No economic settlement reached within Venu Srinivasan family, say Lakshmi, Mallika as TVS succession battle breaks

New Delhi: Amid differences within industrialist Venu Srinivasan's family over succession, his daughter Lakshmi Venu and wife Mallika Srinivasan on Monday said the family has not reached an economic settlement.

They said the position that all family assets belong exclusively to one individual, who is free to distribute them unilaterally, is neither agreed nor established.

Also read: Succession battle breaks out at TVS as camps disagree over business division, family MoU


In 2020, the 115-year-old TVS industrial group was divided among the different branches of the family of founder T V Sundaram Iyengar. The settlement involved valuing the assets, dividing them on mutually agreed terms and compensating family members. As part of the arrangement, the Venu Srinivasan family assumed control of key group companies.

Srinivasan is currently the chairman emeritus of TVS Motor Company. According to TVS Holdings' annual report, the family/promoter group holds a 74.45 per cent stake in the company, of which Venu Srinivasan holds 66.55 per cent through VS Trust. TVS Holdings owns 56 per cent of TVS Motor.

Differences emerged within the family after TVS Holdings disclosed that Sudarshan Venu, Venu Srinivasan's son and chairman and managing director of TVS Motor Company, was named a significant beneficial owner (SBO) through trust structures.

Industry sources said Lakshmi Venu, who heads automotive component maker Sundaram-Clayton Ltd, has been seeking discussions and dialogue to reach a fair settlement of the family's wealth.

Mallika is understood to be encouraging family members to sit together and work toward an equitable resolution rather than let the differences escalate.

"No economic settlement has been reached within the Venu Srinivasan family. The larger TVS family partition, agreed in 2020 and implemented subsequently, was undertaken through a process involving the relevant stakeholders," Lakshmi Venu and Mallika Srinivasan said in the statement.

"No comparable process involving transparent valuation, discussion and mutual consent has taken place concerning the economic interests within the Venu Srinivasan family. No agreement dividing these economic interests has been concluded."

The family executed a memorandum of understanding (MoU) in March 2024; however, it covers the use of the TVS brand across different business segments and a non-compete agreement.

According to them, the family has neither agreed that all assets belonged exclusively to one individual nor established that any one person could distribute them unilaterally. They said the allocation of management roles did not divide family assets or replace family members' economic interests.

They also said arrangements related to trademarks, brand usage and non-compete obligations cannot be treated as an economic settlement, as no such settlement had been part of those arrangements.

Mallika Srinivasan also clarified that references to TAFE in this context are misplaced.

"TAFE forms part of the amalgamations Group, a separate family business group in which Mallika Srinivasan is a shareholder. TAFE has no bearing on the economic settlement within the Venu Srinivasan family and should not be conflated with it. Presenting her longstanding association and custodial role with TAFE as evidence of an equitable distribution of economic interests within the Venu Srinivasan family is fundamentally misleading," the statement said.

Lakshmi Venu and Mallika Srinivasan said unilaterally made arrangements cannot be considered fair or consensual, adding that any equitable settlement must recognise all parties' legitimate economic interests through transparent valuation, discussion, and agreement.

"The fundamental issue is not about management positions which have been compensated appropriately and commensurately. It is about the fair recognition of rightful economic ownership, which remains unresolved. We believe that an early, fair and amicable resolution is in the best interests of the family, its businesses and all their stakeholders. We remain committed to resolving these matters through constructive dialogue, with dignity, grace and equity," they added.