The TVS Group’s nuclear family pact is path-breaking
Last week, there was a rather unusual news report in some business papers about a new agreement in the family of Venu Srinivasan. As chairperson of TVS Holdings Ltd (formerly Sundaram-Clayton) and chairman emeritus of TVS Motor Company Ltd, he announced that his nuclear family members, comprising himself, his wife Mallika Srinivasan, daughter Lakshmi Venu and son Sudarshan Venu, had executed a memorandum of understanding (MoU), effective 21 March 2024, to avoid competition among themselves with specific reference to the use of the ‘TVS’ brand name, complete with a non-compete pact and more. This is an interesting and unique family business development for three reasons.
One, it is between the father and son on one side and the mother and daughter on the other. Second, while Venu Srinivasan inherited parts of the larger TVS Group in an earlier family settlement, Mallika, who originally hails from another large South Indian business family (of the Amalgamations Group) inherited Tractors and Farm Equipment (TAFE) from her father, A. Sivasailam.
Third, the current family agreement is partly with regard to the use and non-use of the TVS brand, an intangible asset. An accomplished business leader in her own right, Mallika Srinivasan is the chairperson and managing director of the tractor-maker TAFE. Their daughter Lakshmi Venu is director of TVS Motor Company and deputy managing director of TAFE Motors and Tractors Ltd, a wholly-owned subsidiary of TAFE.
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