मैगज़्टर गोल्ड के साथ असीमित हो जाओ
10,000 से अधिक पत्रिकाओं, समाचार पत्रों और प्रीमियम कहानियों तक असीमित पहुंच प्राप्त करें सिर्फ
कोशिश गोल्ड - मुक्त
VIP Industries’ revival plan meets market reality
The New Indian Express Vellore
|May 24, 2026
Company continues to report weak performance in Q4FY26 as its losses widen to ₹128.80 cr from ₹32.63 cr in Q4FY25 due to high provisions and falling sales
INDIA’S largest luggage-maker, VIP Industries, which is in the middle of a major restructuring and clean-up exercise under new management, is finding the road to revival difficult.
The company, founded in 1971 by Dilip Piramal and now chaired by Renuka Ramnath as non-executive chairperson, continued to report weak performance in Q4FY26 as its losses widened to ₹128.80 crore from ₹32.63 crore in the March quarter of FY25 due to high provisions and falling sales. The company reported provisions of nearly ₹130 crore in FY26 to clean up slow-moving and obsolete inventory.
Its revenue fell 14% in FY26 to ₹1,858 crore from ₹2,178 crore in FY25. Consolidated net loss widened sharply to ₹338 crore in FY26 from ₹68.8 crore in FY25. Cash and cash equivalents also declined to ₹31.71 crore from ₹37.96 crore a year ago, while total equity fell sharply to ₹289.5 crore from ₹616 crore due to continued losses.
However, there are signs of improvement. The luggage maker reduced its overall debt to ₹410.75 crore in FY26 from ₹415.25 crore in FY25, while net debt declined to ₹295 crore from ₹367 crore last year. Analysts expect debt levels in FY27 to remain broadly stable.
With stock-keeping units reduced by 25-30% during the year, lowering inventory maintenance costs, and debt levels expected to remain under control, the company is hoping to revive the brand in the current financial year.
For decades, VIP Industries dominated India’s luggage market. However, in recent years, the company has seen its market share erode rapidly amid growing competition from rivals such as Samsonite and Safari Industries, as well as digital-first brands like Mokobara. As per the company’s FY25 investor presentation, VIP’s market share fell from 40% in 2021 to 35% by March 2025, while Safari and Samsonite narrowed the gap with market shares of 32% and 33%, respectively.
Back story
यह कहानी The New Indian Express Vellore के May 24, 2026 संस्करण से ली गई है।
हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।
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