About
V I P Industries Ltd
VIP Industries Limited is amongst Asia's leading manufacturers and suppliers of luggage, backpacks, and handbags and the market leader in the organised luggage segment. The Company has a range of leading brands, positioned across the entire price range, catering to value (Aristocrat), mid (VIP, Skybags), and premium (Carlton, Caprese) price points.
Promoted by Mr. Dilip G Piramal, the Company's manufacturing infrastructure includes two state-of-the-art units in India and six in Bangladesh which are equipped with modern technologies. Moreover, its strong distribution network gives easy access to VIP luggage everywhere in India via 5,883 points of sale across exclusive stores, multi-brand stores, large format retail, defense canteens, and e-commerce. Presently, it is engaged in manufacturing, and marketing of luggage, bags and accessories.
VIP Industries Limited (Formerly Aristo Plast Limited) was incorporated in January 27, 1968. In 1971, The Company became a wholly owned subsidiary of Blow Plast Retail Limited. The company came out with a rights issue in Nov.'93 for expansion, modernization and balancing its plants located at Nashik, Jalgaon and Sinnar.
In 1997-98, it increased the installed capacity of its injection/vaccum moulded plastic goods by 1000 MT. During the year 1999-2000, the company's exports increased from 14.91 crores from the previous year to 15.49 crores in the current year registering a growth of 4%.
The company has entered into technical collaboration with Delsey S A France for manufacturing some of their premium range suitcases & briefcases.
During FY 2015, the Company launched Verve' a polycarbonate range under the VIP brand for promotion through television campaigns and featured distinctive design and colors, which were well received by consumers.
During the same year, the company launched Ladies Hand Bags category under the brand 'Caprese'. Caprese is now available at more than 500 points of sale across the country, many distribution channels including select Company-run exclusive stores, franchisee stores, multi brand dealers and leading departmental chains like Shoppers Stop, Lifestyle and Central as well as e- commerce platforms.
In the Soft luggage segment, 'Skybags' brand has done extremely well and grew in all luggage brands. It is successfully executing its multi brand - multi segment strategy with consistent investment in advertising for all major luggage brands.
During FY 2016, Branded bags and luggage category saw tremendous growth as company increased its focus with new launches and advertising. Brand VIP remains the first choice of Indian family travel, while Aristocrat and Alfa are providing value to consumers in hypermarkets and trade channels respectively.
In FY 2017, Skybags backpack advertisement play Back to Back' featuring Varun Dhawan has become very popular. Moreover, with latest brand Ambassador Hrithik Roshan on board, brand VIP is all set to get a stylish makeover.
In FY 2018, the company's traditionally strong categories like Soft uprights and Duffle registered a good growth. With Carlton brand for the new-age business traveler, the company is presently tapping high-end market where customers are discerning and willing to pay a premium for good bags.There was a fire incident at Company's Ghaziabad warehouse on 3rd April 2019. There was loss of stocks and fixed assets. The assets damaged by the fire are adequately insured. The damaged assets are being impaired during the period of losses occurred. The insurance claim will be recognized around the time of admission of claim by the insurance company.
As on 31st March 2019, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries.
During the year 2019, V.I.P Accessories BD Private Limited has been incorporated as wholly owned subsidiary of the Company at Bangladesh.
As on 31st March, 2020, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries.
The Board of Directors has approved the allotment of 1,000 listed, secured, rated, redeemable, Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each, aggregating to Rs. 100 crore, on Private Placement basis, in its meeting held on July 30, 2020.
The Company has issued Listed Redeemable 7.45% Non- Convertible Debentures (NCDs) aggregating to Rs 100 Crore on July 30, 2020 and Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to Rs 50 Crore on September 07, 2020.
As on March 31, 2022, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries. During the year 2021-22, 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 continued to be the wholly owned subsidiary companies of the Company.
During year 2022, it opened 32 retail stores, taking the count to 376. It expanded the hard luggage (HL) production capacity by 55 lacs (annual) units across India and Bangladesh. It launched new products in value (Aristocrat) and mid (Skybags) segments.
During year 2022-23, the Company established additional 125 Exclusive Business Outlets (EBOs),taking the count to 500 EBO Stores. It
launched 23 new products in the premium/economy segment and 19 new products in the value segment taking the count to 42 launches.
V I P Industries Ltd
Chairman Speech
Dear Shareholders,
I am pleased to present the Annual Report for VIP Industries
Limited for the fiscal year ended on March 31, 2023. Our Company has
delivered a strong performance, with growth being broad-based across brands and channels.
Furthermore, we have made significant strides in executing our transformation plan. This
journey is of paramount importance, and we are steadfast in our commitment to drive this
transformation, solidifying our foundation for long-term business sustainability.
The luggage & backpacks market in India is estimated to be around
~`10,000 crores1 with branded players constituting ~56%1&2 of the market, while the
remaining portion is dominated by the unbranded segment. In recent years, factors such as
the implementation of GST, supply chain disruptions caused by the pandemic, and a shifting
consumer preference towards branded products are reshaping the industry landscape. To
provide a better perspective, while the overall industry is growing at an average rate of
8-10%, the organised segment, synonymous with branded offerings, is outpacing this growth
with an impressive rate of 15%. This highlights the strong momentum and promising
expansion opportunities within the organised segment.
