TVS to merge 2 arms with self

The move is expected to strengthen TVS Investments' balance sheet

A year after TVS Group said it would restructure Sundaram Clayton Ltd, the holding company of TVS Motor, TVS family scion Gopal Srinivasan is planning to merge two TVS Investments subsidiaries —  TVS Capital Funds Ltd and TVS-E Servicetec — with itself. Company officials said it was expected the move would strengthen its balance sheet.

TVS Investments and its subsidiaries have filed a company petition with the Madras High Court in this regard. TVS Investments’ net worth is about Rs 100 crore.

According to reports, Sundaram Clayton saw a round of restructuring last year, earmarking separate businesses for TVS brothers Venu Srinivasan (who heads TVS Motor) and Gopal Srinivasan (who heads TVS Investments and TVS Electronics, among other firms). Venu Srinivasan is the chairman and managing director of Sundaram Clayton.

TVS Capital Funds is the asset management company of TVS Shriram Growth Fund, with assets under management of about Rs 1,150 crore and net worth of  about Rs 7 crore.

With the merger of TVS Capital Funds with TVS Investments, the promoters were planning to create a strong asset management company for the group, enabling expansion into different fund verticals such as structured finance, wealth management advisory, etc, said a company source.

STRATEGIC CHANGE

* TVS Capital Funds is the asset management company of TVS Shriram Growth Fund

* With the merger of TVS Capital Funds with TVS Investments, the promoters plan to create a strong asset management company