In a first on‑record telephone interview, Mallika Srinivasan, chairperson and managing director of Tractors and Farm Equipment Ltd (TAFE), rejected her husband Venu Srinivasan’s statement that family matters surrounding TVS Motor Co. have been settled. She asserted that no economic settlement has been reached and that her daughter Lakshmi Venu’s rights are equal to those of her brother Sudarshan Venu.
Background of the dispute
The disagreement centres on a memorandum of understanding (MoU) signed in March 2024. Mallika clarified that the MoU addresses only trademark usage, brand rights and non‑compete obligations. “Economic settlement and ownership are not within the scope of the MoU,” she said, emphasizing that the document does not resolve questions of asset ownership.
She added that management and ownership are distinct concepts that should not be conflated. “It would be pertinent to point out here that management and ownership are fundamentally distinct and should not be conflated,” Mallika said.
According to a Mint report cited on Friday, Lakshmi Venu is seeking a “fair settlement” with her younger brother Sudarshan. Mallika and Lakshmi issued a separate statement on Monday, rejecting the suggestion that all family assets belong exclusively to one individual and can be distributed unilaterally.
Ownership structure and financial stakes
The ownership question is complicated by a network of trusts and holding companies that channel the family’s stakes in the TVS group. Venu Srinivasan serves as the sole trustee of VS Trust, which holds 46.83 % of Sundaram‑Clayton Ltd and 66.55 % of TVS Holdings Ltd.
The Srinivasan family collectively owns 59.09 % of Sundaram‑Clayton. VS Trust contributes 46.83 %, while a family branch holds 6.87 % through TSF Investments Ltd. Venu Srinivasan personally owns 4.38 %, Mallika holds 0.26 % and Lakshmi 0.75 %.
TVS Holdings Ltd controls 56 % of TVS Motor. The family’s total holding in TVS Holdings stands at 74.45 %: VS Trust with 66.55 %, Srinivasan Trust (trustee VS Trustee Pvt. Ltd) with 3.07 % and a family branch with 3.74 % via TSF Investments. Mallika and Lakshmi own 0.29 % and 0.82 % respectively.
When asked whether Lakshmi benefits from VS Trust on an equal footing with her brother, Mallika did not give a direct answer but reiterated that her daughter’s rights are equal. She said Lakshmi was surprised by the actual ownership details and that repeated requests for transparency have been met with silence or refusal.
Both siblings hold senior positions in the group. Lakshmi, 43, is managing director of the listed die‑casting company Sundaram‑Clayton, which reported revenue of ₹2,025.6 crore and profit of ₹334.27 crore. Sudarshan, 37, serves as chairman and managing director of TVS Motor, which posted revenue of ₹56,069 crore and profit of ₹3,693 crore. TVS Motor’s market capitalization stood at ₹1.87 trillion at the close of Monday, while Sundaram‑Clayton’s market cap was ₹2,650 crore.
Mallika dismissed any implication that her and Lakshmi’s shareholdings in TAFE should diminish their claims on TVS assets. “References to TAFE in the context of the VS family assets are not relevant,” she said, adding that attempts to link TAFE to a VS family settlement are misleading.
Broader context and other family battles
The TVS dispute unfolds against a backdrop of other high‑profile succession battles in India. The article notes ongoing contests involving the Sona Group, the Kalyani family, Godfrey Phillips, and the Kirloskar family, each featuring legal or mediated attempts to resolve intra‑family asset divisions.
Venu Srinivasan, who also serves as vice‑chairman of Tata Trusts, is currently involved in a separate power struggle over the leadership of Tata Sons. On 17 September, Tata Trusts chairman Noel Tata opposed the re‑appointment of N. Chandrasekaran as Tata Sons chairman for a third term, but Venu’s decisive vote helped Chandrasekaran retain the position.
In her interview, Mallika emphasized a moral and legal view that a daughter and a son should be treated equally. “As a mother, my view is that a daughter and a son are equal in every respect from a moral as well as legal perspective,” she said. She called for a transparent process that includes full participation of all family members and addresses each member’s perspectives, priorities and aspirations.
She concluded by stating that equality must be the cornerstone of any fair settlement, without specifying the exact share of TVS Holdings or TVS Motor that she believes should be allocated to her daughter.
The dispute remains unresolved, with Venu Srinivasan yet to respond to an email request for comment. Mallika’s remarks signal a willingness to pursue a transparent and equitable resolution, while the underlying ownership structure and the March 2024 MoU continue to shape the contours of the family’s internal negotiations.
Be First to Comment