Throughout the year, our strategic focus has been on fortifying our
core strengths. We have made consistent investments in expanding our in-house
manufacturing capacity. Our facilities in India and Bangladesh now support high volumes of
indigenous production, thereby ensuring high quality products in a cost-effective manner
while significantly reducing our sourcing from China. To enhance our manufacturing
capabilities even further, we have initiated a capital expenditure plan of 200 Crores.
These strategic endeavours exemplify our unwavering commitment to meeting the growing
demands of our valued customers.
1. Euromonitor, estimated for Calendar year 2022
2. Internal estimates
We are also actively investing in bolstering our distribution network
to establish a stronger connection with a broader customer base. The industry is
experiencing significant growth fuelled by the aspirations of customers living in Tier 2
and Tier 3 cities, who are eager to explore the world like their metropolitan
counterparts. Our strategic expansion to these markets will enable us to cater to the
preferences of New India, ensuring our products are accessible to all.
Upholding strong governance practices is fundamental to our operations.
We are keenly aware of the evolving expectations and regulatory landscape, and we
prioritise earning and maintaining the trust of our valued customers, employees, investors
and stakeholders. Our business strategy is shaped by an experienced team of senior leaders
who are fully engaged in driving our success. We remain focussed on continually improving
our disclosure practices, ensuring that good corporate governance remains the bedrock of
our business.
At all our sites and offices, we embrace responsible business
practices, prioritising health, safety and environmental standards. Regrettably, we must
report a significant fire incident at one of our factories in Bangladesh. Our prompt
response ensured that no lives were lost. We conducted a thorough investigation to
determine the root cause and swiftly implemented corrective measures to prevent any future
recurrence. Aligning with our dedication to being a responsible employer, additional
control measures have been implemented across our other factories to mitigate risks
effectively. We remain resolute in our efforts to ensure the well-being of our workforce
and maintain a safe working environment.
In closing, at VIP Industries, the way we consistently create and
deliver that value is by keeping our focus squarely on the future. Our consistent
investments in strengthening our business fundamentals will enable us to cater to the
expanding aspirations of our customers and drive growth. We owe our success to our hard
working and dedicated employees, and on behalf of the Board, I express my gratitude for
their invaluable contributions. I would also like to extend a heartfelt thank you to our
customers, partners and shareholders for their support. As we continue our journey of
value creation, I firmly believe that the future holds even greater prospects for our
Company.
Warm regards,
Dilip G. Piramal
  Â
V I P Industries Ltd
Company History
VIP Industries Limited is amongst Asia's leading manufacturers and suppliers of luggage, backpacks, and handbags and the market leader in the organised luggage segment. The Company has a range of leading brands, positioned across the entire price range, catering to value (Aristocrat), mid (VIP, Skybags), and premium (Carlton, Caprese) price points.
Promoted by Mr. Dilip G Piramal, the Company's manufacturing infrastructure includes two state-of-the-art units in India and six in Bangladesh which are equipped with modern technologies. Moreover, its strong distribution network gives easy access to VIP luggage everywhere in India via 5,883 points of sale across exclusive stores, multi-brand stores, large format retail, defense canteens, and e-commerce. Presently, it is engaged in manufacturing, and marketing of luggage, bags and accessories.
VIP Industries Limited (Formerly Aristo Plast Limited) was incorporated in January 27, 1968. In 1971, The Company became a wholly owned subsidiary of Blow Plast Retail Limited. The company came out with a rights issue in Nov.'93 for expansion, modernization and balancing its plants located at Nashik, Jalgaon and Sinnar.
In 1997-98, it increased the installed capacity of its injection/vaccum moulded plastic goods by 1000 MT. During the year 1999-2000, the company's exports increased from 14.91 crores from the previous year to 15.49 crores in the current year registering a growth of 4%.
The company has entered into technical collaboration with Delsey S A France for manufacturing some of their premium range suitcases & briefcases.
During FY 2015, the Company launched Verve' a polycarbonate range under the VIP brand for promotion through television campaigns and featured distinctive design and colors, which were well received by consumers.
During the same year, the company launched Ladies Hand Bags category under the brand 'Caprese'. Caprese is now available at more than 500 points of sale across the country, many distribution channels including select Company-run exclusive stores, franchisee stores, multi brand dealers and leading departmental chains like Shoppers Stop, Lifestyle and Central as well as e- commerce platforms.
In the Soft luggage segment, 'Skybags' brand has done extremely well and grew in all luggage brands. It is successfully executing its multi brand - multi segment strategy with consistent investment in advertising for all major luggage brands.
During FY 2016, Branded bags and luggage category saw tremendous growth as company increased its focus with new launches and advertising. Brand VIP remains the first choice of Indian family travel, while Aristocrat and Alfa are providing value to consumers in hypermarkets and trade channels respectively.
