daughter was seen as the successor to Jamshyd Godrej at G & B.
G & B held personally was the equipment, construction, precision engineering, retail furniture and aerospace, among other sectors, while Godrej Industries is a parent company that has deep interests Consumer, agriculture, real estate, chemicals and financial services, in addition to incubating new businesses.