The $8.5-billion TVS Group on Thursday decided to restructure itself by giving each family group complete ownership of businesses they manage and scrapping the holding company. There won’t be any cross holdings, the family agreed in new terms.
For example, Suresh Krishna and his daughters will manage Sundram Fasteners, Venu Srinivasan and his family will manage TVS Motor, TVS Credit, Sundaram Clayton and some other companies, R Dinesh, will management TVS Logistics, TVS Automobile solutions and others, Shobhana Ramachandran will manage TVS Srichakra.
The existing management of the listed and unlisted companies/ businesses in the TVS Group will continue. The nominated members of the TVS family will now deliberate on the steps to be taken to further implement this arrangement.
The TVS Group essentially consists of businesses started by the original founder, T.V. Sundaram Iyengar and his lineal descendants constitute the TVS Family.
The TVS family has been engaged, for more than a century, in a diverse range of businesses through various entities in which the branches of the TVS Family have invested in or through T V Sundram Iyengar & Sons Private Limited, Sundaram Industries Private Limited and Southern Roadways Private Limited (collectively referred to as the TVS Holding Companies).
The TVS Group has interests in several businesses operating in diversified fields. The present shareholders of the TVS Holding Companies primarily consist of the third and fourth generations of the original founder, T.V. Sundaram Iyengar. The various businesses/ entities of the TVS Group have been traditionally managed by members of the different branches of the TVS family.
Sources said the TVS family felt that the ownership of shares in various companies/ businesses should align and synchronise with the management of the respective companies and therefore, the memorandum of family arrangement has been entered into.
The TVS Group employs a total workforce of close to over 39,000 employees . Charting a steady growth path of expansion and diversification, it currently comprises around over 50 companies.
These operate in diverse fields that range from two-wheeler and automotive component manufacturing to automotive dealerships, finance and electronics. Uniting these multiple businesses is a common ethos of quality, customer service and social responsibility.
The group comprises auto component makers including Sundram Fasteners, Brakes India, Lucas TVS , bike maker TVS Motor Company and financial services under Sundaram Finance. The third generation cousins manage businesses ranging from two wheeler manufacture to logistics services to automotive components. In many of these companies, including TVS Motor, Sundaram Fastners, the family’s fourth generation runs the businesses.