In FY 2017, Skybags backpack advertisement play Back to Back' featuring Varun Dhawan has become very popular. Moreover, with latest brand Ambassador Hrithik Roshan on board, brand VIP is all set to get a stylish makeover.
In FY 2018, the company's traditionally strong categories like Soft uprights and Duffle registered a good growth. With Carlton brand for the new-age business traveler, the company is presently tapping high-end market where customers are discerning and willing to pay a premium for good bags.There was a fire incident at Company's Ghaziabad warehouse on 3rd April 2019. There was loss of stocks and fixed assets. The assets damaged by the fire are adequately insured. The damaged assets are being impaired during the period of losses occurred. The insurance claim will be recognized around the time of admission of claim by the insurance company.
As on 31st March 2019, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries.
During the year 2019, V.I.P Accessories BD Private Limited has been incorporated as wholly owned subsidiary of the Company at Bangladesh.
As on 31st March, 2020, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries.
The Board of Directors has approved the allotment of 1,000 listed, secured, rated, redeemable, Non-Convertible Debentures (NCDs) of Rs.10,00,000/- each, aggregating to Rs. 100 crore, on Private Placement basis, in its meeting held on July 30, 2020.
The Company has issued Listed Redeemable 7.45% Non- Convertible Debentures (NCDs) aggregating to Rs 100 Crore on July 30, 2020 and Listed Redeemable 7.25% Non- Convertible Debentures (NCDs) aggregating to Rs 50 Crore on September 07, 2020.
As on March 31, 2022, the Company has 1 Indian and 4 overseas wholly owned Subsidiaries. During the year 2021-22, 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 continued to be the wholly owned subsidiary companies of the Company.
During year 2022, it opened 32 retail stores, taking the count to 376. It expanded the hard luggage (HL) production capacity by 55 lacs (annual) units across India and Bangladesh. It launched new products in value (Aristocrat) and mid (Skybags) segments.
During year 2022-23, the Company established additional 125 Exclusive Business Outlets (EBOs),taking the count to 500 EBO Stores. It
launched 23 new products in the premium/economy segment and 19 new products in the value segment taking the count to 42 launches.
V I P Industries Ltd
Directors Reports
V I P Industries Ltd
Company Background
| Incorporation Year | 1968 |
| Registered Office | 5th Floor DGP House,88-C Old Prabhadevi Road
Mumbai,Maharashtra-400025 |
| Telephone | 91-22-66539000,Managing Director |
| Fax | 91-22-66539089 |
Dilip G PiramalNeetu Kashiramka| Company Secretary | Anand Daga |
| Auditor | Price Waterhouse Chartered Accountants LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | Link Intime India Pvt Ltd
C-101 247 Park,L B S Marg,Vikhroli West,Mumbai-400083 |
V I P Industries Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Dilip G Piramal | Chairman (Non-Executive) | 2023 |
| Radhika Piramal | Vice Chairperson & ED | 2023 |
| Amit Jatia | Non-Exec. & Independent Dir. | 2023 |
| Anand Daga | Company Sec. & Compli. Officer | 2023 |
| Nisaba Godrej | Non-Exec. & Independent Dir. | 2023 |
| Tushar Jani | Non-Exec. & Independent Dir. | 2023 |
| Ramesh Damani | Non-Exec. & Independent Dir. | 2023 |
| Neetu Kashiramka | Managing Director & CFO | 2023 |
| Suresh Inderchand Surana | Additional Director | 2023 |
| Ashish K Saha | Additional Director & E D | 2023 |
V I P Industries Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_CD |
| CNX500 |
| BSESMALLCA |
| BSEALLCAP |
| GOODSSERVI |
| SML250 |
| MSL400 |
| NFTYMSC400 |
| NFTYSC250 |
| NF500M5025 |
| NFTYTOTMKT |
V I P Industries Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Sale of Traded Goods | NA | 0 | 0 | 0 | 1027.08 |
| Sale of Finished Goods | NA | 0 | 0 | 0 | 988.98 |
| Other Operating Revenues | NA | 0 | 0 | 0 | 3.47 |
| Others | NA | 0 | 0 | 0 | 0 |
| Excise duty | NA | 0 | 0 | 0 | 0 |
| Job Work | NA | 0 | 0 | 0 | 0 |
| Service Income | NA | 0 | 0 | 0 | 0 |
| Element Panels | MT | 0 | 0 | 0 | 0 |
| Sales | NA | 0 | 0 | 0 | 0 |
| Soft Luggage | NA | 0 | 0 | 0 | 0 |
| Flexible Luggage | No | 0 | 0 | 0 | 0 |
| Hard Luggage | NA | 0 | 0 | 0 | 0 |
| Injection/Vaccum Moulded Plast | MT | 0 | 0 | 0 | 0 |
| Injection/Vaccum Moulded Plast | No | 0 | 0 | 0 | 0 |
| Injection/Vaccum Moulded Plast | Pcs | 0 | 0 | 0 | 0 |
| Moulded Tools/Jig & Fixtures | No | 0 | 0 | 0 | 0 |
| Furniture | NA | 0 | 0 | 0 | 0 |