VIP Industries, India’s largest luggage and travel accessories manufacturer, is facing challenging times ahead, over the next two-three quarters. A possible move of the promoters selling their stake in the company is now likely to be delayed, by at least a year, a person aware of the development, said.
VIP has been losing market share to a smaller, but more aggressive, luggage rival, Safari Industries, for nearly five straight financial years. Safari, under its chairman and managing director Sudhir Jatia—a former director at VIP—has, in recent years, focussed on the mass market, increasing product designs and offering a new range of backpacks and laptop bags, besides strengthening the distribution channel.