TVS Holdings, the parent company of TVS Motors, has initiated the succession plan to hand over the keys of the automobile business to the next generation. Sudarshan Venu, son of Venu Srinivasan, has become the Significant Beneficial Owner as the ownership transfer process begins.
Sudarshan Venu becomes Significant Beneficial Owner
Sudarshan Venu, the 36-year-old next-generation scion, is currently serving as the Managing Director of TVS Motors. TVS Holdings has a 50.26 percent ownership stake in TVS Motors.
Venu Srinivasan is currently the chairman and non-executive director of TVS Holdings. He also holds the office of the Chairman of TVS Credit Services. According to a filing to the Registrar of Companies, both Sudarshan and Venu are now ‘persons acting in concert and significant beneficial owners’.
For months, the TVS group promoters have been making plans for a smooth succession to avoid any conflict in the family.
What’s the future for TAFE?
Earlier in March, Tractor and Farm Equipment Ltd (TAFE) announced that Lakshmi Venu had been appointed as the company’s vice chairman. Lakshmi Venu is the daughter of Venu Srinivasan and Mallika Srinivasan, Chairman and Managing Director of TAFE.
Additionally, in March, Srinivasan and his family signed a memorandum of understanding (MoU) to avoid any conflict and competition among the family members. As per the memorandum, Sudarshan Venu and Venu Srinivashan agreed that he would not use the TVS trademark and some other trademarks in other businesses like aluminium manufacturing.
The memorandum also states that he would not enter into other businesses like agricultural equipment manufacturing for a specific period of time, which could create competition between the two groups.
Similarly, Lakshmi Venu and Mallika Srinivasan also agreed not to use the TVS trademark and some other trademarks in their other businesses. Further, they will also not enter into business like two-wheeler and three-wheeler automobiles for a certain period.