Godrej & Boyce, which will remain the holding company of the Godrej Enterprises Group (GEG), will be investing over ₹7,500 crore over the next three years to build technological capabilities and design-led innovation.
The Chairman and Managing Director of GEG, Jamshyd Godrej, said that Godrej & Boyce is expected to end FY25 with revenues of ₹18,000 crore. The appliances business will contribute ₹5,000 crore and Godrej Interio around ₹3,500 crore. The group’s revenues have been growing at 15-20 per cent and Godrej expected that to be sustained.
A public listing of the holdco, Godrej & Boyce, is not on the cards right away, Godrej said though he did not rule it out sometime in the future.
“There is nothing that is going to happen in the immediate future, but to say that nothing will ever happen is not correct,” Godrej told businessline at an event to unveil the new branding and logo of the group. GEG consists of Godrej & Boyce and its affiliates.
Godrej explained that part of the reason for Godrej & Boyce remaining unlisted was that its growth has been manageable through internal accruals, including big investments. “So, we are managing that.. a time may come when we may want to do that (listing), but nothing is decided about that.”
Around 60 per cent of the group’s revenues are from the consumer business.
He also said that it was unlikely that either of the two groups – GEG and Godrej Industries Group – would enter each other’s businesses after the six-year non-compete period expired. The Godrej group announced its split in May with the Godrej Industries Group, headed by Adi Godrej and his brother Nadir Godrej, and GEG, headed by Jamshyd Godrej and his sister Smita Crishna.
Three clusters
GEG would have three distinct clusters — the consumer business, the nation-building cluster consisting of aerospace, aviation, defence and advanced engineering segments, and a future-first cluster that would include battery storage and green energy solutions.
The nation-building cluster is seen growing faster, given the government thrust on infrastructure and the government policies, but the group will be focusing on both clusters in terms of investments and capital allocation, Executive Director, Nyrika Holkar, said.
“In terms of opportunity and focus, it will be on both clusters of businesses.” She added that significant investments would also be going into research and development.
Godrej added that the growth of the infrastructure and engineering segments would depend a lot on government policies and contracts. “So far, I think ever since the government has shown much greater interest in dealing with the private sector, and allowing the private sector to do much more, there’s been a steady growth. Those businesses, grow at 15-20 per cent annually. Some of them grow even faster,” he said.
New brand
GEG also unveiled its new logo and brand identity, which was dominated by a striking shade of purple, while retaining the cursive logo reminiscent of the founder Pirojsha Godrej’s signature.
The brand repositioning is expected to benefit its diverse business units across both B2B and B2C segments.