Credit Bulletin
May 10, 2024 | Mumbai
 
Update on Godrej Group
 

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CRISIL Ratings (CRISIL) has taken note of the announcements/disclosures made by various entities of the Godrej Group primarily pertaining to the Family Settlement Agreement (FSA) and the Brand & Non-Compete Agreement (BNCA), both dated April 30, 2024, entered into between members of the Godrej family.

CRISIL has outstanding ratings on various entities of the Godrej group (listed below).

Among these CRISIL rated entities (as specified in the table below) and as per the FSA, Godrej & Boyce Manufacturing Company Ltd will become a part of the Godrej Enterprises Group (GEG), to be managed and controlled by Mr. Jamshyd N. Godrej (JNG) and Ms. Smita Vijay Crishna (SVC) and their immediate relatives, while the rest of the CRISIL rated entities (specified in the table below) will become a part of the Godrej Industries Group (GIG), to be managed and controlled by Mr. Adi Burjorji Godrej (ABG) and Mr. Nadir Burjorji Godrej (NBG) and their immediate relatives  No change in the executive management of any of these entities is proposed.

 

Further, as part of the FSA, shareholding in various entities held by the Godrej family members would be realigned on the effective date of the FSA post receipt of necessary regulatory approvals. Additionally, the BNCA records the understanding of the family members with respect to delineation of the rights for adoption, use, ownership and registration of the Godrej brand as well as non-compete obligations for the family members.

 

The ratings of these entities are driven by the strength of their individual business and financial risk profiles as well as strong financial flexibility being part of the Godrej Group. CRISIL, basis discussions with the management of key group entities, is of the view that the developments in relation to the execution of the FSA and BNCA are not expected to impact the credit risk profiles of these entities.

 

CRISIL understands from the management that none of the group entities are a party to the FSA and no shares of the listed entities of the group are likely to be pledged by the promoters/promoter group to give effect to the FSA.

 

For accessing the Rating Rationale of the companies, refer to the following links:

Company Name

Link to previous Rating Rationale

Godrej Industries Ltd

Click here

Godrej Seeds and Genetics Ltd

Click here

Godrej Consumer Products Ltd

Click here

Godrej Properties Ltd

Click here

Godrej Agrovet Ltd

Click here

Creamline Dairy Products Ltd

Click here

Godrej and Boyce Manufacturing Company Ltd

Click here

Godrej Finance Ltd

Click here

Godrej Housing Finance Ltd

Click here

Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
Criteria for rating holding companies (including debt backed by pledge of shares)
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation

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