Nisaba Godrej Steps Down As Independent Director At VIP Industries

Nisaba Godrej, an heiress of the Godrej Group, has submitted her resignation as an Independent Director of VIP Industries, effective from 3 June, 2024. Consequently, she will no longer serve as a member of the Nomination & Remuneration Committee of the company.

VIP Industries, established in 1968, stands as one of the foremost manufacturers and retailers globally for luggage, backpacks, and handbags, and holds a prominent position in India's organised luggage market. Beyond its domestic presence, the company is expanding internationally, with its products distributed across more than 45 countries.

Nisaba currently holds the position of Executive Chairperson at Godrej Consumer Products Limited (GCPL). She has played a pivotal role in shaping GCPL's strategy and overseeing its transformation over the past decade. Additionally, she serves as the Chairperson of Teach for India and sits on the boards of Godrej Agrovet, Bharti Airtel, and Mahindra and Mahindra. She holds a BSc degree from The Wharton School at the University of Pennsylvania and an MBA from Harvard Business School.

Recently, the Godrej family, controlling the homegrown locks-to-soap conglomerate, reached an agreement to split the company into two branches. They opted to restructure their shareholding within the conglomerate, establishing two distinct entities: Godrej Enterprises and Godrej Industries.

Adi Godrej and his brother Nadir will retain leadership positions within the listed entities under Godrej Industries, while cousin Jamshyd Godrej will assume control of unlisted companies and the land bank under Godrej Enterprises.

The submitted agreement to the exchanges also addressed matters concerning Royalty, Brand Usage, and Land Bank development.

The Family Settlement Agreement (FSA) read, "To preserve mutual respect, goodwill, amity and harmony and to manage diverse expectations and varied strategic directions desired by each Family Branch, the Family Branches have agreed upon a settlement arrangement amongst the Family Branches."

A recurring observation among India Inc leaders regarding the family's decision and execution of the conglomerate split is the commendation for their adept handling of the matter. Harsh Goenka on 30 April, 2024 mentioned, "The Godrej family settlement was ‘locked’ today with the elegance and dignity that the family is known for. No controversies, just all clean like their soaps. Good Knight!"

Founded in 1897, Godrej Industries Limited serves as a holding company with diverse interests spanning consumer goods, agriculture, real estate, chemicals, and financial services. It also functions as an incubator for new ventures. The conglomerate comprises five publicly traded entities: Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences. Among these, Godrej Consumer Products, renowned for brands like Cinthol and GoodKnight, holds the largest market capitalisation among the listed firms, standing at Rs 1.26 lakh crore as of 30 April.