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 Sundaram Iyengar & Sons, Sundaram Industries, and Southern Roadways - collectively referred to as the TVS Holding Companies.
The $8.5-billion TVS group on Thursday decided to go for restructuring 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 has agreed, according to the new terms.
For example, Suresh Krishna and his daughters will manage Sundaram Fasteners.
Venu Srinivasan and his family will manage TVS Motor, TVS Credit, Sundaram Clayton, and some other companies.
R Dinesh will manage TVS Logistics and TVS Automobile Solutions, among other firms.
And, Shobhana Ramachandran will manage TVS Srichakra.
The TVS brand will be allotted to each family group for their use in their lines of business on a perpetual, royalty-free basis.
The existing management of the listed and unlisted companies in the 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 consists businesses started by T V Sundaram Iyengar.
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 Sundaram Iyengar & Sons, Sundaram Industries, and Southern Roadways (collectively referred to as the TVS Holding Companies).
The present shareholders of the TVS Holding Companies primarily consist the third and fourth generations of T V Sundaram Iyengar.
The various businesses of the group have been traditionally managed by members of the different branches of the TVS family.
Sources said that over time the family felt that the ownership of shares in various companies 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 has a workforce of more than 39,000 employees.
The group has over 50 companies.
These operate in fields that range from two-wheeler and automotive component manufacturing to automotive dealerships, finance, and electronics.
Sundaram Iyengar & Sons was set up in 1911.
Photograph: PTI Photo
