CHENNAI: The family members of Venu Srinivasan, Chairman Emeritus and Managing Director of TVS Motor Company Limited have entered into a non-compete agreement over the use of TVS brand across different business segments including two-wheeler, auto after-market and tractors business.
The memorandum of understanding (MoU) was executed between Venu Srinivasan, his wife and business leader Mallika Srinivasan, and their children Lakshmi Venu, and Sudarshan Venu on March 21.
Sudarshan Venu, Managing Director of TVS Motor has agreed not to use TVS trademark, among others, in manufacturing and supply of aluminium and magnesium die castings for original equipment manufacturers (OEMs) and the after-market, TVS Motor said in exchange filings on Saturday.
He has also agreed to not compete in the business of agricultural machinery including tractors, and self-propelled farm equipment, among other things for a defined period.
Mallika Srinivasan and Lakshmi Venu have agreed that they will not use certain trademarks including TVS, in two-wheeler and three-wheeler vehicle business, financial services and real estate, among other businesses.
The parties are part of the promoter, promoter group but the company is not a party to the MOU, the filings noted. “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 said.
Mallika Srinivasan is the Chairman and Managing Director of Chennai-based leading tractor maker Tractor and Farm Equipment Limited (TAFE), part of Amalgamations group. Lakshmi Venu currently serves in the board of TVS Motor Company and also Deputy Managing Director of TAFE Motors and Tractors Limited.
This comes after the family settlement based on a Memorandum of Family Agreement (MFA) between the members of the TVS Family made on December 10, 2020.
TVS family members, including the parties had completed a family settlement recording the oral understanding reached between the members of the TVS Family, along with other agreements and understandings among various family groups of the larger TVS family and persons controlled by them (past, present and future).
The family settlement took effect from February 4, 2022. The parties have arrived at a further understanding among themselves in addition to the MFA, including, regarding usage of the TVS brands, a letter written by Venu Srinivasan said.
The large TVS family members in December 2020 agreed for restructuring of the group business with various demergers and amalgamations managed by different members of the family.
Agreement to avoid trademark tussles
The members of the TVS family had executed and completed a family settlement based on a Memorandum of Family Agreement dated 10 December 2020 recording the oral understanding reached between the members of the TVS Family, along with other agreements and understandings executed pursuant and further thereto amongst the various family groups of the larger TVS family.