VIPIND

Rebuilds Strategy as Market Share Slips and Valuation Trails Safari

, India’s largest luggage brand, is undergoing a strategic reset under new leadership after a challenging post-pandemic phase. With Multiples PE now leading and Atul Jain as MD & CEO, the company is focusing on inventory cleanup, brand rationalisation, and retail expansion to regain momentum and narrow its valuation gap with peers. Revenue fell 25% YoY due to reduced discounting in trade channels and lower realisations. Gross margin was impacted by a ₹55 crore provision for slow-moving inventory, with another ₹25–30 crore expected in Q3. The company chose to absorb inventory losses rather than deepen channel discounts. VIP faces stiff competition from Samsonite, Safari, unorganised players, and D2C brands. Unlike other categories, luggage did not benefit from GST rate cuts, and VIP’s underperformance suggests sustained market share erosion, making recovery more complex. Atul Jain is driving a turnaround plan focused on divesting non-core assets, energising core brands, exiting weak ones, and expanding retail presence in high-visibility markets. Supply-chain efficiency, employee productivity, and e-commerce rationalisation are key priorities. The second half of FY26 may benefit from festive and wedding season demand, targeted campaigns, product upgrades, and improved performance in Bangladesh. However, gains are expected to be gradual rather than dramatic. Despite similar scale, VIP trades at a 51% discount to Safari due to weaker financials. With Dilip Piramal’s family retaining a 19.57% stake and strategic changes underway, patient investors may consider accumulating on dips, while existing holders are advised to stay invested.