Embarking on a voyage through the annals of South India’s industrial landscape, one name that resonates with enduring success and innovation is the TVS Group. With a legacy spanning over a century (110+ Years), the TVS Group has not just thrived but has also evolved into a multifaceted conglomerate with businesses in various sectors. From its humble beginnings in the early 1900s to becoming a global force today, the TVS Group’s journey is nothing short of remarkable. In this blog, we will delve into much finer details of the TVS group. (Feature image reference: Tweet by Tamil Nadu Tourism)
Do not miss out on my previous blog with the list of 250+ companies in Tamil Nadu.
Disclaimer
- This blog solely serves to provide insights about the TVS group
- I have made every effort to provide accurate information, but if you spot any discrepancies, please inform me.
- It is important to note that none of the companies mentioned here are endorsed as investment recommendations.
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Journey of the TVS Group
- At the heart of this remarkable legacy is Thirukkurungudi Vengaram Sundaram Iyengar, the visionary founder.
- Born in 1877 in Thirukkurungudi, Tamil Nadu, he was the first-generation founder who laid the foundation for what now is a big business empire.
- He founded the TVS group in 1911, thus the group has rich legacy of 110+ years.
- The first business in 1912 was the rural bus service from Pudukottai to Thanjavur
- The group bags the dealership for General Motors in 1920
- V. Sundaram Iyengar married Lakshmi Ammal, and together they were blessed with five sons and three daughters.
- Sons: TS Doraisamy (1903 – 1946), TS Rajam (1901 – 1982), TS Krishna (1910-1975), TS Santhanam (1912-2005), and TS Srinivasan (1921-1979),
- Daughters: TS Soundram (1904 – 1984), TS Amu Ammal, and TS Ranga Amma
- All the 5 sons joined the family business. Tragically T.S. Doraisamy died, and his remaining 4 sons ran the business as second-generation promoters.
- The TVS group is one of the largest business families in South India.
- Presently the group is run by the third and fourth-generation promoters.
Below is the family tree of the TVS group.
Image source for the second generation family members: https://www.tvsscs.com/history/
Note:The family tree provided above doesn’t encompass all the family members belonging to the 3rd and 4th generation of promoters. The primary emphasis is placed on family members actively involved in the management of the listed entities.
Two incidents from the journey are worth mention and discussed below. (Reference: TVS group has a steady approach to growth)
Innovation 100 years ago!
We saw that the company started its bus service in 1912. The group adopted innovation to ensure buses adhered to their schedules. They implemented a proactive measure: fitting a specially designed vehicle with heavy-duty magnets underneath. These magnets actively collected nails and bits of horseshoes, which were often left along the route by horses and bullocks. This approach significantly reduced the risk of punctures and contributed to the buses running smoothly and punctually.
Selling Cars in the 1930s!
In the early 1930s, selling cars to affluent zamindars in southern Tamil Nadu presented significant challenges. These zamindars had a preference for horse-drawn carts over automobiles. The TVS group adopted an ingenious approach to sell the cars they get from the dealership of General motors. They dispatched a Chevrolet car, complete with a chauffeur, to the residence of a zamindar. The request was simple: use the car for a week. Over the ensuing seven days, the zamindar’s family would gradually become accustomed to the comfort and prestige the car afforded them, often leading to the decision to purchase one.
Furthermore, the company extended invitations to the local elite, inviting them to arrive at the dealership in their traditional horse-drawn carts and depart in a brand-new car. These innovative strategies, resembling precursors of today’s exchange offers and test drives, exemplify the pioneering spirit of the group.
The innovation did not end there. After the sale, the dealership meticulously maintained a record of each car’s performance. They also maintained periodic communication with their customers, ensuring that their needs were met promptly. Any customer complaints were addressed promptly within 24 hours, cementing the company’s commitment to customer satisfaction and service excellence.
Industry Alignment of TVS Group
TVS Group is primarily renowned for its presence in the automotive sector. However, it has strategically diversified into various industries. Let us see the details.
Automotive Business
TVS originally commenced its journey in the automotive business, which now forms the core of the TVS Group. Leading the way in this sector is the TVS Motor Company Limited (TMCL), a prominent manufacturer of motorcycles, scooters, and mopeds in India. TMCL’s supply chain receives essential support from various other automotive ancillary entities within the group, including Sundaram-Clayton Limited, Sundram Fasteners, and TVS Srichakra Limited.
