The $8.5-billion, Chennai-primarily based TVS Group has embarked on a restructuring exercising whereby every loved ones group would get full ownership of the firms they handle and the holding enterprise structure would be abolished.
According to a stock exchange filing by the group on Thursday, the new arrangement will not have an effect on the management and functioning of the enterprise in any way, and small business would continue without having impacting any of the stakeholders.
Under the new structure, although every branch of the loved ones would turn out to be independent and handle the enterprises they are operating, the terms of the loved ones arrangement do not envisage any royalty or brand usage payments from the operating enterprises/firms to the TVS loved ones members/their holding firms, the filing mentioned.
“With the passage of time, various members of the TVS family felt that the ownership of shares in various companies/businesses should align and synchronise with the management of the respective companies, as is currently being done. Keeping this objective in mind, the members of the TVS family have today agreed to subscribe to the terms of a memorandum of family arrangement in order to record the terms of the family arrangement so agreed upon. Senior nominated members of the TVS family shall now deliberate on how best to further implement this arrangement,” the filing mentioned.
With this restructuring, Venu Srinivasan and Sudarshan Venu will handle TVS Motor, TVS Credit, and Sundaram Clayton and some other firms.
The TVS loved ones has been engaged, for more than a century, in a diverse variety of enterprises by means of several entities in which the branches of the TVS loved ones have invested in or by means of Television Sundram Iyengar & Sons Private Limited, Sundaram Industries Private Limited and Southern Roadways Private Limited collectively known as as TVS holding firms.
The TVS Group comprises more than 50 firms and employs a total workforce of close to 39,000 staff.
Over the decades, the TVS loved ones has expanded their enterprises and the TVS Group has grown into a significant small business conglomerate with interests in a number of enterprises operating in diversified fields, like two-wheeler and automotive element manufacturing, automotive dealerships, distribution of automotive components, monetary services, logistics services, electronics, textiles and needles.
The existing shareholders of the TVS holding firms mainly consist of the third and fourth generations of the original founder, Television Sundaram Iyengar. The several enterprises and entities of the TVS Group have been traditionally managed by members of the unique branches of the TVS loved ones.