Working on long-term options to settle the matter, says Godrej group

Company News

A day after the Godrej family appointed advisors to help untangle its land holdings in Mumbai, the $4.5-billion group said it was working on long-term options to settle the matter.
In a joint statement issued on Thursday, Godrej group Chairman Adi Godrej and Godrej & Boyce Chairman Jamshyd Godrej said they had sought advice from external advisors to help them think through these options.
“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,” the statement said.
While Jamshyd Godrej has hired veteran investment banker Nimesh Kampani of JM Financial and lawyer Zia Mody of AZB Partners to help in the reorganisation of the land holdings, cousins Adi and Nadir (chairman, Godrej Agrovet) have hired banker Uday Kotak and Cyril Shroff of Cyril Amarchand Mangaldas to assist in the exercise.
At the heart of the disagreement is a 1,000-acre land parcel, part of the 3,400 acres owned by the family in Vikhroli, a northeastern suburb of Mumbai.
This land parcel can be developed into real estate worth up to Rs 1,00,000 crore — taking into account the per square feet price in Godrej’s Vikhroli complex.
The land parcel was acquired by the Godrej family in early 1940s from the Bombay High Court receiver.It was originally given by the East India Company to a Parsi merchant, Framjee Banaji, in 1830s and came up for sale in 1941-42.

 The Godrej family then bought the adjoining land from nearby landowners. It is now owned by unlisted Godrej & Boyce Manufacturing Company.

Godrej family hires top law firms to untangle land holdings worth Rs 20k-cr

Company News

The Godrej family, one of the biggest land owners in Mumbai, has appointed advisors and top law firms to untangle its land holdings. The 1,000-acre land bank at Vikhroli, which can be developed, is worth Rs 20,000 crore at the prevailing rate of Rs 20 crore per acre in the area, according to real estate experts.
While Godrej & Boyce chairman Jamshyd Godrej has hired veteran investment banker Nimesh Kampani of JM Financial and lawyer Zia Mody of AZB Partners to help in the re-organisation of the land holdings, cousins Adi (chairman, Godrej group) and Nadir (chairman, Godrej Agrovet) have hired banker Uday Kotak and Cyril Shroff of Cyril Amarchand Mangaldas, said a source close to the development.
The Godrej group owns 3,400 acres in Vikhroli, a northeastern suburb of Mumbai. Of this, about 1,000 acres can be developed. Another 1,750 acres has mangroves and will not be developed because of environment concerns, Adi Godrej had promised in 2011.
Another 300 acres of land has been encroached upon.
The land parcel can be developed into real estate worth up to Rs 100,000 crore — taking into account the per square feet price in Godrej’s Vikhroli complex.
Godrej family members did not respond to queries. Spokespersons of Kotak Mahindra Bank and JM Financial also did not respond, while law firms Cyril Amarchand Mangaldas and AZB Partners declined to comment.

 The group companies from both sides also have minority stakes in each other and have representations on each other’s boards.The Godrej group was set up by Ardeshir Godrej in 1897 who started his journey by selling locks along with his brother Pirojsha.