InvestorQ : Can you tell me about the restructuring that is progress at the TVS Group?
vaishnavi mhatre made post

Can you tell me about the restructuring that is progress at the TVS Group?

vidhya Laxmi answered.
2 years ago

Let me clarify that this is not a restructuring of the group businesses. It is only a restructuring of the ownership of various groups under the TVS banner. Businesses will continue as it is and only the ownership structure will get more streamlined. Here are some of the details that have been disclosed by the company.

The $8.5 billion Chennai-based TVS group embarked on a change of its ownership structure. The group was floated by TV Sundaram Iyengar in 1911 and the current crop of owners are the fourth generation scions of the original promoter. The group has a business value of $8.5 billion with TVS Motors being the biggest value creator.

TVS will now get rid of the holding company concept altogether. Each family group will get total ownership and control over the segment of the business they manage and there will be no cross holdings. Each of the four groups, explained in detail in the next paragraph, can use the TVS brand on a royalty-free basis perpetually.

In terms of the new holding structure, there will be 4 groups. Suresh Krishna and his daughters will get Sundaram Fasteners. Venu Srinivasan gets TVS Motors, TVS Credit and Sundaram Clayton. R Dinesh gets full control over TVS Logistics and TVS Automotive solutions while Shobana Ramachandran gets TVS Srichakra. Cross holdings will be scrapped.