Speaking at the inaugural edition of NDTV Profit Conclave, which was held in Mumbai on 18 February, Nadir Godrej, chairperson, Godrej Industries Group, discussed the group’s strategic decisions, expansion into real estate, and leveraging the brand’s legacy of trust.

The session was moderated by Vishnu Som, group executive editor and principal anchor, NDTV.

Kicking off the session, Godrej acknowledged past challenges but underscored that their successes far outweigh setbacks. “We have had a couple of failures in the past but most of our businesses have thrived,” he admitted.

He explained that Godrej has a careful and strategic approach that ensures every new venture leverages the strength of the brand. This philosophy played a key role in entering the real estate sector, where trust is a critical factor in consumer decisions.

“Trust levels in real estate were low, and we knew our brand could make a difference,” he noted.

The same principle guided the launch of Godrej Capital, a non-banking financial corporation (NBFC) designed to uphold sustainability and ethical business values.

A practical approach to restructuring

When the decision was made last year to split the group into large hubs, Godrej Enterprises (GEG) and Godrej Industries (GIG), Godrej expressed that it was both a strategic and practical move. 

He said, "While having everything under one umbrella had its advantages, the reality was that the management structures of the two parts of the group had been different for nearly 70 years." 

Godrej went on to say that despite the common ownership, the distinct management styles made the transition relatively smooth. “It wasn’t a difficult decision,” Godrej explained, emphasising that fairness was a key priority. 

"Both sides approached the process with deliberation and transparency, ensuring that the restructuring was carried out efficiently and amicably," he noted. 

With a commitment to environmental and social sustainability, Godrej sees itself as a responsible player in today’s economic landscape that collaborates with businesses that share its vision for the future.

The business of trust

For over a century, the Godrej Group has been synonymous with trust, innovation, and responsible business practices. But beyond its legacy of consumer goods, real estate, and financial services, Godrej has been making strategic moves to align its business with the values that define its brand. From sustainability to inclusivity, the group has been actively shaping industries while staying true to its core beliefs.

"Most of our businesses are quite simple," Godrej shared. "We are very careful to enter industries where our brand is useful." 

This philosophy led the group into real estate, an industry where trust is paramount. He added, "Trust levels were low, and we knew that a strong, reliable brand would be invaluable hence the expansion to a new sector."

The same rationale drove the establishment of Godrej Capital, the company’s foray into non-banking financial services. "Here again, trust is crucial, and our values of environmental and social sustainability add significant value in today’s market,” he added. 

A legacy of values

At its core, Godrej’s approach to business is deeply rooted in values. "Sustainability, both social and environmental, is non-negotiable for us," Godrej emphasises. "We believe growth without inclusion is meaningless. The way climate change is unfolding, if we don’t act now, we won’t just lose businesses, we’ll lose the planet."

For Godrej, sustainability isn't just a corporate responsibility, it’s business logic. "If we want to save businesses, we need to save the planet," the executive states. "It’s disheartening to see some countries step back from climate commitments, but the reality is clear: adapting to climate change costs more than preventing it."

Recent climate events like the Los Angeles wildfires and Pakistan’s devastating floods underscore this urgency.

"The cost of prevention is always lower than the cost of cure, whether it’s disease or climate change. Yet, we continue to act reactively rather than proactively, it’s completely illogical," he said.

He added that honesty, employee welfare, and customer-first thinking are also central to Godrej’s ethos. "If one truly puts customers ahead, they must put employees ahead of them, because they are the ones who take care of customers," he explained.

Godrej expressed, "When a company considers values as social capital, it makes absolute business sense."

Modernising without losing heritage

Despite being a legacy brand, Godrej is not resistant to change. "It’s not a challenge to modernise while maintaining core values," Godrej asserted. "The real challenge is adapting to the increasing speed of change. We must evolve faster than before, but always within the framework of our principles."

He then went on to share how Godrej's diversification strategy is intentional. "The brand must make sense for the new business, and vice versa,” Godrej stated. 

Expansion into real estate and financial services, for instance, was a natural progression, leveraging the brand’s reputation for reliability. "Most of our diversification decisions were made to maximise the value of the Godrej name."

Innovative approaches to sustainability

Godrej has been pioneering solutions to environmental challenges. "We’re seven times water-positive and have significantly reduced our carbon emissions. Our green energy mix includes solar, biomass, and cogeneration systems,” he shared. 

The company is also exploring sustainable agriculture solutions, particularly in reducing Scope 3 emissions. He voiced, "We use a lot of soybean meal and are actively working on ways to repurpose soybean stubble to lower emissions."

Collaboration is key to solving larger environmental challenges, particularly in agriculture. "India’s small farms lose out on economies of scale, but in today’s network economy, we can create efficiencies by linking farmers together,” Godrej stated. 

Through artificial intelligence and farmer cooperatives, Godrej aims to turn fragmented agricultural efforts into a unified, sustainable system.

Inclusion

As India moves towards 100 years of independence in 2047, inclusion will be a major driver of progress. "You can’t take full advantage of a demographic dividend while only utilising half the population," Godrej pointed out, emphasising the need to bring more women into the workforce.

But inclusion goes beyond gender. Godrej expressed, "Caste, religion, disability—every community that has been left out must be brought in. Specific training and reskilling efforts can help maximise India’s human capital potential. 

On import tariffs

Addressing the impact of US trade policies, Godrej acknowledged that while his company does export to the country, it does not constitute a significant portion of their business.

However, he recognised the broader implications for Indian enterprises.

"It will certainly impact other Indian businesses," he noted, reflecting on the unpredictability of trade decisions under US President Donald Trump. "Sometimes it looks like Trump talks a lot and then quickly withdraws. He’s delayed his tariffs on Canada and Mexico—of course, only for a month. Let’s see what happens at the end of the month. He will probably look for some other quick transaction and then let them get off the hook. I hope that’s what’s going to happen."

Despite this uncertainty, Godrej emphasised the need for India to respond strategically rather than reactively. "We also need to stand up to this kind of tactics and find good strategies," he asserted. India, he pointed out, has been proactive in its trade policies, adjusting duties in response to shifting global dynamics.

"I know that India has been preemptive," he said. "I believe that the import duty on Bourbon was reduced from 150% to 50%, and for other countries, it was reduced to 100%. But for America, we made a special exemption and brought it down to 50%."

Mentorship, leadership, and the Godrej legacy

Reflecting on mentorship and leadership positions, Godrej said, “At our group, we have always believed in both mentoring and reverse mentoring, it should be a two-way exchange where both parties benefit. The younger generation brings insights into the future, making this approach the best way forward. Additionally, while our group’s leadership has historically been associated with the Godrej name, we strongly believe in fostering a balanced partnership between family members and professional leaders. Today, few of us hold CEO positions, but we continue to play overarching roles, ensuring the group's legacy and future growth.”

Preparing for the future

"The skills we learn today will be irrelevant very quickly," Godrej warns. "Our education system needs to shift away from rote learning and focus on adaptability. In a world driven by technology, continuous learning and upskilling will be essential for both individuals and businesses."

As Godrej continues to evolve, its guiding principle remains clear: build businesses where trust, sustainability, and inclusivity aren’t just marketing buzzwords but fundamental to success. 

"When companies view values as assets rather than costs, the business case for doing good becomes undeniable,” Godrej concluded.