NEW DELHI: Jamshyd Godrej and his sister controlled Godrej & Boyce will control the group’s vast land bank, including 3,000 acres of prime Mumbai property, while the other faction-led by Adi Godrej and Nadir Godrej will get to market the real estate projects for management fees.
On May 1, the owner-developer Godrej & Boyce and the development manager Godrej Properties had announced that the two companies would continue their Memorandums of Understanding (MoUs) executed from time to time, for development of land in Vikhroli, Mumbai owned by Godrej & Boyce, as and when the owner intends to developing the said land.
In an interview with PTI after the announcement of its financial results for 2023-24 fiscal, Godrej Properties Executive Chairperson Pirojsha Godrej said the company has been the development manager for the real estate projects and the same arrangement would continue.
“Godrej Properties will be the development manager and Godrej & Boyce will be the owner and the developer. We will get a development management fees for our role in marketing the project and that is equal to 10 per cent of the revenue in the projects,” Pirojsha said.
Under the Development Management (DM) model, he said two projects – Godrej Platinum and Godrej Vistas – have been launched in Mumbai.
“There will be many more projects we expect under the DM partnerships,” Pirojsha said, but declined to comment on the total land bank and development potential in terms of area as well as sales value.
Under the DM model, the construction cost is borne by the developer.
In their joint statement dated May 1, Godrej Construction, part of Godrej & Boyce, designed and built four phases of Godrej Platinum, a residential development project with a total constructed area of 1 million (10 lakh) square feet, which has been marketed by Godrej Properties.
In March 2024, a new project named Godrej Vistas was successfully launched under this arrangement.
“The future development of Vikhroli presents a unique opportunity to create a holistic space in the metropolis of Mumbai where urban development and biodiversity co-exists harmoniously. Godrej Construction and Godrej Properties bring complementary strengths, and this has translated into the launch of successful real estate projects in Vikhroli,” Godrej & Boyce Chairperson & Managing Director Jamshyd Godrej had said.
Pirojsha Godrej had said, “We look forward to continuing our association with Godrej & Boyce (G&B) with a view to making Vikhroli into a world-class neighbourhood that delivers its residents an outstanding quality of life while ensuring the highest standards of sustainable development.”
According to some estimates, the 3,000-acre parcel in Vikhroli owned by G&B has a development potential of over Rs 1 lakh crore. It can develop 1,000 acres, while about 1,750 acres are covered with mangroves and is the destination of rare plants and birds. About 300 acres of land have already been encroached upon.
The Vikhroli property was bought at a public auction from the Bombay High Court receiver in 1941-42 by Pirojsha Godrej, younger brother of group founder Ardeshir Godrej. It was previously owned by a Parsi merchant Framjee Banaji, who bought it from the East India Company in the 1830s.
Under the family settlement announced late on Wednesday, the group has been split between two branches of the founding family, with Adi Godrej (82) and his brother Nadir (73) on one side and their cousins Jamshyd Godrej (75) and Smita Godrej Crishna (74) on the other.
Godrej Enterprises Group, comprising Godrej & Boyce and its affiliates that have a presence across multiple industries spanning aerospace and aviation to defence, furniture and IT software, will be controlled by Jamshyd Godrej as chairperson and managing director. His sister Smita’s daughter Nyrika Holkar, 42, will be the executive director.
Their families will control this arm that also will hold the land bank, including 3,400 acres of prime land in Mumbai.
Godrej Industries Group, which includes the listed companies – Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet and Astec LifeSciences – will have Nadir Godrej as chairperson and will be controlled by Adi, Nadir and their immediate families.
