Godrej Family Issues Joint Statement That It Has Sought Help From External Advisors For Long-Term Strategy On Land

The Godrej group has issued a statement that it is has sought help from external advisors to help work on a long-term strategy plan relating to its land holdings.

“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 an official joint statement issued recently.

Earlier, a section of the media had hinted at probable differences among Godrej family members regarding the usage of the more than 3,400 acre land parcel owned by Godrej & Boyce, which is the family’s holding company.

It was also reported that the family is believed to have sought the help of external advisers like Kotak Mahindra Bank CEO Uday Kotak, JM Financial chairman Nimesh Kampani and Cyril Shroff of Cyril Amarchand Mangaldas.

However, the Godrej group has termed the move as a normal part of private family discussions, along with the recent official joint statement.

Incidentally, Godrej & Boyce owns more than 3,400 acre land parcel in Mumbai. More than 3,000 acre of this land is in the northeastern Mumbai suburb of Vikhroli, while the rest of the land 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% to 15% revenue of the project to the landowner.

Over the past few weeks, the family business board has discussed these issues regarding redevelopment of land parcels and whether there is any need to tweak an already existing agreement.