TVS Group's Venu Srinivasan family advances leadership succession plan

Lakshmi Venu of the TVS Group’s Venu Srinivasan family took charge as vice chairperson of Tractors and Farm Equipment Ltd (Tafe), one of the world’s largest tractor manufacturers, on Tuesday. Sources say the move is part of an ongoing restructuring of the business among family members, ensuring a clear succession plan.

 

Venu Srinivasan had announced in March 2024 that his family members—wife Mallika Srinivasan, son Sudarshan Venu and daughter Lakshmi Venu—had executed a memorandum of understanding (MoU) to avoid competition among themselves.

 

Further to this MoU, it is now evident that a clear separation of ownership and management of businesses is happening between the children of Srinivasan and Mallika.

 

Sudarshan will continue to lead TVS Holdings and its subsidiary companies TVS Motor, TVS Credit Services, Home Credit India and TVS Emerald. Lakshmi will succeed Mallika Srinivasan in TAFE and lead Sundaram Clayton Ltd.

 

Under the MoU, Sudarshan has agreed that he and persons controlled by him shall not use trademarks (including TVS) in relation to certain businesses, including the design, manufacturing and supply of aluminium and die castings/machine castings for original equipment manufacturers and the after-market.

 

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

 

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

 

Sudarshan, 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.