Godrej Industries Plans Listing of Capital and Chemicals Business to Boost Market Value

Godrej Industries Group Aims to Double Market Capitalisation to Over Rs 5 Lakh Crore

In a major move, the Godrej Industries Group is planning to list two more businesses from its stable in the next five years, with the goal of more than doubling its market capitalisation to over Rs 5 lakh crore. This ambitious target was revealed by Pirojsha Godrej, the group's chairman designate, during a recent interaction with PTI.

The diversified group, which was carved out after the Godrej family reached an amicable split of the business started in 1897, will invest up to Rs 7,000 crore over the next five years. However, instead of venturing into new areas, the group will focus on strengthening its existing businesses.

Currently, the market capitalisation of the group's three listed businesses - Godrej Consumer Products, Godrej Properties, and Godrej Agrovet - is over Rs 1.60 lakh crore. The addition of the two unlisted businesses is expected to add another Rs 25,000 crore to the group's market capitalisation.

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The group has restricted itself to listing only two of the three businesses, with Pirojsha Godrej hinting that Godrej Capital and Godrej Industries (Chemicals) are the front-runners for listing.

The group's financial services arm, Godrej Capital, is expected to be the fastest-growing business, with the group targeting to grow its assets under management to Rs 1 lakh crore from the present Rs 25,000 crore. The group will focus on growing in an organic manner, with a few strategic acquisitions to complement or expand the product suite at the individual business level.

The group will not be getting into any new businesses and will instead concentrate on strengthening its existing businesses to become industry leaders. The consumer products business may be the most active in terms of acquisitions, with some buys to enter newer categories. The financial services business may also look at entering newer verticals through strategic acquisitions.

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Under the new roadmap, the group will focus on returns, with Pirojsha Godrej stressing that reputation and relevance are earned through results. The group has marked out targets in all key metrics, including 15 per cent sales growth, 20 per cent annual earnings per share, and an 18 per cent return on equity for each business.

Diversity and Philanthropy

The group has also announced a new focus on diversity, with the goal of having 40 per cent of its employees from the women, persons with disabilities, or LGBTQI community by 2031. Additionally, the group has put in an additional Rs 1,000 crore into its philanthropic arm, Godrej Foundation, which will ensure that the yearly spends on social causes go up by 500 per cent per year.

The group has also announced a new purpose - crafting tomorrow since 1897 - and a new brand entity.