CHAPTER – 2

COMPANY
PROFILE
 A FUNDAMENTAL ANALYSIS OF FINANCIAL STATEMENT OF VIP
INDUSTRIES

COMPANY PROFILE

INTRODUCTION:

Established in 1968, VIP Industries Limited is amongst World’s leading

manufacturers and retailers of luggage, backpacks and handbags and an established leader in the
organised luggage market in India. In addition to our strong presence in India, We have a
growing global footprint with ourproducts supplied in over 45 countries.

VIP Industries is India's largest luggage manufacturing company which

manufactures luggage and travel accessories. It is based in Mumbai, Maharashtra, India and is
the world's second-largest and Asia's largest luggage maker.[7] The company has more than 8,000
retail outlets across India and a network of retailers in 50 countries.

VIP Industries Ltd. is a leading Indian company specializing in the manufacture and
distribution of luggage, travel accessories, and related products. Established in 1971 and
headquartered in Mumbai, VIP Industries has grown to become one of the largest luggage
manufacturers in Asia and ranks among the top 10 globally. The company has built a strong
reputation for its diverse portfolio of brands that cater to various consumer segments, from
budget-conscious travelers to luxury seekers.
 VIP Industries Ltd is a prominent Indian company known for its expertise in
manufacturing and marketing travel and fashion products. Established in 1971, VIP Industries
has grown to become one of the largest luggage makers in Asia and is recognized globally for its
quality and innovation in travel gear.

The company's product range includes a diverse portfolio of luggage, bags,

backpacks, and travel accessories catering to various consumer segments. VIP Industries is
renowned for its iconic brands such as VIP, Skybags, Carlton, Aristocrat, and Alfa, each catering
to different market preferences and demographics.

With a strong emphasis on design, functionality, and durability, VIP Industries has
built a reputation for delivering products that combine style with utility. The company has also
expanded its presence beyond India, establishing a significant international footprint in over 60
countries.

Headquartered in Mumbai, India, VIP Industries continues to innovate and adapt to

evolving consumer needs, maintaining its position as a leader in the travel and luggage industry
both domestically and globally.

HISTRORY:

The history of the company goes back to the year 1970. Since then, the
company has recorded a sale of around 10 crore (100 million) pieces of luggage
worldwide Formerly, the company was known by the name Aristo Plast VIP Industries and it
was incorporated in 1968. The company consisted of two wholly owned subsidiary companies,
namely Blow Plast Retail Limited V.I.P. Industries Bangladesh Private Limited V.I.P. Industries
BD Manufacturing Private Limited and V.I.P. Luggage BD Private Limited.

VIP Industries was founded in 1971 by Dilip Piramal and his brother, G.K.
Piramal, in Mumbai, India. The company was established with the vision of producing world-
class luggage and travel products for the Indian market.

VIP Industries focused on manufacturing sturdy and affordable suitcases,

catering primarily to the middle-class segment of India's burgeoning economy.  In addition to
dominating the Indian market, VIP Industries began to expand its footprint globally. It exports its
products to over 50 countries and has a presence in international markets across Asia, the Middle
East, Africa, Europe, and the Americas.
 VIP INDUSTRIES LTD

TRADED AS BSE: 507880

NSE: VIPIND

INDUSTRY LUGGAGE

FOUNDED DILIP PIRAMAL

HEADQUARTERS MUMBA,I MAHARASHTRA ,

INDIA

AREA SERVED WORLDWIDE

KEY PEOPLE DILIP PIRAMAL

(CHAIRMAN)

NUMBER OF EMPLOYEES 5000

SUBSIDIARIES SKYBAGS
CARLTON
CAPRESE
ARISTOCRAT
  TYPES OF THE BAGS :

VIP Industries offers a wide range of bags catering to various needs and preferences.
Here are some of the types of bags typically offered by VIP Industries:

1. Luggage Bags:

Including suitcases, trolley bags, and travel duffels, designed for

different travel purposes ranging from short trips to long vacations.

2. Backpacks :

Ideal for daily use, commuting, school, or travel, VIP's brand Skybags is
well-known for its trendy and durable backpacks. They come in different capacities and designs
to suit different preferences.
 3. Handbags and Shoulder Bags:

These include fashionable handbags and shoulder bags

suitable for both casual and formal occasions. They often feature stylish designs and practical
features.

4. Business Bags:

Including laptop bags, briefcases, and executive bags designed for

professionals needing to carry laptops, documents, and other business essentials.

5. School Bags :

Specifically designed for school-going children and teenagers, these

bags from Skybags and VIP brands prioritize durability, comfort, and style.

VISION :
To be the global leader in the travel product business

MISSION:
building enriching partnership, pride of leadership and delightful experiences
through innovation in all that we do.

BRANDS :

 Aristocrat
 Alfa
 Caprese
 Carlton
 VIP Bags
 Skybags
 OBJECTIVES:

VIP Industries, a prominent luggage and travel accessories company based in India, typically
aligns its objectives with the following key goals:

 Market Leadership:

VIP Industries aims to maintain or achieve leadership in the Indian

market for luggage and travel accessories. This involves expanding market share, outperforming
competitors, and staying ahead in terms of innovation and customer satisfaction.

