‘We want to be among leaders, if not the leader’

MUMBAI: Two years after one of India’s most storied business dynasties, Godrej Group, split, Godrej Industries Group (GIG) is targeting 15% annual growth over five years and preparing to list more businesses as incoming chairman Pirojsha Godrej charts its next phase.

GIG, with sales of Rs 57,300 crore, also plans to expand a nascent pet care business and untangle Godrej Agrovet (GAL), which Pirojsha calls “a conglomerate on its own”, spanning animal feed, dairy, poultry and frozen foods.
At GIG’s headquarters in Vikhroli, where his office overlooks a vast stretch of protected mangroves, Pirojsha is clear about the filters guiding these ambitions. “We don’t want to be in spaces where we are a marginal player,” he said. “We want to be among the leaders, if not the leader.”

That principle applies as much to exits as expansion. While acquisitions remain on the table, GIG is willing to prune, shifting capital from sub-scale or non-core bets to businesses where it sees growth potential.

Pirojsha, who started as a management trainee in 2004 and has been heading Godrej Properties (GPL), describes GIG as a “129-year-old but two-year-old group”. The 46year-old, a father of two, said: “We have the characteristics and advantages of an established group but we’re also new (following the 2024 split). It is both a great opportunity and a big responsibility to script the next chapter.”

He takes over as chairman from his uncle Nadir Godrej in Aug, following a separation that stood out in corporate India for the absence of public acrimony.

“It wasn’t straightforward or quick. There were genuine differences, but there was always a shared commitment to resolve things amicably,” Pirojsha said, measured in his response. If anything, the aftermath has been calmer.

“I’ve been on holiday with some of my cousins from the other side,” he said, with a brief laugh. “We’ve all grown up together.” With business decisions now independent, “that potential source of disagreement has effectively been resolved.”
The split created two groups. The other faction, Godrej Enterprises Group (GEG), led by Jamshyd Godrej, has revenues of Rs 19,769 crore.

That equanimity extends to the groups’ most consequential shared asset—the Vikhroli real estate holdings. Despite speculation that the parcels were central to the dispute, Pirojsha said the partnership framework was left largely untouched and continues as before.

Under the arrangement, GEG—which owns the Vikhroli land—will act as developer, while GPL will serve as marketing manager, focused on sales and entitled to 10% of the project topline. The arrangement covers all Vikhroli properties, with both sides retaining equal rights to Godrej brand in the region. Outside, brand usage will follow first-mover precedence, resting solely with GPL. Both groups are also bound by a six-year non-compete.

For GIG, the next five years come with defined targets. Sales are expected to grow at least 15% annually, while earnings per share are projected to rise 20% each year. As newer businesses like financial services mature, each is expected to deliver at least 18% return on equity. If achieved—and with planned listings of the chemicals and financial services businesses—the group’s market capitalisation could reach Rs 5 lakh crore, roughly three times current levels. The targets, Pirojsha said, are being made public deliberately to “hold ourselves accountable, both internally and externally.”

Currently five companies are listed: Godrej Industries, the holdco of GIG, Godrej Consumer Products (GCPL), GPL, GAL and Astec LifeSciences, a subsidiary of GAL.

Within the portfolio, GPL has been among the fastest-growing, scaling nearly fourfold in four years—from under Rs 8,000 crore in sales to over Rs 34,000 crore. Yet, he points out, it still has only about 5% market share nationally—“which tells you the opportunity.”

GCPL, meanwhile, has navigated a more uneven recovery, with a K-shaped demand pattern post-pandemic with premium segments outpacing mass-market ones. Pirojsha, however, pointed to green shoots: GST cuts, new launches such as Godrej Fab liquid detergent, and the acquisition of Muuchstac in men’s face wash.

GAL presents a different kind of challenge. Pirojsha said the business is likely to be restructured over time. “It’s quite diversified,” he said. “That makes it harder for the market to fully understand.”

For a family split that lacked the drama of a Hindi movie, Pirojsha is building a modern film studio in Panvel. The Godrej story, it seems, has moved on to its next scene.