MANAGING FAMILY BUSINESS

DIGITAL ASSIGNMENT -2

SUBMITTED BY: SUBMITTED TO:

P. SUJEETH RAJ PROF PRABU CHRISTOPHER

19BBA0031 PROF VITBS

SLOT: B1 VIT
 1. INTRODUCTION:

TVS Motor Company, was found in the year 1979 with the USD 1.5 billion, flagship
company of the 100 year old, USD 7 billion, TVS Group, is one of India’s leading two-
wheeler manufacturers and among the top 7 in the world. The company has the widest range
of products in the Indian two and three wheeler industry with exports to more than sixty
countries worldwide.

The company has an annual production capacity of 4 million 2 wheelers & 120,000
three wheelers. TVS Motor manufactures the largest range of 2-wheelers, starting from
mopeds, to scooters, commuter motorcycles, to racing bikes like the Apache series and the
RR310. Whatever your requirement be, they have one for everyone.

Driven by technology and innovation at the wheel, TVS Motor Company is proud of a
rich talent pool of more than 7000 personnel who constantly highlight the company’s
commitment to ensure best practices in state-of-the-art manufacturing facilities at Hosur in
Tamilnadu, Mysore in Karnataka, Nalagarh in Himachal Pradesh and Karawang in Indonesia

In the year June 2009 T V Sundram Iyengar & Sons Ltd and their subsidiaries
acquired the holding of foreign collaborators Clayton Dewandre Holdings Ltd in Sundaram-
Clayton Limited. Thus Sundaram-Clayton Ltd became a subsidiary of T V Sundram Iyengar
& Sons Limited. Following to this acquisition the company also became the subsidiary of
TVS with effect from June 3 2009.
 2. OBSERVATIONS:

For this assignment I talked to the branch manager of TVS- Bm Motors, Ranipet who
I contacted through my uncle and also searched online and made certain observations as
follows:

 SUCCESSION PLAN: Thirukurungudi Vengaram Sundaram Iyengar was an Indian

industrialist and automobile explorer. In 1911, he founded T. V. Sundaram Iyengar &
Sons, a bus company which later changed into automobile production and emerged as
the parent company of the TVS Group, one of India's biggest business conglomerates.
The Flagship Company of the group is TVS Motors which was established by his son
T.S. Doraiswamy. Venu Srinivasan, who is the Chairman of TVS Motor Company
succeeded the TVS motor company from his grandfather. As part of the succession
plan of the TVS group, Sudarshan Venu, son of TVS Motor Company chairman Venu
Srinivasan joined as the supplementary director on the board of TVS group company
Sundaram-Clayton Ltd (SCL). Sudarshan's engagement comes about two years after
his elder sister Lakshmi Venu was inducted into the company.
 CLEAR VISION: They are committed to be an extremely profitable, socially
responsible, and leading manufacturer of high value for money, environmental
friendly, lifetime personal transportation products under the TVS motor company
brand, for customers primarily in Asian markets and to provide fulfilment and
prosperity for employees, dealers, and suppliers.
 INNOVATION: With technology and innovation as its key drivers, TVS Motor has
invested crucially in research and development and is committed to bringing out new
generation products which would redefine segments, while consolidating and
reinforcing the existing position of TVS Motor Company in the two and there wheeler
segments, worldwide.
 NO FORCEFUL ENTRY INTO THE BUSINESS: Joining the business is totally a
decision of the scions. As Krishna, the Chairman of the TVS Groups states “TVS
never forces anyone to join the company. I waited 10 years for my two daughters to
join the business”. The desire to enter the business must also be matched by aptitude,
and it’s the latter that will decide the career path for the next gen.
 FREEDOM TO OPERATE: A key factor in the TVS Motor company growth has
been a federal structure, which gives individual members a great deal of freedom to
 operate. “This has given us a platform on which skilled managers have built corporate
as well as social institutions like schools and NGOs. Our group may have been
conventional in many areas, but we have struck to our brand ethos and delivered
significant value to shareholders, both promoters and public.
 EFFECT OF PANDEMIC: TVS Motor posted a net standalone loss at Rs 139.07
crore for the quarter ended June 30. Operations of auto companies were heavily
affected during the quarter due to pandemic induced lockdown. The company said
this quarter is not a representative quarter due to the Covid-related shut down for the
major part.
 PRESSURE OF YOUNG DIRECTOR: Son of Venu Srinivasan, CMD TVS Motor
has been under pressure in the two-wheeler market for the past few years, losing
market share to new entrants to the country such as Honda. Sudarshan, who was
appointed as the joint managing director of TVS Motor in September last year.
 INEXPERIENCE OF YOUNG MEMBERS: The new generation's ability to manage
risk will be difficult in the absence of experience of starting new ventures. As most of
them have not had to go through the struggles of setting up and building a new
business from scratch, their capability basket is not likely to be the same as their
predecessors.
 DIVERSIFICATION PLAN: A trading company in its initial decades, TVS Group in
the 1960s diversified into auto components and later into auto manufacturing,
financial services, logistics and electronics. Third-generation leaders such as Krishna,
Srinivasan and Santhanam built the group into the globally ambitious conglomerate it
is now.
 INFORMALITY: TVS group of companies have a mix of family and professional
executives. Major panic for "such families where several silos of individualism are
allowed to flourish through individual entrepreneurship" will be about keeping the
family together across generations.

3. SOLUTIONS:
 The TVS motor company should take several measures which will help it to
overcome supply chain disruptions and stabilise operations, so that they can avoid
such losses in this pandemic situation.
  As the Director of TVS motor company is too young to handle such pressure he can
seek advice from his father who is well experienced in this industry.
 At TVS motor, the young-generation leaders are inducted at lower levels, exposed to
customers, the outside world, and then moved gradually into operational roles, their
main task for the young generation is to re-invent in businesses and grow remarkably
faster.
 Having more family members than professionals in TVS will make it fall in the hands
of bad corporate governance practices. They should bring in new talents rather than
involving their own family members.
 They should not appoint family members to senior positions merely by virtue of being
born into the family. They should evaluate their knowledge and potential about the
business before appointing them.
 It is difficult to control other members of the family. They should give importance to
the business rather than their own personal emotions.

4. REFERENCES:

https://www.tvsmotor.com/

https://en.wikipedia.org/wiki/TVS_Motor_Company