Godrej Enterprises Group (GEG) is poised to infuse approximately Rs 4,000 crore into its diverse range of business ventures as part of a comprehensive strategy designed to streamline operations across 14 distinct verticals and unlock significant value, particularly from its extensive real estate assets.
Nyrika Holkar, the executive director of GEG, shared these details with The Economic Times in her first public comments since the group’s reorganization in April. Holkar explained that this substantial investment is aimed at enhancing the scalability of GEG’s varied business units while refining the company’s organizational culture to prioritize agility and high performance.
Holkar emphasized that the primary focus of this investment is to refine and expedite decision-making processes, making them more efficient, while also reinforcing the group’s commitment to its “consumer-first” and “nation-first” business ethos. The allocated funds will be directed towards the development of GEG’s consumer-oriented enterprises, including sectors such as furniture, security, and locks.
Additionally, it will support nationally prioritized industries like aerospace and process engineering. A noteworthy aspect of this initiative is the transformation of the furniture division, particularly the Interio brand, which is set to evolve into a lifestyle brand supported by cutting-edge engineering facilities.
GEG’s portfolio encompasses 14 different verticals, including aerospace, appliances, engines, energy, locks, security, building materials, construction, healthcare equipment, durables, and furniture. Currently, the largest revenue generators within GEG are the appliances and interior segments, followed by locks and security.
A significant portion of the new investment will be directed toward maximizing the value of GEG’s substantial real estate holdings in the Mumbai Metropolitan Region, with a particular focus on Vikhroli. “We consider Vikhroli development to be a key area of concentration in the coming years,” Holkar stated, highlighting the group’s intent to optimize the value of its Mumbai real estate assets.
Holkar also discussed the recent realignment of the Godrej Group, which was divided earlier this year between GEG and Godrej Industries Group (GIG). “The division was intricate, especially concerning the Godrej brand, but we navigated it with a principle of fairness,” she noted. The realignment was executed to ensure minimal disruption to ongoing operations and align with the interests of both the family and stakeholders.
This reorganization resulted in the division of the group between Jamshyd Godrej and Smitha Crishna Godrej, with Holkar representing the interests of the latter. Despite the split, Holkar assured that the businesses had been managed independently for years, making the realignment a natural evolution in management rather than a complete overhaul.
GEG has already invested Rs 2,600 crore in its Khalapur and Shirwal plants located in Maharashtra, focusing on advancements in engineering and front-end development. Holkar expressed a strong commitment to transforming Interio into a sought-after lifestyle brand, enhancing the consumer experience through upgraded retail spaces and a shift towards an omnichannel approach.
In alignment with India’s goal of achieving net-zero carbon emissions by 2070, GEG is also dedicated to implementing sustainable practices in construction and the built environment to reduce greenhouse gas emissions, according to Holkar. The group’s strategic investments and emphasis on innovation across its various businesses are anticipated to strengthen its market position and contribute positively to its long-term growth prospects.
Godrej Enterprises Group (GEG) is a diverse conglomerate focusing on 14 verticals, including aerospace, appliances, locks, and furniture. Committed to enhancing scalability and agility, GEG invests heavily in innovation and real estate development, particularly in Mumbai’s Vikhroli area. With a strong emphasis on consumer-first and sustainable practices, GEG aims to drive long-term growth and market leadership.
