The Godrej family has owned a very big company in India for over 100 years. Recently, they decided to split this big company into two smaller companies. This was a big change after so many years.
But the Godrej family found a way to do this split nicely, without any fights or problems between the family members. Harsh Goenka, an important business person, praised how clean and peaceful the split was.
Let’s learn more about the Godrej company, why they split it, and how the family agreed on the split without any issues.
A Long History
The Godrej company started in 1897. That was over 125 years ago! Back then, they made locks for doors and safes to keep money and valuable things safe.
Over the many years, Godrej became a very large company. They made all kinds of products like soap, refrigerators, furniture and more. They also built big buildings and houses.
Godrej had different parts or divisions doing different types of business. One part did consumer products like soap. Another part built buildings and offices. They all came under one big Godrej group.
Why Did They Want to Split?
As the company grew very big over many years, the Godrej family also grew bigger with more members. The different parts of the business also became quite different from each other.
Some family members felt the consumer product businesses like soap were very different from building offices. They wanted more focus on their type of business. Other family members liked building more.
Also, as the family grew bigger with many members now, it became difficult for one person to manage such a huge company. They needed to split it to make management easier.
So after discussing a lot, the family decided splitting the big Godrej group into two separate companies would be better. This would allow each part to focus better and be managed easier too.
The Clean Split
When big families split a large business, usually there are lots of fights over money and control. But the Godrej family found a very nice way without any problems!
They divided the two parts of the business fairly according to the work and money each part brought. Some family members would lead one new company while others led the second company.
The family also clearly wrote down who would control and own what in each new company. This avoided any confusion later.
They announced the split decision with respect for each other. No family member spoke against others during this.
Even Harsh Goenka praised how clean and nice the Godrej family split their big business. Just like Godrej soap which cleans cleanly! The family also stayed united and friendly like before.
A Smooth New Beginning
Now the Godrej group is split into two new companies that are separate from each other. One company has consumer product businesses of soap, etc. The other company builds offices and homes.
The family members leading each new company can focus better on their type of business. Decision making has also become faster as the work is divided.
Though a big change, the Godrej family found a very good way to split their large group smoothly and peacefully. Other large families can learn from how they handled this in a clean manner, keeping family unity.
The Godrej name will continue to grow strong in both the new companies. Their clean split ensures both parts have a bright future, just like the clean soaps continue to make people happy!