 Profitability:

Like any business, VIP Industries focuses on generating sustainable

profitability. This includes managing costs effectively, optimizing pricing strategies, and
maximizing revenue streams from its product portfolio.

 Product Innovation and Quality:

VIP Industries places a strong emphasis on product

innovation and quality. They aim to continuously improve existing products and introduce new
designs that meet evolving consumer preferences and technological advancements.

 Customer Satisfaction:

Ensuring high levels of customer satisfaction is a critical objective for

VIP Industries. This involves providing excellent customer service, maintaining product
reliability, and responding effectively to customer feedback and complaints.

 Brand Development:

VIP Industries aims to strengthen its brand both domestically and

internationally. This includes enhancing brand awareness, perception, and loyalty through
marketing initiatives, partnerships, and consistent brand messaging.

 Sustainability:

Increasingly important in today's business environment, VIP Industries likely

has objectives related to sustainability. This may involve reducing environmental impact,
adopting eco-friendly materials and manufacturing processes, and contributing positively to
communities and stakeholders.
 Expansion and Growth:

VIP Industries may have objectives related to geographical

expansion into new markets, both within India and internationally. This could include strategic
partnerships, acquisitions, or establishing new distribution channels.

Board of directors:

1. Mr. Dilip G. Piramal – Chairman

2. Ms. Radhika Piramal – Executive Vice Chairperson

3. Neetu Kashiramka – Managing Director

4. Mr. Amit Jatia

5. Ms. Nisaba Godrej

6. Mr. Tushar jani

7. Mr. Ramesh Damani

8. Dr. Suresh Surana

9. Mr. Ashish saha – Executive director

10. Mr. Manish Desai – Chief Financial Officer

Milestones :

1971 – at Nasik, the company's manufacturing factory was commissioned

1982 – at Jalgaon, a new manufacturing facility was inaugurated.

1983 – introduction of new technology, known as the NR mechanism, which kept the
bags closed in an upside-down position.

1986 – set-up of a new manufacturing unit at Nagpur and introduction of a padded

handle on the bags.

1989 – the company introduced a new brand by the name Alfa.

The dual-action lock was introduced in the bags.

1993 – at Sinnar a new manufacturing facility was set up.

1995 – the heat-sealing method was introduced. Also, the dual-material dimpled
bumper was introduced, allowing for the rough usage of luggage.

1998 – the vertical access feature was launched.

2000 – similarly, other technologies such as the cable lock were also introduced. Soft
luggage inside hard luggage i.e. Convipack was introduced by the company.

2002 – the paper frame and handle-locking mechanism were introduced.

2003 – the FM radio in the luggage category was launched.

2004 – the company acquired Carlton and extended its presence in the global market to
around 65 countries.

2011 – four-wheel bag technology was used for the first time in India.
Awards
 Rajiv Gandhi National Quality Award – 2003

 Golden Peacock Innovation Award – 2004

Spot analysis :

A spot analysis, often referred to as a SWOT analysis (Strengths,

Weaknesses, Opportunities, Threats), is a strategic tool used to evaluate the internal and external
factors affecting a business or organization. Here’s how it can be applied to analyze competitors
in the VIP industry:

1. Strengths:
o Exclusive Services: Competitors in the VIP industry typically excel in offering
highly personalized and exclusive services tailored to the needs of high-profile
clients.
o Brand Reputation: Established brands in luxury sectors have strong brand
recognition and a reputation for quality and service excellence.
o High Customer Loyalty: VIP clients tend to be loyal if they receive exceptional
service and personalized attention.

2. Weaknesses:
o High Cost Structure: Providing exclusive services often comes with high
operational costs, which can impact profitability.
o Limited Target Audience: The market for VIP services is niche, limiting the
potential customer base compared to mass-market industries.
o Vulnerability to Economic Changes: VIP spending can be discretionary and
sensitive to economic downturns.

3. Opportunities:
o Growing Affluence: The number of high-net-worth individuals worldwide is
increasing, providing a larger potential customer base for VIP services.
o Expansion into Emerging Markets: There is an opportunity to expand services
into emerging markets where wealth accumulation is on the rise.
o Diversification of Services: Introducing new and innovative VIP services can
attract new clients and retain existing ones.
 4. Threats:
o Intense Competition: Competition in the VIP industry is fierce with numerous
luxury brands and service providers vying for the attention of affluent clients.
o Changing Consumer Preferences: VIP clients' preferences and expectations can
change rapidly, requiring constant innovation and adaptation.
o Regulatory Challenges: Regulations related to luxury goods and services can
impact operations and increase compliance costs.

By conducting a spot analysis (SWOT analysis) on competitors in the VIP industry, businesses
can identify their strengths to leverage, weaknesses to address, opportunities to pursue, and
threats to mitigate. This helps in developing effective strategies to maintain or enhance
competitive advantage in the luxury market.