Nisaba Godrej steps down from VIP Industries amid family business split

Nisaba Godrej, a prominent figure in the Godrej Group, has resigned as an Independent Director of VIP Industries Ltd, effective June 3, 2024. This resignation also means she will step down from her role in the company's Nomination & Remuneration Committee.

VIP Industries Limited, established in 1968, is a leading global manufacturer and retailer of luggage, backpacks, and handbags. It holds a dominant position in India's organized luggage market and supplies products to over 45 countries worldwide.

Nisaba Godrej serves as the Executive Chairperson of Godrej Consumer Products (GCPL) and has played a crucial role in shaping and transforming the company's strategy over the past decade. She also chairs Teach for India and holds board positions at Godrej Agrovet, Bharti Airtel, and Mahindra and Mahindra. She earned a BSc from The Wharton School at the University of Pennsylvania and an MBA from Harvard Business School.

Recently, the Godrej family, which controls the diverse locks-to-soap conglomerate, agreed to split the company into two branches. This restructuring divides the shareholding and operations into Godrej Enterprises and Godrej Industries. Adi Godrej and Nadir Godrej will continue to lead the listed entities under Godrej Industries, while their cousin Jamshyd Godrej will manage the unlisted companies and the land bank under Godrej Enterprises.

The family settlement agreement submitted to the exchanges covers aspects such as royalty, brand usage, and land bank development. The agreement aims to maintain mutual respect, goodwill, and harmony among the family branches while accommodating their diverse expectations and strategic directions.

Industry leaders have praised the family's handling of the conglomerate's split. On April 30, 2024, Harsh Goenka remarked that the Godrej family settlement was executed with the elegance and dignity characteristic of the family, avoiding any controversies.

Founded in 1897, Godrej Industries Limited is a holding company with interests spanning consumer goods, agriculture, real estate, chemicals, and financial services, and it also serves as an incubator for new businesses. The group comprises five listed companies: Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec LifeSciences. Among these, Godrej Consumer Products is the largest, with a market capitalization of Rs 1.26 lakh crore as of April 30.