In a significant move aimed at maintaining harmony within the TVS family and ensuring business integrity, family members of the Chairman Emeritus of TVS Motor Company, Venu Srinivasan, have recently signed a non-compete pact and agreed upon restrictions regarding certain trademarks. The decision, disclosed by the company on Friday, underscores a proactive step towards avoiding conflicts and ensuring clarity in business ventures.
The Memorandum of Understanding (MoU), inked on March 21, 2024, involves key figures within the TVS family business landscape. Venu Srinivasan, Chairman and Managing Director of TAFE – Tractors and Farm Equipment Ltd, alongside Mallika Srinivasan, Director of TVS Motor Co, and Dr. Lakshmi Venu, Deputy Managing Director of TAFE Motors and Tractors Ltd, along with Sudarshan Venu, Managing Director of TVS Motor Co, are pivotal signatories to this agreement.
Under the terms of the MoU, Sudarshan Venu has committed to refraining from utilizing specific trademarks, notably including ‘TVS’, within designated business domains such as the design, manufacturing, and supply of aluminium and magnesium die castings or machined castings for Original Equipment Manufacturers (OEMs) and the after-market. Additionally, he has pledged to abstain from competing in sectors like agricultural machinery, including tractors, and self-propelled farm equipment for a stipulated duration.
Conversely, Mallika Srinivasan and Dr. Lakshmi Venu have similarly undertaken not to employ specified trademarks, including ‘TVS’, within particular business spheres. These include two-wheeler and three-wheeler vehicles, financial services, and real estate ventures. They, too, have committed to refraining from involvement in certain businesses, such as the production of two-wheeler and three-wheeler vehicles, parts, or accessories, for an agreed-upon timeframe.
Importantly, the company assures stakeholders that this agreement does not adversely affect its ongoing business operations. The ability to conduct business remains unaffected, reassuring continuity and stability within the organization.
Venu Srinivasan elucidated the purpose behind this agreement in a letter addressed to the company secretary, highlighting its origins in a family settlement executed by members of the TVS family. The Memorandum of Family Agreement (MFA) dated December 10, 2020, laid the groundwork for this understanding. This comprehensive settlement, effective as of February 4, 2022, encapsulated various oral agreements and understandings among family members and entities associated with the broader TVS family.
Building upon the MFA, the involved parties, including Venu Srinivasan, Mallika Srinivasan, Dr. Lakshmi Venu, and Sudarshan Venu, have iterated further understandings regarding the usage of TVS brands. These collective efforts aim to fortify familial and business ties while upholding the legacy and reputation of the esteemed TVS Motor Company.
In essence, this agreement signifies a concerted effort towards fostering cohesion and clarity within the TVS family, ensuring a harmonious coexistence of individual pursuits while collectively advancing the interests of the renowned business conglomerate.
