TVS Motor Company Ltd. Chairman and MD Venu Srinivasan on Thursday said members of the TVS family have agreed to subscribe to the terms of a memorandum of family arrangement to align and synchronise the ownership of shares in various group companies.
In a letter posted on BSE, Srinivasan said the senior members of the TVS family would deliberate to implement the family arrangement.
The present shareholders of the TVS holding companies primarily consist of the third and fourth generations of founder TV Sundaram Iyengar.
Currently, the various businesses/entities of the group have been traditionally managed by members of the different branches of the TVS family.
"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," Srinivasan said.
Keeping this objective in mind, the members of the TVS family have on Thursday 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, he added.
Pursuant to the family arrangement, the existing management of the various listed and unlisted companies/ businesses in the TVS Group will continue to be managed by the same family members.
"This arrangement shall not affect the management and functioning of the company (TVS Motor Company) in any way, and we expect to continue business in the ordinary course without impacting any of the stakeholders," Srinivasan noted.
Furthermore, the terms of the family arrangement do not envisage any royalty or brand usage payments from the operating businesses/companies to the TVS family members/ their holding companies, Srinivasan said.
"TVS Motor Company is not a party to this arrangement. Therefore, we do not expect this arrangement to affect the management and functioning of the company in any way," he added.
The TVS Family has been engaged, for more than a century, in a diverse range of businesses through various entities in which the branches of the TVS family have invested in through TV Sundram Iyengar & Sons Pvt. Ltd., Sundaram Industries Pvt. Ltd. and Southern Roadways Pvt. Ltd. (collectively referred to as the TVS Holding Companies).
Over the decades, the TVS family has expanded their businesses and the TVS Group has grown into a large business conglomerate with interests in several businesses, including two-wheeler and automotive component manufacturing, automotive dealerships, distribution of automotive parts, financial services, logistics services, electronics and textiles.
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