Another beauty of this business is that the group maintains the highest standards of product quality. This enables them to supply auto accessories to both Indian and international automobile manufacturing OEMs.
Financial Services Business
Transitioning to the financial services sector, the TVS Group has firmly established itself through companies like Sundaram Finance Limited and TVS Credit Services Limited. This entry into financial services is not recent; Sundaram Finance, with a legacy dating back to 1954, has earned its reputation as a respected finance company offering diverse financial solutions to both individuals and businesses.
Notably, TVS Credit Services (This is a unlisted entity) specializes in financing two-wheelers, three-wheelers, and other vehicles. It serves as a crucial financial support arm for the automotive division, ensuring that customers have access to the necessary financial resources to buy vehicles.
Furthermore the group has diversified into IT (TVS Electronics) and Textiles as well.
TVS Group Holding Structure
Until a few years ago, the group operated under a different holding pattern, but a recent restructuring has transformed its dynamics. We will briefly discuss the old and present structure
Structure till 2022
The listed and unlisted entities were previously under the ownership of three promoter groups:
- TV Sundaram Iyengar and Sons Private Limited (TVSS) – Ultimate Holding Company
- Southern Roadways Private Limited (SRL), and
- Sundaram Industries Private Limited (SIPL)
SRF and SIPL were subsidiaries of TVSS. These three entities served as the holding companies of all the businesses of the TVS group. With the third and fourth generation now at the helm of these groups, disagreements arose regarding business management and control within the three promoter groups. Eventually, a decision was reached to set aside these disagreements and prioritize business growth, leading to the implementation of a federal structure. The necessary approval from the regulators came in December 2021.
New Structure from 2022
In the current arrangement, each listed entity is held by a privately-owned entity under the promoter’s control.
To illustrate, take Sundram Fasteners as an example. Previously, TVSS (25.37%) and SRL (24.16%) held the company. In the new structure, a new private entity, “TVS Sundram Fasteners Private Limited,” was formed. This entity holds 48.36 of the listed entity, “Sundram Fasteners Limited.” Suresh Krishna and his wife, Usha Krishna, serve as directors of this new private entity, “TVS Sundram Fasteners Private Limited.”
Below is the image of both the old and current structure as taken from the Annual Report.
This restructuring extends to all other listed entities, mirroring a similar pattern of transformation. The below image depicts the holding structure of all the listed entities.
If interested to read more on this restructure do check out this article, “TVS Group Restructured“
Listed Companies of TVS Group
The group has more than 60 companies. We will discuss only about the listed entities. The list below is in no particular order.
India Motor Parts & Accessories Ltd (IMPAL)
Incorporated on July 12th, 1954, the company actively engages in distributing automobile spare parts and accessories. Leveraging its extensive network of over 70 branches, it represents more than 50 manufacturers. Notably, IMPAL stands out as one of the select “All India distributors” of motor parts, specializing in engine group components, brake systems, fasteners, radiators, suspensions, axles, auto electricals, wheels, steering linkages, instrument clusters, and more.
India Nippon Electrical Limited
Incorporated in 1984, the company underwent a transformation into a joint venture in 1986. This transformation occurred between Lucas Indian Service Limited, a wholly-owned subsidiary of Lucas-TVS Limited, and MAHLE Electric Drives Japan Corporation, Japan – a company within the MAHLE Group, Germany. Their joint mission: the manufacturing of Electronic Ignition Systems for two-wheelers, three-wheelers, and portable engines.
Sundaram Finance
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Sundaram Finance Holdings
The company was promoted by TSF Group, by the T S Santhanam family. Sundaram Finance Holdings operates as an investment company, primarily focusing on investments in automotive companies. Noteworthy investments encompass Sundaram Clayton, Wheels India, IMPAL, Brakes India, Turbo Energy, and Axles India. Additionally, through its wholly-owned subsidiary, Sundaram Business Services Limited, and its in-house operations, SF Holdings actively offers outsourced business processing and support services.
Sundaram Brake Linings
Established in 1976, the company manufactures asbestos-free friction materials, including brake linings and disc pads, for automotive, non-automotive, railway, and industrial applications. SBL’s products find extensive use in commercial vehicles, passenger cars, agricultural tractors, railways, and two-wheelers.
