This would give each family in the group full ownership of the companies they manage without cross-ownership.
Members of the $ 8.5 billion TVS family decided Thursday to restructure ownership of several companies, a move that would scrap the group company but does not involve the payment of brand royalties to family members or its holding companies. This would give each family in the group full ownership of the companies they manage without cross-ownership.
The family members who head the group’s publicly traded companies, such as TVS Motor Company Ltd, TVS Srichakra Ltd, Wheels India Ltd and others, in an identical letter, have hinted to the respective company secretaries about the decision to the family and these, in turn, were presented to the actions. exchanges.
“Over time, several members of the TVS Family felt that ownership of shares in various companies / businesses should be aligned and synchronized with the management of the respective companies, as is currently being done, according to the regulatory document.
“With this objective in mind, the members of the TVS family agreed today to subscribe to the terms of a family arrangement memorandum to record the terms of the family arrangement thus agreed,” the document added.
According to reports, this family agreement will mean that the existing management of the group’s businesses will continue to be managed by the same family members. This means that Suresh Krishna and his daughters will administer Sundaram Fasteners. TVS Motors will be managed by Venu Srinivasan and his family along with TVS Credit, Sundaram Clayton and a few other companies. R Dinesh will manage TVS Logistics and TVS Automobile Solutions, among others, while TVS Srichakra will be managed by Shobhana Ramachandran.
The appointed senior family members will now deliberate on how best to further implement this arrangement.
According to the TVS family, the new arrangement will not affect the management and operation of the companies in any way, and they expect to continue their activity in the normal course without affecting any of the interested parties.
“Furthermore, the terms of the family arrangement do not contemplate any royalty payments or brand use by the operating companies / companies to the members of the TVS family / their holding companies,” the document states.
The current shareholders of TVS Holding Companies consist primarily of the third and fourth generation of the original founder, TV Sundaram Iyengar. The different businesses / entities of the TVS Group have traditionally been managed by members of the different branches of the family.
The TVS family has been involved, for over a century, in a wide range of businesses through various entities in which the branches of the TVS family have invested in TV Sundram Iyengar and Sons Private Ltd, Sundaram Industries Private Ltd and Southern Roadways. Private Ltd – Collectively known as TVS Holding Companies.
Over the decades, the TVS family has expanded its businesses and the TVS Group has grown into a large business conglomerate with interests in various businesses operating in diversified fields, including the manufacturing of automotive and two-wheelers, dealerships automotive, automotive parts distribution, finance. services, logistics services, electronics, textiles and needles.