Godrej Industries recently announced its five-year vision to become a Rs 5-lakh crore market cap company. And to achieve this, the group is planning to list two of its three unlisted businesses – Godrej Capital, Godrej Chemicals and Godrej Ventures. Pirojsha Godrej, who is all set to take over as the chairman of the group in August this year, shares with Dipak Mondal the company’s sharper performance metrics going forward. Excerpts:
As you prepare to take over as chairman, are there specific priorities or goals you want to focus on?
I have been part of the group leadership for many years — initially focused on Godrej Properties, and since 2017, playing a broader group role. The group is already moving in the direction I would like. Over the past five years, we have delivered over 20% growth in both sales and earnings. Going forward, we want sharper performance metrics—especially on return on equity—and aim to be among the best performers in every sector we operate in.
You spoke about your vision of a Rs 5 lakh crore market cap and listing of new companies. Do you also plan to enter any new sectors?
There are several plans at the individual business level. For example, in FMCG, we have started a pet care business. In ventures, we have launched two new businesses—a film studios business and a managed office business.
However, at the group level, our primary focus is on unlocking the full potential of the six existing businesses. This includes listing some unlisted businesses and ensuring strong performance from the listed ones. Beyond this phase, we will look at additional opportunities.
You said that Godrej Capital will be a key growth driver. What are your plans? Will it remain a pure-play lending business?
Currently, it is focused entirely on lending, with both an NBFC and a housing finance company. We plan to expand into new lending products — gold loans and personal loans, for instance. At present, we offer housing loans, LAP (loan against property), and business loans. Going forward, the lending business will expand both geographically and through new product lines. We are also exploring other asset classes within financial services, though nothing to announce yet.
You currently have three unlisted businesses. Which of these are likely to be listed by 2031?
We have plans to list multiple businesses, but the first two are likely to be financial services and chemicals.
You mentioned infusing ₹5,000–7,000 crore into unlisted businesses. Can you elaborate?
Over the next five years, that is the estimated capital requirement for these businesses. Some of it will come from the group, while some will be raised at the business level. Listed companies will raise their own capital.
With new sectors like defence, semiconductors, and electronics manufacturing gaining traction in India, are you considering entering these areas?
Our approach is to bring a modern, future-forward lens to our existing businesses. For instance, our financial services business is investing heavily in AI, tech, and digital capabilities. Similarly, in real estate, we are exploring disruptive construction technologies.
While we may explore new sectors over time, these areas also come with higher risks and strong competition. For now, we believe the opportunity within our current businesses is substantial and requires full focus.
What are the Godrej Properties expansion plans in Delhi-NCR?
Delhi-NCR has been one of our best-performing markets, with about Rs 28,000 crore worth of sales over the past three years. Noida is a strong market with good demand and limited supply. We plan to participate in upcoming land opportunities and expand further in the region.
How has the southern real estate market performed best for you recently?
The South Zone—Bengaluru, Hyderabad, and Chennai—performed exceptionally well this year. In fact, for the first time, it was our top-performing region. Hyderabad has been particularly strong—we entered the market recently and achieved over ₹3,000 crore in sales in the first year itself.
Could AI-driven layoffs impact real estate demand?
It’s too early to say. While there may be short-term disruptions, technology also creates new jobs and opportunities. If there are layoffs, office space demand may be affected in the short term. But we need to wait and see how things evolve.
Given recent geopolitical tensions in the Middle East, what is your outlook for the FMCG sector?
Despite disruptions and input cost pressures, the FMCG sector—and our business specifically—has performed well. There has been a K-shaped recovery post-pandemic. Premium-focused businesses have done exceptionally well, while mass-market segments have faced challenges.
For us, the first half of the last financial year was slow, but the second half showed strong recovery. We are entering this year with good momentum, supported by growth in newer categories like face wash and liquid detergents.
Is rupee depreciation affecting input costs?
To some extent, yes—especially for imports. However, exports become more competitive. A bigger concern is that currency volatility may discourage foreign institutional investment, which is crucial for India’s growth.