"Hope to build a Rs 2 lakh cr AUM business": Pirojsha Godrej as group enters wealth management

Speaking exclusively to ANI on Tuesday on the sidelines of the group's press conference in Mumbai, Chairman Designate of Godrej Industries Group Pirojsha Godrej revealed a massive blueprint for the group's financial services vertical, aiming for a combined AUM of Rs 2 lakh crore over the next five years.

"These are two separate AUM goals," Godrej clarified. "One for Godrej Capital, our lending business, which is a hundred thousand crore over the next... Coincidentally, we also have a hundred thousand crore aspirational business [for wealth]. So overall in financial services over the next five years, we hope to build a two-hundred-thousand-crore AUM business."

Operating alongside the lending arm, Godrej Capital, the new asset-light wealth business will primarily cater to high-net-worth clients with investible assets of Rs 2 crore and above. This includes entrepreneurs, new-age creators, multigenerational families, and NRIs.

Addressing the group's phased expansion strategy, Pirojsha Godrej noted that the business will follow a calibrated geographic footprint rather than a sudden pan-India push.

"First off, we will start with four markets which we are launching with today. Then by the end of this year, we expect to take that to 8, and over a 5-year period, we expect to take it to 35 to 50 markets," he said.

This calculated entry reflects the group's broader corporate philosophy. "We quite intentionally felt that we did not want to think of financial services as something we wanted to enter into all various types of financial services business at one time," Godrej noted.

"We thought it made most sense to focus business by business... and then move on to the next category."

While the lending arm, Godrej Capital, has achieved an AUM of approximately Rs 27,500 crore, Godrej stated that talking about an initial public offering (IPO) for the wealth arm is "premature."

The initial focus remains entirely on demonstrating long-term value creation and building customer trust under the established Godrej brand.

To win over clients in a crowded Rs 2 crore-plus market dominated by private banks, Godrej intends to deploy a unique moat: a hybrid model combining high-calibre relationship teams with modern tech offerings.

Addressing current global macroeconomic headwinds, FII outflows, and market corrections, Godrej remained highly optimistic, stating that historical market dislocations and uncertainties are "almost always the best time to be investing" for long-term compounding value. (ANI)