TVS Group implements family arrangement

TVS family members, who had announced plans on December 10 last year to align ownership with management of the various group companies, on Wednesday agreed on the methodology to execute it.

In a notification to the stock exchange, various listed companies of the group detailed how they will carry out the process — a composite scheme of amalgamation and arrangement that will be filed before the Chennai Bench of National Company Law Tribunal (NCLT).

As a first step, the two holding companies Sundaram Industries Pvt Ltd (SIPL) and Southern Roadways Pvt Ltd (SRW) will be amalgamated into TVS Sundaram Iyengar & Sons Pvt Ltd (TVSS), another holding company. At the same time, businesses managed by various family members will be demerged into companies that are majority-owned by respective families.

For instance, the two-wheeler auto parts and dies casting business will be demerged into TVS Investment & Holdings Pvt Ltd, a company where Venu Srinivasan and his immediate family have a majority stake. This includes 63.76 per cent of Sundaram Clayton’s (holding company of TVS Motor Company).