Godrej Group has emerged as one of the largest landlords in India’s most expensive city, Mumbai. Besides being the most expensive city in India, Mumbai is ranked 136th globally in the 2024 Cost of Living survey. According to the 2015 survey by the Slum Rehabilitation Authority (SRA), the Godrej Group owns over 3400 acres, including 3000 acres alone in Vikhroli on the Eastern Express Highway. Out of this, while 1,750 acres are covered with mangroves, another 300 acres have been encroached upon.
Apart from Godrej Group, F.E. Dinshaw Trust, the AH Wadia Trust, Pratapsingh Vallabhdas Surji’s family, and Jeejeebhoy Ardeshir Trust are some of the other major landholders in Mumbai. In addition to these private entities, Government entities such as Mumbai Port Trust, National Textiles Corporation, Maharashtra government, Central Government, Central Railway, and Western Railway are the owners of a significant portion of Mumbai’s land. There are several reasons that have contributed to making Godrej Group the biggest landowner in the poshest Indian city.
Historical factors, strategic location, participation in schemes designed by the SDA, and continued expansion, among others, are the major contributors.
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— Godrej Enterprises Group (@GodrejEnt_group) August 15, 2020Historical Reasons
The traditional feudalistic system prevalent in India that granted landlords right over villages continued the British rule. These landlords used to collect taxes from the villagers and deposited a major share to the British coffers as taxes. This system later continued under Portuguese and British rule. While large landholding was granted to wealthy Portuguese families during their rule, the British Raj transferred the ownership to wealthy Konkani Muslims and Marathi Hindus. In the course of time, the Parsi community, which gained a significant amount of wealth from their trade in opium and cotton, began to own lands disproportionately. Godrej group is one such prominent Parsi family commanding great influence in the field of business since 1897.
Strategic Location
Here again, Godrej company’s land purchase in a strategic location has helped it to gain a significant land share in present. Godrej Group’s land purchase in Vikhroli in the early 20th century has proven to be a game changer. Vikhroli, in the suburb of Mumbai, was then a relatively undeveloped area that was primarily categorized as a rural area.
Most of the land was agricultural land and the land was characterized by some scattered settlements. It was marked by a sparse population, and vast stretches of the land were covered by mangrove forests and Suryanagar Hill. The land rose to prominence in recent times as its proximity to the proliferating city of Mumbai made it a fertile site for future development and expansion.
SDA Scheme Participation
Godrej Company’s aggressive participation in the Slum Development Authority (SDA) Scheme is another crucial factor that has contributed to making Godrej Company one of the biggest landholders in Mumbai. This slum development scheme is aimed at the rehabilitation of slum dwellers and takes the help of private entities to reach its desired objective. The scheme ensures that plot owners and real estate developers relocate and rehabilitate slum dwellers free of cost in a portion of their land.
In return for this rehabilitation, the Government rewards them with additional building rights in the remaining free portion of the land. They can build luxury properties on the newly recovered land gained from freeing the remaining portion. They are entitled to sell these properties at market rate and earn profits from the sales. Regular enthusiastic participation in these schemes over the years has enabled the Godrej company to gain sufficient land share in the city.
Continued Expansion
During the Second World War, Pirojsha Godrej bought 3,000 acres in Mumbai from the British for Rs 30 lakh. Subsequently he purchased about 400 acres more, making the total land acquisition to 3400 acres. The Godrej Group has expanded continuously and has relied on a number of ways to achieve its goal. Strategic partnerships with other real estate developers and investors to expand their landholding and utilise optimally the existing land. In addition to that, joint ventures also helped them to achieve desired objectives by allowing them to mutually benefit from their joint expertise, resources and skill sharing.
The Godrej Group
Godrej Company was founded in 1897 by Ardeshir Godrej and Pirojsha Burjorji Godrej as a Mumbai-based company. The Godrej Company boasts of having roots in India’s Independence and Swadeshi movement and presently has emerged as a conglomerate which has made a name for itself in a wide range of industries it has ventured into. These include consumer goods, real estate, industrial engineering, appliances, agriculture, space missions, furniture, and security. The wide range of consumer goods includes furniture, security systems, safes, typewriters, word processors, rocket launchers, cosmetics, and detergents, among others.
The company seems to live up to its motto, which is “shared value”, and as a result, it focuses extensively on curating sustainable products and promoting values that are customer-friendly. The 127-year-old business conglomerate has delivered excellent quality products over the years and has earned an untainted reputation. Godrej Aerospace, established in 1985, added another feather to its crown by successfully developing precision components for the Indian Space Research Organization (ISRO). Its recent success includes the development of powering engines for many of India’s successful space missions, including Mangalyaan and Chandrayaan.
FAQ
1. How did the Godrej Group become one of Mumbai’s largest landowners?
The Godrej Group’s strategic land purchases, particularly in Vikhroli, coupled with their active participation in the Slum Rehabilitation Authority (SRA) scheme, have significantly contributed to their substantial land holdings. Historical factors, such as the British Raj’s land distribution system and the Parsi community’s influence, also played a role.
2. What is the significance of the Slum Rehabilitation Authority (SRA) scheme for the Godrej Group?
The SRA scheme has been crucial for the Godrej Group’s expansion. By participating in this scheme, they’ve been able to acquire additional land rights in exchange for rehabilitating slum dwellers. This strategy has allowed them to develop prime real estate in Mumbai.
3. What are the key factors that have contributed to the Godrej Group’s success as a conglomerate?
The Godrej Group’s success can be attributed to several factors, including a strong emphasis on quality, innovation, and sustainability. Their diverse range of products and services, coupled with their commitment to social responsibility, has solidified their position as a leading Indian conglomerate.
4. How has the Godrej Group leveraged its land holdings to contribute to Mumbai’s development?
The Godrej Group has utilized its extensive land holdings to develop various projects, including residential, commercial, and industrial spaces. These developments have contributed to Mumbai’s economic growth and urban development.
5. Who founded the Godrej Group and when?
Godrej Company was founded in 1897 by Ardeshir Godrej and Pirojsha Burjorji Godrej as a Mumbai-based company. The Godrej Company boasts of having roots in India’s Independence and Swadeshi movement and presently has emerged as a conglomerate which has made a name for itself in a wide range of industries it has ventured into.
