The listed holding company, Godrej Industries Ltd, last week incorporated a new subsidiary, Godrej Investment Ltd, which will serve as the umbrella entity for all its financial services operations, according to an executive familiar with the plans.
Speaking on the condition of anonymity, the executive said the move will maintain a clean holding structure, simplify borrowing and bringing in equity partners, and make it easier to carve these businesses out into a separate company when mature.
Currently, the group’s lending businesses operate under Godrej Capital Ltd, a direct subsidiary of Godrej Industries. Its two key businesses are Godrej Housing Finance Ltd and Godrej Finance Ltd, a non-banking financial company (NBFC).
The two businesses are fairly young, being incorporated in November 2020 and March 2022, respectively. The combined assets under management (AUM) of the two businesses under Godrej Capital were ₹16,930 crore as of 31 March 2025, as per a July 2025 note from credit rating agency Icra Ltd. The businesses are scaling at a rapid pace though, having more than tripled the AUM in just two years compared to ₹5,124 crore in March 2023.
Under the restructuring, Godrej Capital will move under Godrej Investment, becoming a step-down subsidiary of Godrej Industries. The group chose not to make Godrej Capital the umbrella entity because the heavily regulated sector often requires separate companies for businesses such as insurance and stockbroking, the executive said.
“The intent appears to create a financial services Hold Co (holding company) on the lines of some other groups, possibly because financial services is a completely different and highly regulated business, which merits standalone focus, and also possibly as an initial step towards value unlocking,” said Ketan Dalal, managing director at Katalyst Advisors, a boutique advisory firm specializing in group holding structures.
“Even within financial services, there could be multiple businesses such as lending (NBFC), insurance (either life, general or both) or mutual fund business, and while one is not aware of the rationale for the restructuring, there have been instances in past of delinking financial services business such as Demerger of financial services from Aditya Birla Nuvo and Grasim to create what is Aditya Birla Capital Ltd today,” Dalal said.
Godrej Industries had first disclosed in August last year that it was looking to diversify its financial services business, and its board had approved the transfer of Godrej Capital to a new subsidiary company. While the group has not disclosed which new businesses it will enter, a credit rating report from Icra dated 17 October 2025 noted that the company looks to venture into wealth management.
Incorporation documents of Godrej Investment indicate its objectives include buying, selling, and dealing in stocks, debt instruments, Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), and Alternative Investment Funds.
A January 2025 report from Deloitte estimated that wealth management services market in India will almost double between FY24 and FY29 with AUM growing from $1.1 trillion to $2.3 trillion over this period.
The restructuring will not affect existing employees, who will remain on the rolls of their current companies. Only Pirojsha Godrej, executive vice-chairperson of the Godrej Industries Group, Manish Shah, managing director of Godrej Capital, and a handful of other senior executives will be a part of Godrej Investment, according to the executive cited above.
Godrej Industries did not respond to Mint’s request for comment.
A similar structure is used by other leading conglomerates, including Bajaj Finserv, Aditya Birla Capital, and Reliance’s Jio Financial Services.
Financial services is a lucrative business for large business houses, with most of the large Indian conglomerates having a financial services arm. Many now derive a significant share of their value from these businesses. Among the largest conglomerate-backed financial services firms by market capitalization are Bajaj Finserv Ltd ( ₹3.2 trillion), Jio Financial Services Ltd ( ₹1.8 trillion), Tata Capital Ltd ( ₹1.5 trillion), and Aditya Birla Capital Ltd ( ₹93,210 crore).
Godrej Industries Group is one of two business groups formed after the split of the nearly 130-year-old conglomerate in 2024. Its listed companies include Godrej Industries Ltd, Godrej Properties Ltd, Godrej Agrovet Ltd, Godrej Consumer Products Ltd, and Astec Lifescience Ltd, with business interests spanning consumer products, chemicals, and real estate. Pirojsha Godrej, 45, is expected to become group chairperson in August 2026.
The other Godrej faction runs Godrej Enterprises Group, which houses unlisted Godrej & Boyce Mfg. Co. Ltd., with businesses across aerospace, aviation, defence, engines and motors, construction, furniture, and software and IT. Nyrika Holkar is projected to take over this group.