Venu Srinivasan, Chairperson of TVS Holdings Ltd (formerly Sundaram-Clayton Ltd) and Chairman Emeritus of TVS Motor Company, has announced that his family members have executed a memorandum of understanding (MoU) to avoid competition among themselves. The MoU covers the usage of TVS brands and other associated areas too.

“My family members (Mallika Srinivasan, Lakshmi Venu, and Sudarshan Venu) and I have executed a memorandum of understanding dated 20 March 2024, and its execution was completed on 21 March 2024,” Venu Srinivasan of TVS Holdings, the holding company for investments in TVS Motor Company, said in a filing to stock exchanges.

Venu Srinivasan’s wife Mallika Srinivasan is the Chairman and Managing Director of a leading tractor firm Tractors and Farm Equipment Ltd (TAFE), which is a part of the Amalgamations Group.

His daughter Lakshmi Venu is the Director of TVS Motor Company Ltd, a leading two-wheeler maker, and Deputy Managing Director of TAFE Motors and Tractors Ltd, a wholly-owned subsidiary of TAFE. 

His son Sudarshan Venu is the Managing Director of TVS Motor Company Ltd.

Also read: TVS Motor announces its entry into France

Under the MoU, Sudarshan Venu has agreed that he and persons controlled by him shall not use certain trademarks (including TVS) in relation to certain businesses, including design, manufacturing and supply of aluminium and magnesium die castings/ machined castings for OEMs and the after-market

Further, he also agreed not to compete for a defined period, including in the business of agricultural machinery such as tractors and self-propelled farm equipment.

Mallika Srinivasan and Lakshmi Venu have agreed that they and the people controlled by them will not use certain trademarks (including TVS) in relation to certain businesses, including two-wheeler and three-wheeler vehicles, financial services, and real estate business, and they have also agreed to not to engage in certain businesses, including two-wheeler, and three-wheeler vehicles, parts and/or accessories for any such vehicles, for a defined period.

Also read: TVS Motor reiterates commitment to invest ₹5,000 crore on future technologies

The company is not a party to the MoU signed by the family members. Also, the MoU doesn’t in any way impact the business of TVS Holdings Ltd adversely, and its ability to continue its business as currently conducted today is not impacted, it added.

It may be recalled that the members of the TVS family (including the parties) had completed a family settlement based on a Memorandum of Family Agreement (MFA) dated December 10, 2020.

The MFA recorded the oral understanding reached between the members of the TVS Family, along with other agreements and understandings amongst the various family groups of the larger TVS family and people controlled by them (past, present and future).

The MFA settlement took effect on February 4, 2022. The Parties have arrived at a further understanding amongst themselves in addition to the MFA, including, regarding usage of the TVS brands.