Gopal Srinivasan hands over reins to 2 co-CEOs to manage TBG group
T.E. Raja Simhan
Chennai, Aug. 16 TVS Electronics Ltd has restructured its organisation with its Wholetime Director Mr Gopal Srinivasan handing over the reins to two co-CEOs to jointly manage the Transaction Products and Business (TPB) Group, the highest revenue earner for the company.
Mr Srinivasan was handling the day-to-day operations of the Chennai-based IT peripherals company. He will become chairman or vice chairman of the company. “I am also planning to form a new company in the non-IT space,” he told Business Line.
Mr S. Narendran and Mr M. Somasundram, Senior Vice-President and Vice-President, respectively of the TPB group, will jointly manage the group.
“In the last six months, they were mentored to become CEOs and drive the group to a Rs 500-crore business in the next three years from the present Rs 200-crore,” Mr Srinivasan said.
“The company had flat revenues for the last few quarters. The board was also unhappy with the performance. We need young and a stronger team to boost the growth. The company has also migrated from a pure dot matrix printer (DMP) manufacturer to Transaction Automation Products (such as dot matrix printers and point of sales terminals and printers),” he said.
Other than this, the company has two businesses – one for contract manufacturing and TVS-E Servicetec, a separate company, for undertaking post-sale service contracts. The contract manufacturing division was sold off last year to a Finnish company, for Rs 41 crore.
The organisation restructure comes at a time when the company will get Rs 66 crore in cash from its holding company, TVS Investments, by way of share transfer in its group companies. As part of a restructuring, the company will transfer its shares held in TVS Finance and Services, TVS-E Servicetec Ltd and Sravanaa Properties Ltd to its holding company.
TVS Electronics will spend the amount on new products in PoS and printers, increase the presence of PoS terminals and devices, and research and development; go-to-market in development of PoS network and enter new geographies – beginning with the neighbouring countries, Mr Narendran said.