VIP is an iconic Indian brand that’s been a household name for generations. Chances are, almost every Indian home had – or has – a VIP suitcase or bag of some kind. Founded in 1968, the company grew to become one of the world’s leading manufacturers and retailers of luggage, backpacks, and handbags.
The brand roster includes VIP, Skybags (youth brand of backpacks and luggage), Caprese (women’s handbags and accessories), Alfa (budget segment), and Aristocrat (contemporary luggage). With 5 brands and a vast network of 13,000+ points of sale, VIP has been the market leader in India, holding an estimated 44% market share in the luggage segment in 2023.
In mid-July 2025, Dilip Piramal and family, the promoters of VIP Industries, entered into a definitive agreement to divest up to 32% stake in the company to a consortium led by PE firm Multiples, paving the way for a change in control. Upon completion, the transaction will result in Multiples Alternate Asset Management, a leading private equity firm headed by Renuka Ramnath, taking control of VIP Industries. While the company’s leadership will transition to Multiples, the Piramal family will retain a stake and continue as shareholders. Mr. Dilip Piramal will take on the honorary role of Chairman Emeritus.
Ms. Renuka Ramnath noted that Multiples was proud to lead the ownership transition and expressed the firm’s commitment to building on VIP’s strong heritage to unlock its next phase of growth. Mr. Dilip Piramal said that the development marked a significant step toward restoring VIP’s legacy and helping the company regain its position in the Indian luggage market, where it had faced challenges in recent years.
So how did VIP get to this point? And what were the challenges the luggage brand faced? Here’s a closer look.
Well, the pandemic hit the luggage industry hard, with travel bans, remote school, and Work-From-Home. But post-pandemic, India’s luggage market began to recover steadily, thanks to a surge in travel and weddings. Plus, with learning back on campuses instead of online, the demand for backpacks was back (no pun intended). During this phase, Safari Industries Limited, India’s second largest luggage manufacturer, managed to make gains. VIP saw a sharp recovery in revenues post-COVID, but recent quarters have seen the company losing ground, with profits declining and market share eroded, down to 38%.
Excess baggage
There’s a combination of factors that have put VIP in this position, perhaps from excess inventory or not being able to keep up with market trends.
- Inventory pile up: The luggage industry is challenging — demand is seasonal, repeat purchases are infrequent, and inaccurate forecasts can lead to costly inventory buildup. VIP’s dominance was driven by its stronghold in the soft luggage segment. But as consumer preferences shifted toward hard luggage, especially post COVID, the company tried to respond, but perhaps not fast enough. By March 2024, VIP was sitting on ₹916 crore in inventory, most of it in soft luggage, which the market wasn’t as keen on The company in its 2023-24 annual report stated, “…we have devised a systematic plan to significantly reduce our soft luggage inventory, and this liquidation will enable us to lower our debt.”
- Consumer preferences and new entrants: Safari and Samsonite have been VIP’s biggest competitors, but an influx of DTC brands like Mokobara, Uppercase, Assembly and Nasher Miles also impacted the legacy brand and led to a loss in market share as per a research report by Anand Rathi. The new age DTC brands knew how to cater to Millennials and Gen Z, for whom luggage is as much a lifestyle statement as it is utility. While durability was once the top priority, today’s travellers also value design, colour, and innovation.
- Slow move to e-commerce: VIP was slow to embrace e-commerce and online marketplaces. Competitor Safari was an early adopter to online e-commerce sales, reporting 20–25% of revenue from e-commerce by FY23, whereas VIP was stuck at just 16%.
- Management changes: MD-level changes have had an impact on the company. In August 2023, then-MD Anindya Dutta resigned citing personal reasons, clearing the path for CFO Neetu Kashiramka to the position in November 2023. In June 2024, Nisaba Godrej stepped down as an independent director from the board of VIP Industries, citing differences over leadership accountability and succession planning. In her letter she said, “As discussed, due to my differing view on leadership accountability and succession planning, I will be resigning from the board effective June 23rd, 2024.” These changes seem to have clouded company strategy and investor sentiment.
A possible turnaround
To reclaim its market leadership, VIP Industries laid out three key strategic priorities in its 2023-24 annual report: portfolio transformation, brand premiumisation, and process transformation.
- Portfolio transformation: VIP is reimagining its product lineup with a focus on innovation. The company has partnered with an internationally-acclaimed designer to refresh its offerings. It plans to roll out new collections under three themes of lightweight, tech-enabled, and luxury luggage, many of which will be first-of-their-kind in India’s luggage market.
- Brand premiumisation: Catering to India’s growing appetite for premium products, VIP is elevating its flagship brands, Carlton and VIP, with high-end product lines aimed at aspirational middle-class consumers. The company is also ramping up marketing efforts by opening exclusive outlets in premium locations and roping in celebrity brand ambassadors to enhance visibility and appeal.
- Process transformation: On the operations front, VIP is focusing on efficiency. With soft luggage demand falling, the company has restructured its Bangladesh facility, including downsizing its workforce. In parallel, VIP is expanding hard luggage capacity to meet rising demand, in line with broader industry trends, as highlighted by MD Neetu Kashiramka in the FY24 annual report.
The next destination
It’s clear that VIP has been affected by evolving consumer preferences, a delayed e‑commerce focus, and aggressive competition from both existing stalwarts like Safari and Samsonite and younger D2C players like Mokobara, Assembly, and Uppercase.
However, the company still has a clear advantage in terms of reach, revenue, market share and capacity. The challenge is adjusting to what the market wants at this point, which is already underway with its 3-pronged strategy. The ownership transition from the Piramal family to Multiples presents a new opportunity for VIP. A fresh perspective that enables discipline with execution— successfully repositioning brands, sustaining e-commerce traction, and winning back premium consumers — may help the company regain lost market share and get back to profitability.
Sources
Mint: Multiples, 360 One among homegrown EPs eyeing a minority stake in VIP Industries
Mint: The luggage leader is staging a turnaround. But can it overcome its excess baggage?
Mint: VIP promoter reviews stake sale talks, hires new banker
Mint: Dilip Piramal looking to divest stake in VIP
Mint: Can VIP Industries regain its lost ground in the Indian luggage market?
M&A Critique: Multiples, 360 One among homegrown PEs eyeing a minority stake in VIP Industries
PrimeInvestor: Prime Review – Can VIP Industries shed the baggage that is weighing it down?
PathFinders: VIP Industries: Can the Luggage King Regain Its Crown?
VIP Q4 & FY24 Earnings Conference Call
Forbes: VIP Industries’ business woes could delay promoters’ stake sale plan by a year
Moneycontrol: Advent International eyes controlling stake in VIP Industries: Report
The Core: VIP has too much baggage
Financial Express: Legacy luggage players cede ground to new-age rivals