How Sudarshan Venu’s TVS Dwarfed Dr Lakshmi Venu-led TAFE and SCL - Is Meteoric Rise of TVS Real Reason Behind Renewed Calls for ‘Distribution’ of Venu Srinivasan’s Assets?

Amid fresh calls of ‘equitable distribution’ from within the TVS family, Venu Srinivasan — Chairman Emeritus, TVS Motor Company has put the record straight by mincing no words in saying that the bifurcation of his assets was done in a fair and transparent manner.    

And even though the starting point of the corporate leadership journey of his two children - Dr Lakshmi Venu and Sudarshan Venu seems to have been done from a point of parity and equality in 2014, the decade-long trajectories of the respective companies that the two children control have been starkly opposite. 

TVS Motor Company, the undisputed leader vs TAFE and SCL that have been losing market share

While TVS Motor’s revenue increased from Rs 8,694 crore in FY14 to Rs 47,270 crore in FY26 under the leadership of Sudarshan Venu, Sundaram-Clayton Limited’s (SCL) revenue has witnessed a rather dampened growth - from Rs 1,197 crore in FY14 to Rs 2,259 crore in FY25 under the leadership of Dr Lakshmi Venu. Not just that, Tractors and Farm Equipments Ltd (TAFE), the second company that Dr Lakshmi Venu controls, witnessed an equally subdued growth from Rs. 9,207 in 2013-14 to Rs. 13,638 in 2025-26. 

Republic Business examined the financials of the three companies in question and a deeper dive in the valuation matrix raises questions on the timing of the renewed calls for distribution that was agreed upon and legally documented by all the family members of Venu family in an MoU on March 20, 2024.

Sudarshan Venu’s TVS Motor Company, the shining global star in two-wheeler market

From Rs 8,694 crore in FY14, TVS Motor Company has become a leading global manufacturer of two-wheelers with a revenue of Rs 47,270 crore. 

During this period, under the leadership of Sudarshan Venu, TVS’ global ranking skyrocketed to third position from sixth in 2014. A 2.8X increase in sales volume, a 19% market share in India’s two-wheeler market, a 6X jump in international business and a massive 14X jump in Profits Before Tax (PBT) - the story of TVS is one that resonates with the aspirations of growing India. Presently a leader in two-wheeler EV rankings in India, TVS’ market cap has increased 23X since 2013-14.

The Lacklustre Trajectory of Dr Lakshmi Venu’s TAFE and SCL

And now, a look at TAFE and SCL. Between 2013-14 to 2025-26 SCL’s revenue grew from Rs 1197 crore to Rs 2259 crore - a CAGR of 6% vs TVS Motor Company’s 5.4X jump for corresponding period. SCL’s PBT plunged from Rs 61 crore to Rs 39 crore between the period - a CAGR of -4%, when TVS Motor Company multiplied its profits 14X. Moreover, SCL’s ROCE slipped to -2.8% from the legacy 13.3% that it began its journey with in 2013-14.

TAFE showed a similar trajectory. Its FY 2013-14 revenue stood at Rs 9207 crore. In FY 2025-26, the same increased Rs 13638  crore - a CAGR of modest 4% when compared to TVS Motor Company’s multi-fold rise. A PBT of 5% CAGR and more importantly, a 6.6% decline in India market share - from 24% in 2013-14 to 17.4% in 2025-26 stands out in stark contrast to TVS Motor Company’s performance which makes it an undisputed no 1 in Indian EV rankings and third global two wheeler player by volume.

Interestingly, TAFE’s this market share looks subdued even when compared against its own industry peers. Mahindra, for instance grew its tractor business market share from 42% in 2013-14 to 43.6% in 2025-26, up 1.6%. TAFE, as mentioned above, on the other hand, lost its market share by 6.6%, declining from 24% in 2013-14 to 17.4% in 2025-26.

And now that Venu Srinivasan has put the argument to a logical conclusion over the bifurcation of his assets, underlining that the division was legal and fair, questions are thus being raised on whether the skewed and diametrically opposite growth trajectories of the assets handled by his two children are the reasons behind the renewed calls for equitable distribution of what was long settled and agreed upon by the now-demanding parties.