TVS chairman emeritus Venu Srinivasan's family members ink non-compete pact

Family members of Chairman Emeritus of TVS Motor Company Venu Srinivasan have entered into an understanding to avoid competition and the usage of certain trademarks, including TVS, in defined business areas, the company said on Friday.

A Memorandum of Understanding (MoU) was executed on March 21, 2024, by Venu Srinivasan, Chairman and Managing Director of TAFE - Tractors and Farm Equipment Ltd Mallika Srinivasan, Director of TVS Motor Co and Deputy Managing Director of TAFE Motors and Tractors Ltd Dr Lakshmi Venu, and Sudarshan Venu, Managing Director of TVS Motor Co.

The company is not a party to this MoU, the TVS Motor Company said in a regulatory filing.

Lakshmi Venu and Sudarshan Venu are children of Venu and Mallika Srinivasan.

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 or machined castings for OEMs and the after-market, the filing said.

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

On the other hand, Mallika Srinivasan and Dr Lakshmi Venu have "agreed that they and persons controlled by them shall not use certain trademarks (including TVS) in relation to certain businesses, including two-wheeler and three-wheeler vehicles, financial services, and real estate business".

They have also agreed to not engage in certain businesses, including two-wheeler, and three-wheeler vehicles, parts and/or accessories for any such vehicles, for a defined period, it added.

This MoU doesn't in any way impact the company's business adversely, and its ability to continue its business as currently conducted today is not impacted, it added.

Sharing the purpose for entering into the agreement in a letter to the company secretary, Venu Srinivasan said it was subsequent to the members of the TVS family executing a family settlement based on a Memorandum of Family Agreement (MFA) dated December 10, 2020.

The MFA had recorded the oral understanding reached between the members of the TVS Family, along with other agreements and understandings executed among the various family groups of the larger TVS family and persons controlled by them. The family settlement took effect on February 4, 2022.

The parties -- Venu Srinivasan, Mallika Srinivasan, Dr Lakshmi Venu and Sudarshan Venu -- have arrived at a further understanding among themselves in addition to the MFA, including regarding the usage of the TVS brands, the letter added.