Mumbai, Apr 22 (PTI) Godrej Industries Group is looking to list two more businesses from its stable in the next five years, and more than double its market capitalisation to over Rs 5 lakh crore, a top official said on Wednesday.
The group, which was carved out after the Godrej family reached an amicable split of the business started in 1897, will invest up to Rs 7,000 crore over the next five years, but concentrate on strengthening its existing businesses rather than getting into newer areas.
Pirojsha Godrej, who was recently appointed as the chairman designate, said the diversified group will increase focus on profitability and financial returns while upholding the values that have guided it for over a century.
At present, the market-cap of its three listed businesses - Godrej Consumer Products, Godrej Properties and Godrej Agrovet - is over Rs 1.60 lakh crore, while the two unlisted ones will add another Rs 25,000 crore, he said.
Pirojsha said the group wants to retain "flexibility" and is hence restricting itself to listing only two of the three businesses.
"Two out of the three will get listed. I think capital and chemicals are probably the two front-runners for our listing," he told PTI in an interaction.
The third business is a relatively newer venture called "Godrej Ventures", which is building a modern film studio near the Navi Mumbai International Airport and also manages offices, he said.
It can be noted that the Jamshyd Godrej-led Godrej Enterprises Group, the other part of the family business, split in 2024, has companies with interests in aerospace, appliances and furniture, which are unlisted.
Godrej Industries Group's financial services arm, Godrej Capital, where the group has invested Rs 5,000 crore, will be the fastest growing among all the businesses.
The group is targeting to grow the assets under management of Godrej Capital to Rs 1 lakh crore from the present Rs 25,000 crore, he said.
The group will be focusing on growing in an organic manner rather than through acquisitions, Godrej said, adding that there can be a few tuck-in buys to complement or expand the product suite at the individual business level.
On the investments front, he said the listed businesses will fund their own growth going ahead, and the group will pump Rs 5,000-7,000 crore in the unlisted ones over the next five years.
The group will not be getting into any new business and would rather concentrate on strengthening the existing businesses to be the industry leaders, he pointed out.
On the acquisitions front, the consumer products business may be the most active with some buys to enter newer categories, he added.
The financial services business may also look at entering newer verticals through some buys at the portfolio level, he said, adding that microfinance interests the entity.
Under the new roadmap, there will be a strong focus on returns, Godrej said, stressing that reputation and relevance are earned through results.
The group, which recorded a 20 per cent or more growth in sales and post-tax profits for each of the last five years, has marked out targets in all the key metrics, he said.
Godrej Industries is aiming for 15 per cent sales growth, 20 per cent in annual earnings per share and an 18 per cent return on equity for each of the businesses going ahead, he said.
Keeping in mind the focus on values, Godrej said, diversity is a very important aspect and announced that 40 per cent of the group's employees will be either women, persons with disabilities or LGBTQI community members by 2031.
The group has put in an additional Rs 1,000 crore into its philanthropic arm Godrej Foundation recently, which will ensure that the yearly spends on social causes go up by 500 per cent per year, he said.
The group also announced a new purpose - crafting tomorrow since 1897 - and a new brand entity on Wednesday.