Introduction
Godrej Industries has sold the office space spread of Godrej & Boyce Manufacturing Company Limited. Recently, the Godrej family announced the restructuring of ownership stakes in group companies. The Godrej family announced on April 30 that it is splitting the 127-year-old group into two entities – Godrej Enterprises and Godrej Industries. This move aims to simplify the ownership structure. Allow each entity to focus on different aspects of the business.
Table of Contents
- Office Space on Two Floors in Godrej One (North Tower)
- 9th Floor of the Building Has Already Been Leased
- Godrej & Boyce and Its Subsidiaries Have the Presence
- Development of Land in Vikhroli, Mumbai Owned by Godrej & Boyce
- Godrej Family Has Announced an Ownership Restructuring
Godrej & Boyce Manufacturing Company Ltd sold 48,729.92 sq ft of office space in Mumbai’s Vikhroli (East) to Godrej Industries Ltd for ₹157 crore, registration documents accessed by PropStock showed. The office space is located in Godrej One, a commercial building developed by Godrej Properties. Godrej Enterprises will house the group’s non-real estate businesses.
Office Space on Two Floors in Godrej One (North Tower)
The office space in the north tower of the commercial building known as Godrej One is spread over two floors, a two-level basement and ground plus 11 upper floors built on a large lot, documents showed. The transaction highlights the trend of companies investing in real estate within their group for long-term stability and growth. This document was accessed via PropStock. The two office spaces are located in the posh Godrej One Tower.
The document was registered on April 30, 2024. Godrej Industries will also get access to 75 car parking, the documents show. The registration process was completed smoothly without any delays. This additional amenity will provide convenience for employees and visitors of Godrej Industries. A stamp duty of ₹9.42 crores was paid for the transaction, the documents show.
9th Floor of the Building Has Already Been Leased
The 9th floor of the building is leased to flexible space provider Simpliwork Offices for five years until March 31, 2026. The lease is also transferable to the new landlord. The documents showed that even the security deposit paid by the flexible space provider was directly transferred to the transferee after the execution of the transfer deed.
This is interesting in the context of the recent split that happened between two branches of the founding family. Under the family settlement announced on April 30. 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.
This division has caused speculation about the future direction of the conglomerate. As each branch may have different priorities and strategies. The split also raises questions about potential competition and collaboration between the two sides within the business.
It remains to be seen how this family settlement will impact the overall operations and growth of the Godrej Group moving forward. The split could potentially lead to a more diversified approach within the conglomerate. With each branch focusing on different sectors or regions.
Godrej & Boyce and Its Subsidiaries Have the Presence
The Godrej Enterprises Group comprises Godrej & Boyce and its subsidiaries. It has a presence in aerospace and aviation defence. Furniture and IT software across multiple industries, controlled by Jamshed Godrej as Chairperson and Managing Director. His sister Smitha’s daughter Nairika Holkar (42) will be the executive director. Their families control this arm. Which also owns a land bank including 3,400 acres of prime land in Mumbai.
Godrej Industries, 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, the company had said in a statement earlier.
Development of Land in Vikhroli, Mumbai Owned by Godrej & Boyce
On May 1, 2024, owner-developer Godrej & Boyce and development manager Godrej Properties announced that the two companies will be collaborating on a new residential project in Mumbai. The project is expecting to feature luxurious amenities and innovative design concepts to cater to the modern urban lifestyle. It will continue its ongoing Memorandums of Understanding (MoUs) for developing land in Vikhroli, Mumbai, owned by Godrej & Boyce.
Boyce, when the owner intends to develop the said land. The MoUs outline the terms and conditions for the development of residential and commercial projects on the land, ensuring a mutually beneficial partnership between Godrej & Boyce and the developer. This collaboration aims to enhance the real estate market in Vikhroli, Mumbai while maintaining sustainable practices.
Godrej Family Has Announced an Ownership Restructuring
Recently, the Godrej family announced an ownership restructuring of shares in Godrej companies. The group is divided into Godrej Enterprises and Godrej Industries. Godrej Enterprises will now hold the family’s stake in Godrej Consumer Products and Godrej Agrovet. While Godrej Industries will hold the stake in Godrej Properties and Godrej & Boyce.
This move is seen as a strategic decision to streamline the family’s holdings and optimize their business interests. As part of the split, Adi Godrej and his brother Nadir will stay at the helm of the listed entities which will come under Godrej Industries. On the other hand, cousin Jamshyd Godrej gets control of unlisted companies and a land bank which will come under Godrej Enterprises.
Conclusion
The Godrej & Boyce Sells Office Space in Vikhroli to Godrej Industries for Rs 1,479 crore. This strategic move will allow Godrej Industries to expand its presence in the prime commercial real estate market in Mumbai.
This acquisition aligns with Godrej Industries’ long-term growth strategy. Solidifies its position as a key player in the real estate sector. It also demonstrates the company’s commitment to investing in high-quality assets for sustainable development. For more information, visit openplot.
| Also read Godrej Properties Q4 FY24 Net Profit Growth Godrej Properties reported a 14 per cent growth in net profit in the fourth quarter of FY24. The company’s income from operations declined by 13.4 per cent. This growth can be attributed to cost-saving measures or successful real estate projects that contributed positively to the company’s bottom line. Godrej Properties to Build a Township in Bengaluru Godrej Properties has exciting plans for Bangalore. Real estate major Godrej Properties Ltd. announced on March 4 that it has signed agreements to develop a large township project in North Bengaluru on a large sharing model. |
Frequently Asked Questions
Q. Who is the owner of Godrej and Boyce?
A. “Mr. Jamshyd” Godrej is the company’s chairman and managing director. Headquartered in Pirojshanagar at Vikhroli, Mumbai, India, Godrej and Boyce also offer products in Europe, the U.S., the Middle East, Africa and Southeast Asia.
Q. Who is the CEO of Godrej Group?
A. “Mr. Sudhir Sitapati” is the Managing Director and CEO of Godrej Consumer Products Limited.
Q. Who is the current chairman of Godrej Industries?
A. Nadir Godrej is the Chairman and Managing Director of Godrej Industries Limited. He holds a B. S. degree in Chemical Engineering in 1973 from the Massachusetts Institute of Technology and a M.S. in Chemical Engineering in 1974 from Stanford University.