Companies

Family members of TVS Group reach ‘brand pact’

Our Bureau. Chennai | Updated on March 29, 2021

Venu Srinivasan, Chairman, Sundaram-Clayton Group

TVS Group family members arrive at a pact to share brandname

On the heels of re-aligning the ownership of group companies in line with the management, family members of the TVS Group have taken the next step of drawing up a formal Brand Agreement on the use, adoption, and registration of trademarks such as TVS, Sundaram and Sundram as also several other trademarks. Some Group members have now decided to execute the ‘deed of adherence’ to the Brand Agreement.

Listed companies TVS Motor Company, Sundram Fasteners, and TVS Srichakra, said in a communication to stock exchanges on Wednesday that after their respective board meetings, they had decided to execute the ‘deed of adherence’ to the Brand Agreement.

It is gathered that Group companies have resolved amicably the use of trademarks. The companies that have signed the agreement will continue to use the wordmarks/trademarks they have been using.

“Pursuant to the Memorandum of Family Arrangement dated December 10, 2020, and further to the meeting held on January 27, 2021 of the senior nominated members of the TVS family, and in order to preserve harmony and peace amongst the various Family Groups, the members of the TVS family entered into the Brand Agreement, to record their understanding in respect of the use, adoption, registration of the Word Marks and/or marks incorporating any of the Word Marks by the members of the TVS family, on the terms and conditions as detailed in the Brand Agreement,” the companies said in their communique.

Analysts said that such agreements are critical because the group is large and has multiple brands and trademarks, use of which needs to be well defined. Otherwise, conflicts are bound to rise as the family members move away from a centralised management structure. Some also wondered why the communication to the stock exchange is silent on whether a family member can start a business that competes with that of another member and what rules will then apply on use of the TVS and other brands.

Published on March 24, 2021

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