Lakshmi Venu and her mother Mallika Srinivasan are clear about one thing: there is no ownership settlement in place at the TVS Group. “There is no economic settlement that has been reached within the Venu Srinivasan family: no discussion, no transparent valuation, no mutual consent to arrive at any such settlement,” they jointly tell CNBC-TV18.
Lakshmi Venu, who was appointed Vice Chairman of the tractor manufacturing firm Tractors and Farm Equipment (TAFE) and the Managing Director of the group’s automotive die-cast components manufacturing firm Sundaram Clayton, says she was startled to learn about her father Venu Srinivasan and brother Sudarshan Venu being classified as significant beneficial owners of TVS Holdings through newspaper reports. These reports cited a 2025 filing with the Registrar of Companies (RoC). This took place through the VS Trust, in which Venu Srinivasan is a trustee, becoming the dominant shareholder in TVS Holdings through two inter-se transfers of shares. These transfers took the Trust’s stake in TVS Holdings to 66.55%. TVS Holdings, in turn, owns 50.26% of TVS Motor. Sudarshan Venu is its MD and also serves as MD of subsidiary TVS Motor.
Lakshmi says that since these reports came out 18 months ago, she has been making concerted efforts to seek a dialogue with her father on the issues around succession at the group, but with no success. She also says that while there was a family memorandum of understanding (MoU) signed by all four family members in 2024, this MoU did not cover a settlement or a split of the assets and businesses. “It is misleading and inaccurate to conflate the 2024 TVS Family Settlement with a Venu Srinivasan Family Settlement,” she says, adding, “There is no agreement dividing economic interests which has been concluded within the Venu Srinivasan family.” Both Lakshmi and Mallika say they do not agree with the suggestion that all family assets belong exclusively to one person who is free to distribute them unilaterally.
This was in response to an earlier statement by Venu Srinivasan to media houses referencing the 2024 MoU, saying, “The businesses and assets were mine, and I had the full liberty to deal with them as I deemed fit, keeping in mind the best interests of the family members as well as the businesses. I have always believed that the next generation should be given full ownership and control while they are young and have the energy and ideas to build their enterprises. It is with this intent that I carried out a separation between Lakshmi and Sudarshan.” The statement goes on to say, “The separation was on a fair basis at the time it was done, keeping several factors in mind, including the fact that Mallika Srinivasan, who controls TAFE, had made clear her intention to pass on ownership and control of TAFE to Lakshmi, who is already involved in its management as its Vice Chairman.” His statement also said that this split was accepted, implemented and concluded after taking the family’s views into account.
The 2024 MoU, which was disclosed to exchanges, said that while Sudarshan agreed not to use the TVS brand in the die-castings business and not to compete in the tractors and farm equipment space for a defined period, Mallika Srinivasan and Lakshmi Venu agreed not to use the brand in, or enter, the two-wheeler, three-wheeler, financial services and real estate sectors for a defined period.
“The 2024 family MoU is merely a limited-term agreement for brand use and non-compete clauses, and cannot be represented as an economic settlement,” Lakshmi argues.
Mallika and Lakshmi say that just because she has management responsibilities at TAFE and Sundaram Clayton does not mean she cannot stake her claim to economic ownership of the group’s other businesses. “Management responsibilities must not be confused with economic ownership; nor does an allocation of leadership and management constitute a division of family assets,” she avers.
Her stand is that any references by her father or brother to her getting management responsibilities at TAFE, or her mother holding shares in TAFE, being construed as part of a so-called settlement are misconceived.
“TAFE is part of the amalgamation group, separate from the TVS Group. Mallika Srinivasan is only a shareholder in TAFE, and TAFE has no bearing on an economic settlement within the Venu Srinivasan family. It is misleading to present Mallika’s custodial role at TAFE as evidence of equitable distribution of economic interests,” both Mallika and Lakshmi say.
Both Lakshmi and Mallika reiterate that they are keen on an equitable and fair arrangement in any succession plan. “Arrangements made unilaterally cannot be regarded as fair or consensual. Any equitable settlement must recognise the legitimate economic interests of all parties and must be based on a process of transparent valuation and a negotiated agreement,” they tell CNBC-TV18. They remain firm in their stand: the issue of fair and rightful economic ownership remains unresolved, and an early, fair, amicable resolution is in the best interests of the family, its businesses and all its stakeholders.
They say they are certain the resolution to this split within the family should come through one route: constructive dialogue carried out with dignity, grace and equity.
As Mallika puts it, “As a mother, to me both Lakshmi and Sudarshan are equal. My endeavour will be to ensure equity and a constructive dialogue.”