The founding family of the Godrej Group split earlier this year, with Jamshyd Godrej and family getting the unlisted Godrej and Boyce and its affiliates, as well as land bank and property in Mumbai.
Godrej Enterprises Group, which comprises Godrej and Boyce and its subsidiaries, is now repositioning itself, identifying three key growth areas and unveiling a new brand identity in the first such revamp post the group split.
The Godrej Enterprises Group has diversified businesses from consumer durables to furniture, locks and security solutions, and even aerospace.
It is learnt that the group will invest around Rs 7,500 crore over the next three years.
The company has identified three clusters—Consumer, Nation (aerospace, advanced engineering, etc.), and Future First (green hydrogen, zinc-manganese battery, and recycled construction materials) as it looks to scale up.
Godrej Enterprises Group is "aiming for" a revenue of Rs 20,000 crore, Nyrika Holkar, its executive director, said on Thursday.
The revenue is around Rs 16,000 crore now, with consumer businesses alone accounting for Rs 10,000 crore of it.
Sustainability is going to be a big focus area for the group, and it hopes 50 per cent of the revenue by 2032 will come from green products.
"In our consumer businesses, which would be a large part of our revenue, we are looking from an interior furniture perspective, in terms of green pro certification, in terms of ensuring that whatever wood we are sourcing is coming in a sustainable way. Then from the appliance perspective, how do we build more energy-efficient appliances, but more importantly is how do we bring the price down...," said Holkar.
The company has also done some pilots in recycled concrete in projects like the coastal road in Mumbai, she pointed out.
The perception is that if the material is not virgin, it is not strong. But the durability of recycled concrete is not an issue, noted Holkar. While the pilots have only been in Mumbai, the company wants to scale it up.
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"According to the building codes, you need virgin material... Because of the building codes, we thought it was important for us to do a pilot, prove it, so that acceptance would be higher," said Holkar.
Battery storage is also part of the Group's growth plans.
"Most batteries that are used in the world are either lithium-ion or sodium-ion. We have looked at a totally different chemistry, and this chemistry is based on zinc and manganese and we have a pilot plant that is already up and running and we expect to be part of the energy transition in India in a strong way with battery storage," said Chairman and MD Jamshyd Godrej.
'Never felt the need to go public'
Despite having sizeable businesses and operations, Godrej and Boyce has been an unlisted company, and that is unlikely to change anytime soon.
"Godrej and Boyce has always been a closely held company, and because of strong businesses and strong cash flow, we have always been able to manage our internal needs of capital in our businesses," said Godrej.
The group never felt the need to go public, he said.
"However, as we go forward, I think, as you can see, there are many exciting opportunities and possibilities. So, I won't say that we will never list any of our businesses, but that's not something that is on the cards right away," he added.
The Godrej Group had amicably split, earlier this year, where the Godrej Industries-led listed entities, including Godrej Consumer, Godrej Properties and Godrej Agrovet, went to brothers Adi and Nadir Godrej and their family.
Godrej and Boyce led by Jamshyd Godrej has control over the vast land bank in Mumbai's suburb of Vikhroli, where the groups are headquartered. The memorandum of understanding the groups have had over the development of the land, will continue, Godrej said.
"Godrej and Boyce continues to be holding all the land in Vikhroli. We have had an agreement with Godrej Properties for last many years whereby we develop the property and Godrej Properties does the marketing and sales of the property," he said.
Nothing has changed after the split, added Godrej.
