V I P Industries Ltd
NSE:VIPIND
V I P Industries Ltd
V.I.P.Industries Ltd. engages in manufacturing and marketing of luggage, bags, and accessories. The company is headquartered in Mumbai, Maharashtra and currently employs 1,286 full-time employees. The firm is engaged in the business of manufacturing and marketing luggage, bags and accessories. The firm's products include upright trolley cases, duffel bags, soft uprights, school bags, rucksacks, backpacks, laptop bags and daily essentials, ladies handbags, vanity cases, hard suitcases, briefcases and others. The firm has a range of brands across luggage categories. The company also manufactures plastic luggage. The plastics used are polypropylene and polycarbonate. The firm's brands include VIP Bags, Carlton, Skybags, Aristocrat, Alfa and Caprese. The firm has manufacturing facilities at various locations across India. The firm has five wholly owned subsidiaries, Blow Plast Retail Limited, VIP Industries Bangladesh Private Limited, VIP Industries BD Manufacturing Private Limited, VIP Luggage BD Private Limited and VIP Accessories BD Private Limited.
V.I.P.Industries Ltd. engages in manufacturing and marketing of luggage, bags, and accessories. The company is headquartered in Mumbai, Maharashtra and currently employs 1,286 full-time employees. The firm is engaged in the business of manufacturing and marketing luggage, bags and accessories. The firm's products include upright trolley cases, duffel bags, soft uprights, school bags, rucksacks, backpacks, laptop bags and daily essentials, ladies handbags, vanity cases, hard suitcases, briefcases and others. The firm has a range of brands across luggage categories. The company also manufactures plastic luggage. The plastics used are polypropylene and polycarbonate. The firm's brands include VIP Bags, Carlton, Skybags, Aristocrat, Alfa and Caprese. The firm has manufacturing facilities at various locations across India. The firm has five wholly owned subsidiaries, Blow Plast Retail Limited, VIP Industries Bangladesh Private Limited, VIP Industries BD Manufacturing Private Limited, VIP Luggage BD Private Limited and VIP Accessories BD Private Limited.
Volume & Revenue Decline: V.I.P. Industries saw both volume and value declines for the first time in five quarters, with a 17% drop in e-commerce primary sales driving a 12% overall revenue decrease.
Competitive Pressure: Management attributed weak performance mainly to heightened price competition, particularly from new entrants in lower-end and e-commerce segments.
Margins Impacted by One-offs: Gross margin was 48% and EBITDA margin was 10% after adjusting for one-time costs and inventory provisions; reported margin was lower due to INR 15 crore inventory provision and INR 10–11 crore other one-off expenses.
Channel Challenges: Both e-commerce and modern trade channels faced headwinds; e-commerce accounts for nearly half of volume and is dominated by lower-priced products.
Premiumization Progress: Premium brand Carlton delivered double-digit growth, even as the lower-end segment faced the most pressure.
Inventory & Debt Reduction: Inventory reduced by INR 20–22 crores (net of provision) this quarter, with continued focus on further reductions; debt remained flat versus March 2025.
Bangladesh Turnaround: The Bangladesh facility’s capacity utilization exceeded 80% and swung to an INR 8 crore operating profit from a loss last year.
