Mumbai: Controlled godrej End Boyce Manufacturing Company (G&B) will continue to own about 3,401 acres, even as a split in the family business is expected to end soon.
Godrej is synonymous with family holdings and is the largest maintainer of privately managed mangrove belts in the city.
Of the 3,401 acres located in the eastern suburbs of Mumbai, about 1,750 acres are part of mangroves. Sunabai Pirojsha Godrej Foundation,
A few years back, when the talk of separation started between the two families – Adi Godrej, Nadir Godrej and family (Godrej Industries and associates) and Jamshed Godrej and extended family – real estate was a contentious issue that brought up the question of how the assets would be divided.
Sources close to the family told TOI that it has been decided that real estate owners G&B will retain this as well.
TOI has learned that senior directors of group companies have been administered an oath of secrecy to not talk about the talks. Further, they are prohibited from selling or trading Godrej shares till then. An insider, when contacted by this newspaper, said that it makes sense for G&B to retain the entire land.
“While the possibility of allotment of land through a separate vehicle was discussed, it was difficult to execute as it would attract heavy stamp duty payment based on the ready reckoner value of the land,” the source said. “Stamp duty of 5 per cent will be applicable even if the land is transferred from one group company to another.
Sources said the decision to vest the land in G&B would in turn boost the valuation of the company. This could make separating the family business in favor of Jamshed Godrej a costly proposition. In terms of turnover, unlisted G&Bs (Rs 11,400 crore in 2019-20) are half the size of Godrej Industries and associate companies (approximately Rs 21,000 crore). it is not clear that Godrej Properties, which is part of Godrej Industries and associate companies, will continue to benefit by developing the property on land owned by G&B, post the separation of the family.
Over and above the 3,401 acres of land, which belong to G&B, is a separate land parcel over which the Godrej Group has been in dispute since 1973 with the state government, which controls the land. The state claims that the land belongs to him and that year he filed a suit against G&B. The dispute is pending in the Bombay High Court.
Responding to TOI’s query on the matter, the Godrej family said in a joint statement: “The Godrej family has been working on a long-term strategic plan for the group over the years to ensure the best value for its shareholders. As part of this exercise, we have also sought advice from external partners. These discussions are going on among the family.”
Godrej is synonymous with family holdings and is the largest maintainer of privately managed mangrove belts in the city.
Of the 3,401 acres located in the eastern suburbs of Mumbai, about 1,750 acres are part of mangroves. Sunabai Pirojsha Godrej Foundation,
A few years back, when the talk of separation started between the two families – Adi Godrej, Nadir Godrej and family (Godrej Industries and associates) and Jamshed Godrej and extended family – real estate was a contentious issue that brought up the question of how the assets would be divided.
Sources close to the family told TOI that it has been decided that real estate owners G&B will retain this as well.
TOI has learned that senior directors of group companies have been administered an oath of secrecy to not talk about the talks. Further, they are prohibited from selling or trading Godrej shares till then. An insider, when contacted by this newspaper, said that it makes sense for G&B to retain the entire land.
“While the possibility of allotment of land through a separate vehicle was discussed, it was difficult to execute as it would attract heavy stamp duty payment based on the ready reckoner value of the land,” the source said. “Stamp duty of 5 per cent will be applicable even if the land is transferred from one group company to another.
Sources said the decision to vest the land in G&B would in turn boost the valuation of the company. This could make separating the family business in favor of Jamshed Godrej a costly proposition. In terms of turnover, unlisted G&Bs (Rs 11,400 crore in 2019-20) are half the size of Godrej Industries and associate companies (approximately Rs 21,000 crore). it is not clear that Godrej Properties, which is part of Godrej Industries and associate companies, will continue to benefit by developing the property on land owned by G&B, post the separation of the family.
Over and above the 3,401 acres of land, which belong to G&B, is a separate land parcel over which the Godrej Group has been in dispute since 1973 with the state government, which controls the land. The state claims that the land belongs to him and that year he filed a suit against G&B. The dispute is pending in the Bombay High Court.
Responding to TOI’s query on the matter, the Godrej family said in a joint statement: “The Godrej family has been working on a long-term strategic plan for the group over the years to ensure the best value for its shareholders. As part of this exercise, we have also sought advice from external partners. These discussions are going on among the family.”
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