GenNext takes driver’s seat to fuel TVS growth

Automobile components conglo­m­e­rate TVS Group is inducti­ng its GenNext in a well-thought out manner to dri­ve the firm’s growth in the wake of its ageing seniors and ambitious expansion and diversification plans.

Last week, Sudarshan Venu (22), son of Venu Sri­nivasan, managing director of Sundaram Clayton and CMD of TVS Motor Company, was inducted into the board of SCL as an additional director. Along with him, Krishna Mahesh (36), son of K Mahesh, ch­airman and managing director of Sundaram Brake Linings (SBL) was also appointed as chief operating officer of SBL. Interestingly, this is the second term for Krishna Mahesh, who quit as ED of SBL in 2009 after a four-year stint in the company.

Presently, almost every listed firm of TVS group has a GenNext member at the driver’s seat. These include Lucas TVS (unlisted), Sundaram Finance, Sundram Fasteners, Sundaram Clayton, Sundaram Brake Linings and Wheels India.

“These are a set of shrewd and sensible people who know the kind of fortunes they are inheriting," says Narayanan Ramaswamy, executive director of consulting firm KPMG. "All of them are not just well educated but also have a good exposure to the right kind industry and hence they come with rich experience. I am very enthused and positive about the way things are happening,” he adds referring to the induction of increasing number of GenNext in the leading family-run businesses in south India.

Encouraging the family-run companies, Ramas­wamy says, "These companies generally draw flak only when they don’t have an objectivity and professional approach." However, with the GenNext in industrial houses like TVS and Murugappa groups loaded with good work experience, it looks very positive, he says. "They have a family bond. All they need to do is to throw themselves to the challenge and the support comes along,” he adds.

Not just sons, even daughters too are keen to share the burden of their ageing fathers. While sons drive the operations in Lucas-TVS (Arvind Balaji, joint managing director), Sundaram Finance (Harsha Viji, executive director) and Wheels India (Srivats Ram, managing director), it is the daughters who have taken up the tasks in Sundaram Clayton and Sundram Fasteners.

Engineering management doctorate Lakshmi Venu, daughter of Venu Srinivasan and daughter-in-law of Infosys’ NR Narayana Murthy, took over as director-strategy of SCL last year. This graduate from University of Warwick has worked in a couple of TVS group firms before her appointment.

In the case of Sundram Fasteners, two daughters of CMD Suresh Krishna, Ar­athi Krishna and Arundathi Krishna, have donned the role of JMD and whole time director respectively.

Induction of GenNext will not only help in taking the firms to next level but also growing into a multibillion dollar ones, opines Ramaswamy. "Like most pr­ofessionally-run firms, that have a kicker which dies with the incumbent CEO, in family-run groups, the successors are responsible, answerable, accountable and also have a pride," he feels.

The young and daring members are keen to look at for opportunities to branch out and increasing the portfolios. "More importantly, they are not sentimental about some of these things," he says.