Godrej Enterprises Group (GEG) plans to invest Rs 4,000 crore across its diverse business segments, aiming to enhance operational efficiency and unlock the value of its real estate assets, particularly in Mumbai. This announcement comes from Nyrika Holkar, executive director of GEG, in her first public comments following the group’s restructuring in April.
Holkar noted that this investment will focus on scaling up the group’s various business lines while fostering a culture centered around agility and performance. The group aims to refine decision-making processes to be faster and more efficient while maintaining its core focus on consumer-driven and nationally significant businesses.
Focus Areas for Investment
The funding will be directed toward developing GEG’s consumer-oriented sectors, including furniture, security, and locks, as well as strategic sectors such as aerospace and process engineering. A significant emphasis will be placed on the furniture business, especially the Interio brand, which is set to undergo a transformation into a lifestyle brand with cutting-edge engineering support.
Real Estate Focus: Vikhroli Development
GEG’s portfolio comprises 14 verticals, including aerospace, appliances, engines, energy, and furniture, among others. Currently, the appliances and interiors divisions generate the highest revenue, followed by the locks and security segments.
A substantial portion of the planned investment will focus on leveraging the group’s considerable land assets in the Mumbai Metropolitan Region, particularly in Vikhroli. Holkar underscored that the Vikhroli development is a key area of focus for the coming years, with an emphasis on optimizing the value of its Mumbai real estate.
Godrej Group Realignment
Holkar also discussed the recent restructuring of the Godrej Group, which divided its assets between GEG and Godrej Industries Group (GIG). She mentioned that the process, particularly concerning the Godrej brand, was complex but guided by the principle of fairness. The goal was to minimize disruption to ongoing operations and align with the interests of both the family and stakeholders.
The reorganization resulted in the division of the group between Jamshyd Godrej and Smitha Crishna Godrej, with Holkar representing the interests of the latter. She emphasized that the businesses had been managed independently for years, so the realignment was more of an evolution than a radical change.
Commitment to Sustainability and Growth
GEG has already invested Rs 2,600 crore in its Khalapur and Shirwal plants in Maharashtra, focusing on engineering enhancements and front-end development. Holkar reiterated the group’s commitment to developing Interio as an aspirational lifestyle brand, improving customer experience through updated retail formats and a stronger omnichannel presence.
Aligning with India’s target of achieving net-zero carbon emissions by 2070, GEG is also prioritizing sustainable practices in construction and the built environment to reduce greenhouse gas emissions.
The group’s strategy of targeted investments and innovation across its various business sectors is aimed at strengthening its market position and supporting its long-term growth objectives.
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By Proptechbuzz
By Ravi Kumar
