TVS, TAFE Succession Lines Get Clearer

The ownership and management of TVS Holdings and Tractors and Farm Equipment Ltd (TAFE) is being aligned among the family members, according to sources.

It is now evident that a clear separation of ownership and management of businesses is happening among the children of Venu Srinvasan and his wife Mallika Srinivasan.

Sudarshan Venu, Managing Director of TVS Holdings Ltd, already leads TVS Motor Company as its Managing Director. He is also the Chairman of TVS Credit Services, the Non-Banking Financial Services company of the Group.

Sudarshan’s sister Lakshmi Venu, daughter of Venu Srinivasan, Chairman Emeritus of TVS Motor Company, and Mallika Srinivasan, Chairman and Managing Director of Tractors and Farm Equipment Ltd (TAFE), has been named the Vice Chairman of TAFE. She is currently a Director at TAFE.

According to sources, Sudarshan will continue to lead TVS Holdings and it subsidiary companies, TVS Motor, TVS Credit Services, and Home Credit India, along with TVS Emerald. Lakshmi will succeed Malika Srinivasan in TAFE and lead Sundaram Clayton Ltd.

MoU

In March 2024, Venu Srinivasan had announced that his family members had executed a memorandum of understanding (MoU) to avoid competition among themselves.

Under the MoU, Sudarshan Venu had agreed that he and persons controlled by him shall not use certain trademarks (including TVS) in relation to certain businesses, including design, manufacturing and supply of aluminium and magnesium die castings/ machined castings for OEMs and the after-market.

Further, he also agreed not to compete for a defined period in the business of agricultural machinery such as tractors and self-propelled farm equipment.

Mallika Srinivasan and Lakshmi Venu have agreed that they and the people controlled by them will not use certain trademarks (including TVS) in relation to certain businesses, including two-wheeler and three-wheeler vehicles, financial services, and real estate business, and they have also agreed to not to engage in certain businesses, including two-wheeler, and three-wheeler vehicles, parts and/or accessories for any such vehicles, for a defined period.