Bengaluru: VIP industries on Sunday said that Multiples Alternate Asset Management, Samvibhag Securities and the Sacheti family (founders of jewellery brand CaratLane) together will buy a 32 per cent stake in the luggage maker from promoter Dilip Piramal for Rs 1,763 crore and will also make an open offer to the company’s public shareholders for another 26 per cent at Rs 1,438 crore. The deal is being seen as a positive development by industry executives, not just for the company but for India’s broader luggage industry.
While VIP is no longer the clear market leader, it continues to be one of the top three players in the organised luggage segment, alongside Samsonite and Safari – all three together hold nearly 90 per cent of the branded market. VIP alone has a market share of around 29–30 per cent.
Over the last few years, VIP has struggled to keep up with key shifts in consumer demand, particularly the surge in hard luggage, which now accounts for 80 per cent of sales, said industry executives. VIP was slow to adapt, leading to excess inventory and deep discounting, which in turn triggered a price war across the industry.
Talking to ETRetail, Shobit Singhal, Research Analyst, Anand Rathi Research said, “The new management should bring stability, reduce discounting, and shrink the value-volume gap. This deal is good for the ecosystem, too.”
Abhishek Daga, chairman and co-founder of Nasher Miles, also believes the VIP deal validates the potential of the sector. “Fifty per cent of the market is still unbranded and highly fragmented. This change at VIP underlines the growth potential in this space,” he said.
Analysts and industry players believe the entry of a private equity investor and new leadership will bring operational discipline and a more long-term growth focus, which could help rationalise pricing and reduce volatility in the market.
Sudip Ghose, founder of new-age luggage brand Uppercase, told ETRetail that legacy players had triggered the discounting cycle, while younger brands had stayed away from it.
“New-age players do not do discounting. The discount wars were started by legacy brands,” said Ghose, who served as the MD of VIP Industries before founding Acefour Accessories (the parent company of Uppercase) in 2022.
He added that post-COVID, brand experimentation across categories has improved, leading to the rise of new-age brands. While the luggage industry has been receiving active funding over the past few years, Ghose noted that the entry of Multiples PE, should further give a funding boost to the entire luggage industry.
Uppercase currently has an annualised revenue run rate of over Rs 150 crore and operates 25 exclusive outlets with its own manufacturing facility.
The Indian luggage industry grew 5 per cent in FY25, touching Rs 17,600 crore, according to Crisil Ratings. While organised players in the segment generated Rs 8,000 crore in revenue in FY25, margins have been under pressure due to competitive pricing and high inventory levels.
“Discounting impacted profitability in FY25, and some pressure will continue in FY26,” said Rahul Guha, Senior Director, Crisil Ratings.
“However, demand for hard luggage and backpacks will drive 6–8% growth for organised players,” he noted.
Daga of Nasher Miles also highlighted that the company is doubling down on the backpacks category. Nasher Miles recorded Rs 120 crore in revenue in FY25 and is targeting Rs 180 crore plus for FY26, he said, adding that the brand is present across 1,400+ multi-brand outlets, 3 exclusive brand stores, and recently made inroads into modern trade.
The Rs 3,200 crore deal marks a significant leadership reset at VIP Industries, bringing an end to the decades-long involvement of the Piramal family with the company. Dilip Piramal, who took over the company in 1980, admitted in media interviews post-deal that the decision to delay the exit cost him significantly.
The incoming promoters are expected to bring in fresh leadership, strategy, and governance focus at a time when VIP has been facing competitive and operational headwinds.
