Godrej charts out new growth plan; eyes Rs 5 lakh crore market capitalisation by 2031

Mumbai: Godrej Industries Group will target a market capitalisation of ₹5 lakh crore by 2031, marking its first long-term growth plan since the 2024 family split.

The group said it plans to expand from three to five listed companies in the period, with Godrej Capital and its chemicals business as likely listing candidates as a new strategy unfolds under Pirojsha Godrej, who is set to take over in August this year.

The value creation path is expected to avoid aggressive diversification or financial re-rating "as of now", the company said.


"The lion's share will come from the existing listed businesses," Pirojsha Godrej, chairperson-designate of the group told ET, adding that while unlisted businesses would grow faster, "in terms of absolute value creation, the listed businesses will be the key contributors."

The group said it is targeting over 15% annual sales growth, more than 20% earnings growth and return on equity of over 18% across businesses. "If we're able to do those three things, we think the market cap will be a logical outcome," Godrej said, indicating that the valuation ambition is tied more to operating performance than assumptions of market re-rating.

"We think if we're able to deliver this, that should happen," he added on potential re-rating.

As part of its roadmap, the group also signalled potential new listings, with Godrej Capital and its chemicals business emerging as frontrunners. "Capital is certainly one of the two, the second is most likely chemicals," he said.

However, despite a six-year non-compete agreement following the family split, the group is not pursuing entry into new sectors. "Nothing of that kind has been decided at the moment, " Godrej said.