The Godrej group rejected dispute with the family regarding land ownership.

By Abhay Shah, Realty Quarter

On Thursday, the Godrej Group denied any family dispute and sought to overcome the supposed rift over land ownership by saying that they discuss ways of considering long-term strategic options. In a statement a day after reports came out of the family that designates external advisers for untangling agreements on land holdings, the group stated that it is a long term strategy exercise.

“For several years we have worked on a long-term group strategic plan. We have sought advice from external partners to help us think about options in this exercise,” said Adi Godrej, chairman of Godrej Group, and Jamshyd Godrej, chairman of Godrej & Boyce in a joint declaration.

The Wednesday and Thursday report state that the use of Godrej & Boyce, the family holding company, has caused differences among the family members. Jamshyd Godrej and his family wished minimum development but, above all because Godrej Properties had apprised its ambitious proposals to investors and shareholders, Adi Godrej and Nadir Godrej wished to have greater levels of development.

In Mumbai, the country’s most expensive real estate market, Godrej & Boyce has over 3,400 acres of land. In Vikhroli suburb there are more than 3,000 acres, the remaining is in Bhandup and Nahur suburbs. These parcels are being developed by Godrej Properties, the real estate arm of the group, under a development management agreement. Godrej Properties will pay the landowner 10-15% of revenue under the contract with Godrej & Boyce.

About a decade ago, the family-run conglomerate created a separate body as a family board to serve as a growth consultant and deal with all management and succession issues. The family business board has debated these problems in the last few weeks with regard to land parcel redevelopment and whether the current arrangement needs to be tweaked, representatives stated. The family is assumed to have requested assistance from external advisors. Kotak Mahindra Bank CEO Uday Kotak, JM Financial chairman Nimesh Kampani and Cyril Shroff of Cyril Amarchand Mangaldas are believed to assist the Family to resolve the situation.