Godrej Business Split: Who Owns The Vikhroli Land Parcel Now

The Godrej family has unveiled a new shareholding structure within the sprawling group, with a focus on restructuring their land bank holdings.

As part of the ownership realignment, Godrej & Boyce — the owner-developer — and Godrej Properties Ltd. — the development manager — will continue their memorandums of understanding executed from time to time for the development of the former's land in Mumbai's suburb Vikhroli.

The proposed development will take place when the landowner Godrej & Boyce is desirous of developing the land, according to a joint release.

"The future development of Vikhroli presents a unique opportunity to create a holistic space in the metropolis of Mumbai where urban development and biodiversity co-exists harmoniously," said Jamshyd Godrej, chairperson and managing director of Godrej & Boyce. "Godrej Construction and Godrej Properties bring complementary strengths, which has translated into the launch of successful real estate projects in Vikhroli."

Godrej Construction, a division of Godrej & Boyce, completed the design and construction of four phases of Godrej Platinum, a residential project encompassing a total built-up area of 1 million square feet. The project was marketed by Godrej Properties. In March 2024, a new project named Godrej Vistas was successfully launched under this arrangement.

"We look forward to continuing our association with Godrej & Boyce with a view to make Vikhroli into a world-class neighborhood," Pirojsha Godrej, executive chairperson of Godrej Properties, said.

The Godrej Group owns over 3,400 acres in Mumbai's eastern suburb of Vikhroli. The family secured ownership of this property from the receiver of the Bombay High Court during the 1940s.

A large chunk of this total land holding falls under ecologically sensitive mangroves and around 1,000 acres can be developed. Valuation of this developable land itself is around Rs 4.35 lakh crore. This is roughly twice the market capitalisation of the Godrej Group’s five listed companies.

The Vikhroli mangroves, under the guardianship of Godrej & Boyce and the Godrej Foundation, achieved the distinction of becoming India's inaugural ISO 14001 certified forest in 1997. Originally allocated to a Parsee merchant by the East India Company in the 1830s, this parcel of land became available for purchase during World War II in the early 1940s.

After acquiring the land, the Godrej family strategically expanded their property by procuring additional adjoining parcels through negotiations with over 200 nearby landowners. This increased their total holding to an impressive 3,400 acres.

Godrej Properties is owned 58.48% by the promoter family and group companies. Serving as a crucial entity within the group, Godrej Properties assists in monetizing the group's land bank.

By signing a memorandum of understanding with group entities, the company has established a partnership to develop land parcels using the development management agreement model. This strategic collaboration ensures long-term business visibility for all parties involved.