A succession plan is underway at the $4-billion TVS Group to pave the way for next generation leaders and prepare them to take over the mantle of the family business.
TVS Motor, India's third-largest two-wheeler manufacturer by sales, on Friday appointed Sudarshan Venu, 22, son of company chairman and managing director Venu Srinivasan, as additional director of Sundaram-Clayton Limited (SCL), a holding company of TVS Motor.
The group also announced the appointment chairman & managing director of Sundaram Brake Linings Ltd K Mahesh’s son Krishna Mahesh, as the chief operating officer with effect from September 1.
Industry observers and people close to the Group said: “TVS is the best example of family leaders taking the lead and running their businesses with the support of professionals.”
The group has been grooming professional managers from within the family while retaining the services of professionals. Youngsters have always been inducted at a junior level and were made to work their way up.
Sudarshan is an honors graduate from Jerome Fisher Program in Management and Technology, University of Pennsylvania, US. He obtained a bachelor degree in science in mechanical engineering from the School of Engineering and Bachelor of Science in Economics, both from the Wharton School, University of Pennsylvania.
He recently completed his masters in International Technology Management from the Warwick Manufacturing Group, an academic department at the University of Warwick in the United Kingdom. While pursuing his masters, he had undergone hands-on training in the die casting division of SCL and TVS. “Given his academic background and exposure to the industry, it is considered that he will be a good asset to the company,” said a company release.
Company sources said no specific area of assignment was shortlisted for Sudarshan. However, he would be assigned different departments and areas to identify his core strengths. “His aptitude and personal interests too would come into play when the company would assess his performance and assign him a particular responsibility.” a source said.
Sudarshan Venu's sister, Lakshmi, 28, had to spend three years as a management trainee in Sundaram Auto Components Ltd, a subsidiary of SCL, before she was appointed director of SCL in September 2010 and inducted into the board as a member. She is now the director, strategy, export market, in the United States.
So was the case with Sundram Fasteners CMD Suresh Krishna’s daughters Arathi and Arundathi. They are now at the helm of the company to drive future business initiatives. Currently Arathi serves as the joint managing director, while Arundathi is a whole-time director of the company.
For long, Shobana Ramachandran had been steering the Madurai-based TVS Srichakra as the managing director. She is the daughter of R Ramachandran, who was the chairman of TVS Sundaram Iyengar & Sons.
In June, 35-year-old Harsha Viji, son of S Viji, chairman, Sundaram Finance Ltd, was appointed as the director of Sundaram Finance — a Chennai-based non-banking finance company. An MBA from Ann Arbor, Harsha Viji has been the deputy managing director of Sundaram Asset Management Company Ltd and has been the director of Professional Management Consultants Ltd and Flometallic India Ltd.
Experts say, 2011 will be crucial for the Group with the top five – Suresh Krishna, Viji Santhanam, Ram Santhanam, Ramesh and Mahesh – who are at the helm of affairs, reaching their sixties. It would be interesting to see how the younger generation looks at the holding company — TV Sundaram Iyengar & Sons.
