‘Adi Godrej has created good working climate for shared leadership’

The 79-year-old patriarch of the Godrej group with interests in consumer goods to real estate and security solutions will no longer have any business decision rights and will offer suggestions only if sought in his capacity as chairman emeritus, said a senior group executive.

Group board members said Godrej had informed his decision to step back from all executive roles and had ratified his choices of successors by giving them the space to prove themselves.

“Godrej has created a great working environment for shared leadership of family and non-family professionals. Also, he has a self-aware way of breaking habits associated with leading the group for a long time to make way for others,” said a top independent director at the group.

Adi Godrej did not comment.

Earlier, he had stepped off executive roles at Godrej Consumer and Godrej Properties to let his children, Nisa and Pirojsha who have proven their mettle, take charge. His younger brother, Nadir Godrej, has been given charge at Godrej Industries. Godrej group’s success in the marketplace in recent years is attributed to the successful collaboration of family members with outsiders.

“It is a well thought-out process just the way Adi Godrej handles everything. So, there are no ripples created in any of the group companies by any sudden announcements or decisions. As a group statesman, he will be available for advice sought by any executive, but will not voluntarily involve himself in anything,” said Narendra Ambwani, an independent director at Godrej Consumer Products.

“He attends meetings as chairman emeritus but does not say a word unless he is asked something. He is like a bridge to transition that has taken place. There will be no backseat driving and he has in the process effectively communicated the sense of legacy and responsibilities the next generation has as a custodian of the brand,” said another independent director at one of the group companies.

The Godrej patriarch had expanded the conglomerate’s size and scope in terms of new businesses and geographical reach and ensured that the extended family remained together. He has also been credited with fostering an environment conducive for external talent to work shoulder-to-shoulder with family professionals.

The younger generation will steer the group’s growth plans, such as from its recent entry into the financial services sector, said group watchers.

Adi Godrej was earlier reticent about entering the financial services business, but Pirojsha is now being actively consulted as a financial expert on key decisions on the boards of group companies such as Godrej Consumer, Godrej Agrovet and Godrej Chemicals. Insiders also see him moving into the larger strategic role played by Adi Godrej. Pirojsha is also the chairman of Godrej Home Finance and Godrej Fund Management.

Since joining the 120-year-old family business in 1963, Adi Godrej has helped it transition through a closed, socialist economy into a free-market one.