Godrej Group, renowned for its products ranging from soap to safes, has always been at the forefront of innovation. Its journey began alongside India’s struggle for independence, during the heightened fight for freedom in 1987. Amidst the fervor of the Swadeshi movement gaining momentum, Ardeshir Godrej, not just a lawyer but the founder of Godrej, creatively symbolized resistance against the British through his inventions, bridging locks to space exploration.
In 1897, Ardeshir Godrej and Pirojsha Burjorji Godrej started a surgical blade business with just 3,000 rupees, but their attempt didn’t last long. They faced resistance from the British when they tried to label the blades ‘Made in India’, which led to the failure of their first venture. Undeterred, Godrej persisted and one day, while reading the newspaper, he got a new business idea. The increase in thefts in Bombay prompted the police to advise people to secure their homes. This news inspired Ardeshir with a business idea, marking the beginning of Godrej’s success story.
Local Manufacturing Of Secure Locks
During that era, Ardeshir identified the flaws in locks imported from England to India and decided to manufacture locks locally. He established a reputation on the strength of these locks, giving Godrej a distinct identity. Their locks were known to be more secure compared to others available at the time. With borrowed funds, he opened a 215-square-foot warehouse next to Bombay Gas Works and started manufacturing locks. As the business grew, Ardeshir’s younger brother Pirojsha also joined the venture.
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The business gradually expanded. Following locks, they ventured into soap manufacturing. In 1923, they entered the furniture section with almirahs, sparking a trend with Godrej’s almirahs becoming widely popular. In 1952, they developed the world’s first animal fat-free soap. Subsequently, in 1958, they launched refrigerators, and in 1990, Godrej Properties was established. Continuing their diversification, they entered the agriculture sector in 1997. In 2005, Godrej Nature’s Basket launched, followed by their historic contribution to Chandrayaan-1 in 2008, where they provided the launch vehicle and lunar orbiter.
Property Dispute And Division of the Godrej Group
The Godrej Group was embroiled in a property dispute involving assets ranging from soap to safes. The dispute over property division continued for five years, resulting in the company being split into two parts. After the division, one part went to Adi and his brother Nadir, while the other part went to their stepbrother Jamshed and sister Smita. Adi and Nadir received the share comprising Industries and its five listed companies, whereas Jamshed and Smita received the share comprising non-listed companies.
Under the terms of a family settlement, the Adi-Nadir family acquired a 12.65% stake in Godrej Industries through a block deal. This stake was purchased from RKAN Enterprises. Following this acquisition, their ownership in Godrej Industries will increase. RKAN Enterprises is owned by Rishad Neroonjee.
