After restructuring, the 127-year-old Godrej Group has split into two entities: Godrej Industries Group and Godrej Enterprises Group (GEG). Following the division, GEG has commenced work on a new strategy. The group includes non-listed companies like Godrej & Boyce and several others. The leadership is collaborating with Boston Consulting Group to develop a strategic plan focused on creating integrated and scalable consumer and industrial solutions businesses. Sources indicate ongoing internal discussions in this matter, with the group considering the creation of various scalable business units to drive future growth.

The group owns approximately 3,400 acres of land in Mumbai, including a parcel of 3,000 acres. According to a source, Godrej Industries Group holds several listed companies, while GEG possesses non-listed units. The group has been conservative in this matter, but after the division, it may now plan aggressive strategies to accelerate growth. The group also aims to maximize benefits from land in Mumbai. Control of GEG lies with Chairman and MD Jamshed Godrej, and Executive Director Nisaba Godrej.

Currently, the group’s revenue is approximately 16,000 crore rupees, with 14 verticals under its umbrella. These include tools, defense, engines and motors, energy, security, construction materials, construction, healthcare equipment, durable goods, furniture, and interiors. The largest source of revenue for GEG comes from the Appliances and Interior business. In the fiscal year ending March 2024, Godrej & Boyce recorded sales of 16,182 crore rupees, marking a 9% increase from the revenue of 14,796 crore rupees in fiscal year 2023. The company’s profit for fiscal year 2024 surged by 417% to reach 603 crore rupees.

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Godrej & Boyce has planned to invest 40 crore rupees over the next three years to expand its consumer brands’ presence in Tier-2 and Tier-3 cities. The company aims to achieve a 15-20% annual growth in its income. The Appliances business anticipates a 30% revenue growth in fiscal year 2025, launching about 50 new models. Last month, the company set a goal for its Motor Component Division to enter India’s EV market and double its income to 1,000 crore rupees.

In fiscal year 2023, the Consumer Business contributed 61% or 8,662 crore rupees to the total revenue. The Industrial Products Business contributed 33% or 4,765 crore rupees. Godrej Appliances, a key subsidiary of Godrej & Boyce, became India’s first company to manufacture refrigerators in 1958. Since then, it has expanded its portfolio to include washing machines, air conditioners, microwave ovens, and more. However, it has faced significant competition in the market following the entry of foreign companies like LG and Samsung.

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