From mint · Varun Sood,Satish John · · 2m
TVS family dispute: Lakshmi with smaller business
TVS family restructuring left Lakshmi Venu with auto parts business that struggles to grow while brother Sudarshan controls the larger motor company.
In brief
TVS family restructuring left Lakshmi Venu with auto parts business that struggles to grow while brother Sudarshan controls the larger motor company. TVS family restructuring in 2024 left Lakshmi Venu with auto parts business that has struggled to grow while her brother Sudarshan Venu heads the larger TVS Motor…
TVS family dispute
Lakshmi Venu, 42, now heads auto parts business that struggles to grow while brother Sudarshan Venu, 37, heads TVS Motor, India's third-largest two-wheeler maker.
“The valuable asset from the old Sundaram-Clayton, which is the share in TVS Motor, was taken away”
Restructuring timeline
Sundaram-Clayton owned 50.26% of TVS Motor before 2024 restructuring, but TVS stake moved to holding company controlled by Sudarshan Venu.
Financial divergence
Sundaram-Clayton revenue stayed at ₹2,026 crore while TVS Motor revenue rose 76% to ₹56,069 crore in the year ended March 2024.
Profit contrast
Sundaram-Clayton profit of ₹252 crore included one-time gain of ₹513 crore from land sale, excluding which it would have reported a loss of ₹186 crore.
Family dispute escalation
Venu Srinivasan's wife Mallika challenges husband's assertion that all family matters have been settled, claiming daughter Lakshmi has same rights as brother Sudarshan.
2022-2024 changes
In May 2022, siblings took top jobs at connected companies; by August 2023, TVS Holdings retained TVS Motor stake while Sundaram-Clayton kept manufacturing operations.
Brand-sharing agreement
Family signed March 2024 MoU setting management control with Sudarshan Venu controlling TVS Holdings and Lakshmi Venu controlling Sundaram-Clayton.
Ownership structure
Venu Srinivasan controls 46.83% of Sundaram-Clayton and 66.55% of TVS Holdings as sole trustee of VS Trust.
Financial impact
Sundaram-Clayton carried ₹1,417 crore debt by end of March 2024, while TVS Motor's profit more than doubled to ₹3,693 crore.
Expert analysis
Sebi requires promoters to disclose agreements that impact company control within two working days, but Sundaram-Clayton did not receive proceeds from TVS Motor share sale.
Business outcome
The restructuring left Lakshmi Venu with smaller business while Sudarshan Venu controls the larger TVS Motor business, creating unequal inheritances.
“The valuable asset from the old Sundaram-Clayton, which is the share in TVS Motor, was taken away”
Family conflict
Mallika Srinivasan claims no financial settlement has been reached within the family, asserting daughter Lakshmi has same rights as brother Sudarshan.
Unanswered questions
Why did Lakshmi Venu agree to business changes before the control agreement was signed?
Current status
TVS Holdings retains TVS Motor stake while Sundaram-Clayton keeps manufacturing operations, with debt rising to ₹1,417 crore by end of March 2024.
The main idea
TVS family restructuring in 2024 left Lakshmi Venu with auto parts business that has struggled to grow while her brother Sudarshan Venu heads the larger TVS Motor business.
