The company has appointed investment bank Arpwood to help it with its share sale, people said, anonymously. “Early. We will have to understand the progress of this deal,” said one person quoted above.
Last year, the company held senior talks with global private equity firm Advent International to sell controlling shares, Mint Reported. The second person mentioned above: “The deal was not conducted for various reasons, including mismatch in valuations.”
The deal will be signed soon, nearly a year after Piramal-led promoters decided to cut shares. The first person quoted above said: “This deal has been restored, and advent is also the leader.”
Queries sent by email to disseminate piramal did not elicit any response. An ARPWOOD spokesperson declined to comment.
Read also | How VIPs try to get rid of luggage
Mint The first report is the Promoter’s plan to sell the controlling shares of the luggage manufacturer in October 2023.
According to data available on the exchange, promoters own more than 50% of the VIP industry, namely owners of luggage brands such as VIP, Carlton and Skybags. The market value of VIP is ₹404.898 billion ₹2024 million.
VIP services
Since November 2024, the company’s stock has been nearly 40.11% so far. The company’s stock closed ₹285.10 per share, rebounding from Thursday’s 52-week low. The benchmark Sensex rose 7.2% during the same period.
The third person mentioned above said: “Having contacted top PE funds locally and globally,” he added that since the transaction involves subsequent public offers to the company’s public shareholders, it would be a complex offer. “It’s a great brand that’s fighting new immigrants in an already crowded space,” the person said.
Read also | Will Vijay Kedia bets on VIP Industries be expensive?
According to a new report from Statista, the Indian luggage and luggage market revenue is $15.04 billion. The annual growth rate of the market is expected to reach 5.02% (CAGR 2024-2029). 87% of the baggage and luggage market sales are expected to come from non-luxury markets. Nevertheless, the income of India’s growing middle class and growing desire to travel is still increasing, driving a surge in demand for premium luggage and luggage.
VIP Industries is a brand synonym for aspiring Indian travelers in the 90s, much larger than its Indian competitors, except for Safari Industries. VIP Industries has a large market share in this fast-growing industry, providing PE companies with lucrative opportunities to take advantage of the growing demand for travel-related products from India’s increasingly mobile middle class.
Over the years, VIP has also developed organically and inorganically. It acquired the Carlton brand in London in 2004 and merged with Noble Baggage Ltd in 2007.
According to Equitymaster, VIP Industries reported ₹The quarter ended December was 124 million, while the profit was ₹72 million a year ago. Net sales fell 8.3% ₹5.011 million. VIP’s profit fell 64.4% year-on-year in the year ended March 2024 ₹543 million. The company’s revenue grew 7.8% ₹FY22.45 billion FY24.
Read also | VIP Industries requires a premium
competition
India’s travel and luggage space is heating up as new startups emerge in spaces challenging incumbents. Earlier this year Mint Report on how new era direct-to-consumer brands such as Mokobara, Assembly, Nasher Miles, Icon and Uppercase are getting funded from venture capitalists and are seeking to undermine the space.
The organized luggage market in India is dominated by the VIP industry, Samsonite and Safari, accounting for about 40% ₹According to a report by global analytics firm Crisil last year, the luggage industry is 1.5 billion crore. Mainly this segment thrives in the wave of the pandemic. According to the 20024 ICICI Securities Report, VIP has nearly 44% market share in the organized luggage category.
