The $ 8.5 billion TVS group decided Thursday to opt for a restructuring by giving each family group full ownership of the companies they run and eliminating the parent company. There will be no cross-holdings, the family agreed, in accordance with the new terms.
For example, Suresh Krishna and his daughters will administer Sundaram Fasteners. Venu Srinivasan and his family will manage TVS Motor, TVS Credit, Sundaram Clayton and a few 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 assigned to each family group for use in their business lines on a permanent and royalty-free basis.
The existing management of the group’s listed and unlisted companies will continue. Nominated members of the TVS family will now deliberate on the next steps to further implement this arrangement.
The TVS group is made up of companies started by TV Sundaram Iyengar. The TVS family has been involved, for more than a century, in a wide range of businesses through various entities in which the branches of the TVS family have invested in TV Sundaram Iyengar & Sons, Sundaram Industries and Southern Roadways (collectively referred to as such as TVS holding companies).
The current shareholders of TVS Holding Companies consist mainly of the third and fourth generation TV Sundaram Iyengar. The group’s various businesses have traditionally been managed by members of the different branches of the TVS family.
The sources said that over time the family considered that the ownership of the shares of several companies should be aligned and synchronized with the management of the respective companies and, therefore, the family memorandum of arrangement has been signed.
The TVS Group has a workforce of more than 39,000 employees. The group has more than 50 companies. These operate in fields ranging from automotive component and two-wheeler manufacturing to auto dealerships, finance, and electronics.
TV Sundaram Iyengar & Sons was founded in 1911.
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