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by Rajen Kumar

No Escaping Social Media

Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...

Special Reports

Apr 2012

EMRC, Brussels Associates with SME WORLD as its New Media Partner

EMRC has promoted business partnerships with the developing world and has organised dozens of business forums in key decision-making cities, such as Amsterdam, Rome,...

Focus

Godrej Trust: An example to emulate

Jul 2009

Godrej Empire has a unique feature not many seem to know. Godrej Trust, the philanthropic arm of the empire, has a stake to the tune of 25% in each of the company owned by the Godrej Empire. The Trust receives funds by way of dividend from companies and carries out its activities befittingly. Environment care and protections is the thrust area in which the Godrej Trust works.

This was revealed by Godrej Group Chairman Adi Godrej addressing Young Entrepreneurs Society (YES) members in Mumbai recently. “As an MBA from America in the year 1959 when management was only taught in America, I joined the family business in 1963 when the company turnover was Rs. 10 crores”, informed Godrej

Speaking at length on perpetuating family run businesses, Godrej stressed that one has to make adjustments in working relation to run a family owned business and requires deep understanding and trust. “This not only makes the organization healthy but it keeps continuity in business as when you run a family business it is not the ability, efficiency and intellectual part which is seen but it is the understanding, consensus and trust which keeps family business going and growing.”

Mr. Godrej discussed the business process, strategy and governance within the Godrej Group, a 112-year old organization having the fourth generation making inroads into the organization.

The Group has many lines of business envisaging Soaps, furniture, refrigerators, heavy machinery, beverages, insecticides, etc with an annual turnover of Rs. 10,000 crores and three companies listed. However, the family still controls 80% of the shareholding in all companies and has strong presence in 13 countries all over the world and manufacturing facilities almost in every state in the country. Godrej informed the young entrepreneurs that his company has a policy of management being separated from ownership where Managing Director or CEO is always an outsider who manages the company independently and added that “the company adopts several management tools like creating a three year rotating plan, induction of family members in business at junior levels and rating their performance from time to time. The company has compulsory 10-day training every year for each executive with an option for enhanced training. Apart from this, the family council meets twice every year which includes all members of the family who are over 16 years of age and can contribute to business by way of creative ideas to enhance business and development.”

He also stated that the unique feature about the Godrej empire is that 25% of each company is owned by Godrej Trust which is also occupied with philanthropic activities mainly environment care and protection. The Trust receives funds by way of dividend from companies and carries out its activities in a generous way.

The meeting was very well attended by Young entrepreneurs, Consul Generals and eminent personalities including Anirudh Dhoot, Director, Videocon, Rupa Naik, Executive Director, All India Association of Industries.

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