Godrej Enterprises Group (GEG) is set to inject around Rs 4,000 crore into its various business ventures as part of a comprehensive strategy to streamline operations across 14 verticals and unlock substantial value, particularly from its extensive real estate holdings. Nyrika Holkar, executive director of GEG, told The Economic Times, in her first public remarks since the group’s reorganisation in April.
Holkar highlighted that the new investment aims to enhance the scalability of GEG’s diverse businesses and refine its organisational culture to focus on agility and performance. The group’s focus is only refining their decision-making process, making it efficient and faster, while also reinforcing their “consumer-first and nation-first businesses”.
The allocation of funds will be channeled into the development of GEG’s consumer-focused enterprises, such as furniture, security, and locks, along with its nationally prioritised sectors like aerospace and process engineering. Notably, the furniture division, especially the Interio brand, is poised for a transformation, evolving into a lifestyle brand supported by state-of-the-art engineering facilities.
Key focus: Vikhroli development
GEG’s portfolio includes 14 verticals such as aerospace, appliances, engines, energy, locks, security, building materials, construction, healthcare equipment, durables, and furniture. Notably, the appliances and interior segments are currently the largest revenue generators, followed by locks and security.
A significant portion of the investment will focus on leveraging GEG’s substantial landholdings in the Mumbai Metropolitan Region, especially in Vikhroli. “We view Vikhroli development as a key focus area for the coming years,” Holkar told The Economic Times, emphasising the group’s intent to optimise the value of its Mumbai real estate.
Godrej realignment: Equity first
Holkar also addressed the realignment process of the Godrej Group, which was divided earlier this year between GEG and Godrej Industries Group (GIG). “The division was complex, particularly concerning the Godrej brand, but we navigated it with a principle of equity,” she said. The realignment was conducted to ensure minimal disruption to ongoing operations and align with the interests of the family and stakeholders.
The reorganisation saw the division of the group between Jamshyd Godrej and Smitha Crishna Godrej, with Holkar representing the latter’s interests. Despite the split, Holkar assured that the businesses had been managed independently for years, making the realignment a natural progression in management lines rather than a complete overhaul.
Green push: Engineering and lifestyle
GEG has invested Rs 2,600 crore in its Khalapur and Shirwal plants in Maharashtra, focusing on engineering advancements and front-end development. Holkar expressed a strong commitment to enhancing Interio as an aspirational lifestyle brand, improving the consumer experience through revamped retail spaces and a pivot to an omnichannel approach.
In line with India’s goal of achieving net-zero carbon emissions by 2070, GEG is also dedicated to sustainable practices in construction and the built environment by mitigating greenhouse gases, Holkar said.
The group’s strategic investments and focus on innovation across its businesses are expected to bolster its market position and contribute positively to its long-term growth trajectory.
First Published: Aug 29 2024 | 12:01 PM IST