Business · Companies · 2 hrs ago
TVS restructuring left Lakshmi Venu with a smaller business than her brother
A series of changes to the TVS group left Lakshmi Venu leading a smaller business than her brother Sudarshan.
In 2022, Lakshmi led Sundaram-Clayton, an auto parts maker that also owned 50.26% of TVS Motor, while Sudarshan became head of the automaker.
The restructuring moved that stake to TVS Holdings, which Sudarshan now heads, while Sundaram-Clayton kept its manufacturing operations and substantial debt.
The changes came before the family signed a March 2024 agreement covering control, competition and use of the TVS brand.
Since then, the businesses have followed sharply different paths: TVS Motor’s revenue rose 76% over three years, while Sundaram-Clayton’s revenue was broadly unchanged.
Sundaram-Clayton reported a profit for the year ended March, but that included a large one-time gain from a Chennai land sale; without it, the company would have reported a loss.
Mallika Srinivasan says no financial settlement has been reached and that Lakshmi has the same rights as Sudarshan, challenging her husband’s claim that family matters are settled.
A series of TVS group restructuring decisions shifted TVS Motor’s stake out of the auto parts business Lakshmi Venu led.
Her brother, Sudarshan Venu, now heads the holding company that controls TVS Motor and the group’s lending businesses.
The changes left Sundaram-Clayton with its manufacturing business and substantial debt, while TVS Motor came under TVS Holdings.
TVS Motor’s revenue rose 76% over three years, while Sundaram-Clayton’s revenue was broadly unchanged.
The restructuring preceded a March 2024 family agreement on control, non-compete obligations and brand use.
- Who
- Lakshmi Venu and her brother, Sudarshan Venu, lead businesses in the TVS group.
- What
- Restructuring shifted TVS Motor’s stake out of Sundaram-Clayton, leaving the siblings with different businesses and growth trajectories.
- When
- The changes began in 2022 and took place before a family memorandum of understanding in March 2024.
- Where
- The businesses are part of the TVS group in India.
- Why
- The restructuring’s effect on the siblings’ business inheritances is at the heart of a family dispute; the sources do not state a definitive reason for the changes.
Venu Srinivasan
Mallika Srinivasan
Family settlement
Venu Srinivasan
Venu Srinivasan has asserted that all family matters have been settled.
Mallika Srinivasan
Mallika Srinivasan says no financial settlement has been reached within the family.
Daughter’s rights
Venu Srinivasan
Venu Srinivasan’s position on Lakshmi Venu’s rights is not stated.
Mallika Srinivasan
Mallika Srinivasan says Lakshmi has the same rights as her brother, Sudarshan.
Sudarshan Venu became managing director of TVS Motor, and Lakshmi Venu became managing director of Sundaram-Clayton.
The family signed a memorandum of understanding on control, non-compete obligations and brand usage.
- TVS Motor stake held by Sundaram-Clayton
- 50.26%
- Sundaram-Clayton revenue
- ₹2,026 crore in the year ended March
- Sundaram-Clayton profit
- ₹252 crore, including a one-time gain of about ₹513 crore
- TVS Motor revenue
- ₹56,069 crore in the year ended March, up 76% over three years
- TVS Motor profit
- ₹3,693 crore in the year ended March
1 source
What people are saying
The valuable asset from the old Sundaram-Clayton, which is the share in TVS Motor, was taken away. So, it was never really a fair split.