TVS Group set to announce restructuring of holding company | Economic Times

Chennai: The $8 billion TVS group, among the largest auto parts makers in the country, may be close to finalising a family settlement in shareholding structure of the holding company TV Sundram Iyengar & Sons (TVSIS), as discussions within the members to simplify the interlocking ownership patterns have reached a finality.While there is no dispute within the family and the settlement is completely amicable, the idea is to hammer out a structure that will prevent potential future disputes among next gen family members regarding management and ownership of group companies. TVSIS has stakes in multiple group companies, owned by third generation, all cousins. The senior most, Suresh Krishna, chairman of Sundram Fasteners is the chairman of the holding company. These discussions have been going on for around 4-5 years. A TVSIS spokesman refused to comment on the matter. It is learnt that JM Financial is handling the settlement. The contours of the settlement is not immediately known. The restructuring will allow each family within the group to separate their share in group companies and own them independently. The idea is to simplify the holdings on the basis of the ownership in group companies. For example, TVSIS holds stake in the older lot of companies like Sundram Fasteners, Sundaram Clayton, Lucas TVS, Wheels India among others. Take Sundaram Clayton, controlled by Venu Srinivasan. TVSIS holds nearly 19% stake while another group company Southern Roadways owns nearly 15% stake. Sundaram Clayton for its part owns 57.4% in TVS Motor, the group’s only B2C business. Similarly TVSIS owns just over 25% in Sundram Fasteners, (controlled by Suresh Krishna), while Southern Railways owns just over 24%. In Wheels India, controlled by Ram Santhanam and his brother Viji Santhanam, the TVSIS stake is 20.4% while Southern Railways owns just over 9%.Other companies including TVS Tyres and India Nippon Electricals are run by third generation family members.