Godrej Group can Currently only Compete in One Industry

By Consultants Review Team Thursday, 02 May 2024

The 127-year-old Godrej Group agreed to a closely monitored corporate split, which states that the family would not compete with one another for six years, with the exception of one firm.

It is stipulated in the agreement that they can only compete in the real estate industry. According to a number of sources on May 2, other companies may compete with one another once the six-year agreement is up, but not under the Godrej brand.

In India as well as other countries, incomplete agreements are common in family settlement proceedings. The Godrejs' non-compete clause went into effect on April 30.

The family settlement agreement states that Adi Godrej and his younger brother Nadir will have the only right to use the brand name in a number of industries, including FMCG (food, drink, cosmetics, cleaning products, and toiletries), financial services, pharmaceuticals, diagnostics, and chemicals.

The Godrej name will only be used in certain industries, including defense, consumer durables, medical devices, building materials, interior design, electric mobility, software services, and security goods. Jamshyd and his sister Smita Crishna are the relatives of Adi and Nadir.

Regarding real estate, both sides are free to utilize the Godrej brand for marketing and development projects.It should be mentioned that Adi and Nadir are in charge of the listed Godrej Properties, while Jamshyd and Smita own real estate through the unlisted Godrej & Boyce.

There will be no royalties required for any of the group companies to use the brand. According to the settlement agreement, one family group may join the other family group's exclusive company after six years, but neither group may use the Godrej brand, even in their corporate identities.

It is permitted for both organizations to go into industries in which they do not now operate. "Using the Godrej brand with group-level differentiators" is what they can do. Healthcare facilities, lodging facilities, educational institutions, and other shared commercial areas are among them.



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