The Courage to Let Go

After five decades at the helm, VIP Industries' promoters have done what few legacy families dare: ceded control to give the brand a second life

- Yuthika Bhargava

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic,” wrote Peter Drucker, the father of modern management. Few companies in India have put that lesson into practice quite like VIP Industries.

For more than 50 years, the company had come to represent an India on the move. From Aristocrat trolleys on railway platforms to VIP suitcases at airport terminals and Skybags backpacks in college campuses, VIP was ubiquitous.

The Piramal family built, ran and defended the company through economic shifts and market churn for decades. But by 2025, the wheels were starting to wobble. Revenue was slipping. Competition was biting deeper. And there was no clear successor within the family to steady the path.

In July, Dilip Piramal sold a 32% controlling stake to a consortium led by private-equity firm Multiples, retaining about 20% as a minority shareholder. “The younger generation is not interested in management. So, what do I do?” he had said following the announcement.

This wasn’t a sudden unravelling. The company had been wrestling with leadership uncertainty for years. While private-equity offers had come earlier too, some even at better valuations, the family had held on. However, not this time.

“Typically, there is an emotional attachment to a business that has been built, sometimes over generations. It is often intertwined with family identity and legacy,” says Pranav Sayta, partner and national leader, international tax and transaction services, EY India, a consultancy. “That is one of the reasons why Indian promoters have traditionally been reluctant to let go.”

Dilip Piramal is now chairman emeritus, while his daughter Radhika, who was vice-chairperson at the time, has also stepped away.

The Unravelling