Godrej family settlement: In next 6 years, the two sides can compete in only one business
Godrej Group reached, the family will not compete among themselves for six years except in one business.
Realty is the only business they can compete in, it has been agreed under the deal. As for other businesses, they can compete with each other after the six-year period ends, but not under the Godrej brand name, various reports said on May 2.
In family settlement cases, non-complete agreements are a standard practice, in India as elsewhere. For the Godrejs, the non-compete period started on April 30.
According to the terms of the family settlement agreement, Adi Godrej and his younger brother Nadir will own exclusive privileges for using the brand name across various sectors including FMCG (cosmetics, cleaning supplies, toiletries, foods, beverages), financial services, pharmaceuticals, diagnostics, and chemicals.
Jamshyd and his sister Smita Crishna (Adi and Nadir's cousins) will hold exclusive rights to utilise the Godrej brand across sectors such as defence, consumer durables, medical devices, construction materials, interior design, electric mobility, software services, and security products.
As for real estate, both the parties can use the Godrej name in development and marketing businesses. It may be noted here that Jamshyd and Smita have stakes in real estate via the unlisted Godrej & Boyce, whereas Adi and Nadir oversee the listed Godrej Properties.
None of the group entities will need to pay any royalty for using the brand. The settlement agreement read: “After six years, a family group can enter