Sundaram Fasteners Limited
Established in 1966, Sundaram Fasteners Limited (SFL) currently holds the title of being the largest manufacturer and exporter of high tensile fasteners. Its extensive product range encompasses high tensile fasteners, powder metal parts, cold extruded components, iron powder, radiator caps, gear shifters, water, oil & fuel pumps, rocker lever assemblies, cam followers, valve tappets, rocker shafts, bearing housing, belt tensioners, and various ferrous and non-ferrous components and assemblies. (Reference: http://www.tvsgroup.com/pages/group.htm)
TVS Motors
Being a leading two and three-wheeler manufacturer in India, the company operates cutting-edge manufacturing facilities situated in Hosur, Tamil Nadu, Mysore, Karnataka, Nalagarh, Himachal Pradesh, and Karawang, Indonesia. Demonstrating innovation and industry firsts, they hold the distinction of deploying a catalytic converter in a 100 cc motorcycle, pioneering the indigenous production of a four-stroke 150 cc motorcycle in India, and introducing the country’s first auto-clutch motorcycle. Moreover, they were trailblazers in bringing ABS (Antilock Braking System) technology to the Indian motorcycle market. (Reference: http://www.tvsgroup.com/pages/group.htm)
TVS Holdings (Old Name: Sundaram Clayton)
under the leadership of Mr. Venu Srinivasan. The company actively operates in the field of manufacturing and distributing aluminum die castings. Sundaram Clayton specializes in producing non-ferrous gravity and pressure die castings. However, in a significant development in mid-2023, the company underwent a rebranding, emerging as TVS Holdings. This transformation positions TVS Holdings as the primary holding company responsible for investments in TVS Motor Company.
Wheels India Limited
The company is engaged in the Business of Manufacture of Road Wheels, Parts & Accessories for Machinery / Equipments used by construction and mining industries and Wind Turbine Parts.
TVS Srichakra
It is a manufacturer and exporter of Two and Three-Wheeler tyres and Off-Highway tyres. It is a major OEM supplier to TVS motors and many other leading brands.
TVS Supply Chain Solutions
The company commenced operations as ‘TVS Logistics’ in 1995 before being incorporated as a separate company in 2004. It provides supply chain management services for international organizations, government departments, and large and medium-sized businesses.
TVS Electronics
The company factures and sells Point of sale devices, Printers, Keyboards, etc. besides providing service for various Original Equipment Manufacturers via delivery models like exclusive service centers, multi brand service centers, Onsite support, repair centers and factories.
Conclusion
The TVS Group’s journey from its automotive roots to its current diversified portfolio is a testament to its visionary leadership and adaptability.
The TVS Group’s journey from its inception over a century ago to its current stature as one of South India’s largest business families is a remarkable tale of resilience, innovation, and family values.
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Very nice and informative as I have been doing some business with them with IMPAL & TVS & Son ltd in my early days of starting my career working with Banco Royal a gasket and radiator company based at Baroda Gujarat. Apart from that have also dealt with TVS logistics in the year 2000 for supply chain business for jit supplies to TN based automobile manufacturers.
It’s great to revisit the old nostalgic memories.
Why very successful group companies like Lukas TVS, Sundaram Fasteners are all left out. No mention about the parent Co.Southern Roadways ?! Looks like you are writing on one family branch only!
Hi Subramaniam,
Request you to read through the blog again properly please.
– Lucas TVS is not a listed company (atleast now, may be earlier). This blog is around listed entities only.
– Sundaram Fasteners is well covered already in the article. I am surprised how you comment it as left out!
– The parent company Southern Roadways DOES NOT exist now. Post a amalgamation scheme approved in December 2021, the earlier parent entities are dissolved (or has taken the status of Non-promoters). This is clearly explained in the blog. Southern Roadway is mentioned in the blog as well as in the image. I have also shared a reference to a external article with all details of this changes.
– This blog is only about listed companies and the people running the show of these listed entities. I have articulated this point in the blog well. This is due to practical constraints to get details about unlisted or family held entities.
– Another image of the family tree covers the details of all the family members heading the 10 odd listed entities. Unfortunately TS Doraiswamy passed away much earlier in his life. His family members, I can see are involved in unlisted companies. So i am could not cover much details here.
– I have nothing to do with this group, then why should I write only about one family tree! As a matter of fact, I am going to put about Murgappa group, RAMCO group, Lakshmi group and others based out of Tamil Nadu. TVS group is only a part of this big work.
Additional inputs to enhance this work is welcome. Kindly do read through the blog once more.
Thanks.
Good work done . Breif but detailed info
Great piece on the history of the TVS group Sir. The innovation to set up magnets 100 years ago was very interesting. I can see how thorough and in depth this article is. Thanks for all the hard work and keep sharing 🙂