All's well: Godrej family says there's no feud

MUMBAI: The Godrej group on Thursday denied any family dispute and sought to play down the supposed rift over use of its landholding by saying that it is discussing ways to look at long-term strategy options. In a statement a day after reports emerged of the family appointing external advisors to untangle agreements relating to land holdings, the group said it is all a part of its long-term strategy exercise.“We have been working on a long-term strategy plan for the group for several years. As part of this exercise, we have sought advice from external partners to help us think through options,” Adi Godrej, chairman of Godrej Group and Jamshyd Godrej, chairman of Godrej & Boyce said in a joint statement.ET and several other media outlets reported on Wednesday and Thursday that differences had cropped up among family members over the usage of the massive land owned by Godrej & Boyce, the family holding company. While Jamshyd Godrej and his family wanted minimal development, Adi Godrej and Nadir Godrej wanted a higher level of development especially as publiclylisted Godrej Properties had apprised investors and shareholders of its ambitious real estate plans.The Godrej group, however, termed the move normal and part of private family discussions.69983295 Godrej & Boyce owns more than 3,400 acre land parcel in Mumbai, the country’s most expensive property market. More than 3,000 acre of this is in Vikhroli suburb, while the rest is in the suburbs of Bhandup and Nahur. Godrej Properties, the group’s real estate arm, has been developing these land parcels through a development management agreement. Under the agreement with Godrej & Boyce, Godrej Properties pays 10-15% revenue of the project to the landowner.Nearly a decade ago, the family-run conglomerate set up a separate body as family board to serve as counsel for growth and handle any issue related to management or succession. Over the past few weeks, the family business board has discussed these issues regarding redevelopment of land parcels and whether there is a need to tweak the existing agreement, officials said. The family is believed to have sought the help of external advisers. Kotak Mahindra Bank CEO Uday Kotak, JM Financial chairman Nimesh Kampani and Cyril Shroff of Cyril Amarchand Mangaldas are believed to be helping the family untangle the situation.

from Economic Times https://ift.tt/2RGAgJw