TVS succession battle breaks out as Venu Srinivasan's children clash over wealth split

A major succession battle has broken out within the family of TVS Motor boss Venu Srinivasan, with his children on opposite sides of a dispute over the division of the family's multibillion-dollar industrial empire.

The rift pits Venu Srinivasan and his son, Sudarshan, against his wife, the industrialist Mallika Srinivasan, and their daughter, Lakshmi. At the heart of the fight is whether the siblings' management of different family businesses also dictates who owns the underlying wealth.

Sudarshan currently leads the flagship TVS Motor Company, a two- and three-wheeler giant with a market capitalisation of ₹1.83 lakh crore. Lakshmi runs Sundaram-Clayton, a components and die-casting business. The gap between the siblings' domains has widened dramatically in recent years, with TVS Motor's market value surging nearly fourfold over the last three years. Sundaram-Clayton's market value is placed between ₹2,431 crore and ₹24,000 crore, depending on differing financial assessments.

The dispute over the 2024 family MoU

The family is divided over the interpretation of a memorandum of understanding signed on 21 March 2024.

According to people close to Venu and Sudarshan, this agreement formalised a final division of assets. Under their reading, Lakshmi was to receive Sundaram-Clayton and eventual control of Tractors and Farm Equipment Ltd (TAFE) from her mother’s side, while Sudarshan would take TVS Motor.

However, camps aligned with Mallika and Lakshmi strongly reject this version. They argue the 2024 agreement only settled brand usage rights and non-compete terms, rather than financial ownership. An executive close to Lakshmi said no economic settlement or formal valuation has ever been initiated. They maintain that because no final asset split has occurred, both siblings retain equal rights to the family wealth under Hindu succession laws.

The tension escalated in April 2025, when stock exchanges were notified that Sudarshan had become a beneficial owner in TVS Holdings, the parent company controlling TVS Motor. Sources close to Lakshmi say she has repeatedly sought clarification on this transfer but has been met with silence.

Boardroom clashes and trust control

Signs of the internal family struggle first spilled into public view in March at Sundaram-Clayton. Lakshmi, the managing director, objected to the company secretary reporting to the finance chief of the holding company run by her brother.

Though the board initially accepted the secretary's resignation, the decision was reversed 72 hours later. Venu Srinivasan returned from retirement to take over as active chairman, a move that observers say reasserted his authority over his daughter’s management.

While Lakshmi manages Sundaram-Clayton, her personal shareholding is less than 1%. Control of the wider group remains firmly in the hands of Venu Srinivasan, who acts as the sole trustee of the VS Trust, which holds the majority voting blocks in both TVS Holdings and Sundaram-Clayton.

Those close to Venu and Sudarshan argue the current setup is a personal decision by Venu to ensure the longevity of the institutions he built. They point out that neither Mallika nor Lakshmi contributed to a ₹2,000 crore settlement paid to other TVS branches during a wider group split in 2020. That debt, they say, was cleared by Venu and Sudarshan selling a 7% stake in TVS Motor.

With attempts at mediation stalled, both sides have reportedly briefed lawyers in preparation for what could become one of India's most high-profile corporate legal battles.