The 127-year old Indian conglomerate Godrej’s split, driven by a decision of the Godrej family to realign ownership for smooth succession, is a notable example of both the process and end-goals of strategic decisions taken by family businesses.
Founded in 1897 by two brothers, Ardeshir Godrej and Pirojsha Burjorji Godrej, the group now has fourth-generation leadership. The family pact divides the conglomerate into two groups: Godrej Enterprises and Godrej Industries. One faction of the family gets unlisted companies and a substantial land bank, while the other gains control of five listed firms.