It was a highly volatile trading session for luggage company VIP Industries.

The stock price fell nearly 5% in early trade on 14 July 2025 following reports suggesting company’s promoters Dilip Piramal and family signing a share purchase agreement to sell up to 32% of their stake in the firm.

As the session progressed, the stock erased all its early losses and ended over 5% higher.

VIP Industries Share Price

Let’s find out what caused such a volatile move in the counter.

Promoter Exit: VIP Industries Undergoes a Major Shift

The promoters of VIP Industries — the Dilip Piramal family — have signed an agreement to sell their 32% stake to an investor group.

Currently, Dilip Parimal and the family own 51.7% stake in VIP.

With this deal, control of the company will shift to the new investors.

Under the deal, Multiples Private Equity and its co-investors — including Mithun and Siddharth Sacheti (former promoters of CaratLane) — will acquire a 32% stake in VIP Industries.

In addition, an open offer has been announced, allowing the group to acquire up to 26% more stake, valued at approximately ₹1,437 crore.

If fully subscribed, the group’s total holding could rise to 58%.

Post-deal, Multiples PE will take over control of the company, while Dilip Piramal will continue as Chairman Emeritus.

The transition is expected to be collaborative — with the new investors bringing in capital, strategy, and retail experience to steer VIP into its next phase.

About VIP Industries

VIP Industries is India’s largest luggage manufacturer. The company is based in Mumbai, Maharashtra with over 50 years of experience of bringing innovative products with international design standards.

VIP Industries Diversified Product Portfolio

Source: Investor Presentation

The recent stake sale by its promoters is seen as a strategic reset aimed at reviving VIP’s legacy, re-energising the business, and reclaiming leadership in the luggage segment.

In recent quarters, the company has faced stiff competition — from Samsonite in the premium space and Safari Industries at the mass-market end.

VIP Industries is India’s No.1 organised luggage brand, and among the top 2 global players in the industry. A large part of its revenue comes from the Mass Premium and Premium segments.

Financial Snapshot

The last few quarters have been challenging for VIP Industries.

In FY25, the company’s revenue declined 3% YoY, and EBITDA margins fell by 480 bps to just 3.8%, pushing the company into losses for the year.

VIP faced a triple challenge:

• Weak demand
• Intense competition (especially from Samsonite and Safari)
• Internal operational hurdles

Outlook

VIP Industries has undertaken a deep balance sheet and operational reset in FY25, sacrificing near-term margins and growth to address channel inventory, working capital, and cost structure. 

The company is now pivoting back to growth, with a strong focus on premiumization, channel productivity, and margin recovery. 

The company’s management is realistic about structural changes in the industry, and they expect margin improvement from Q1FY26. 

As of March 2025, VIP Industries total stores stand at 404. 

VIP Industries even reduced its debt, with borrowings coming down by Rs 118 crore in FY25, with further Rs 125 crore debt reduction targeted for FY26.

All in all, the recent stake sale by promoters to Multiples marks a major leadership shift for VIP.

With the promoters stepping down, the entry of Multiples PE and experienced partners like the founders of CaratLane brings in a fresh vision, deep retail expertise, and a sharper execution strategy.

Yes, the company’s performance in recent quarters has been weak — but VIP’s business fundamentals remain strong, and the category stands to benefit from long-term trends like rising travel demand and premiumisation.

With fresh capital, new leadership, and focused execution, this deal could well be the starting point of VIP’s turnaround.

Happy Investing.

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