Private equity fund Multiples Alternate Asset Management and Samvibhag Securities have signed a definitive agreement to acquire up to 32% in Indian luggage maker VIP Industries from the founding Piramal family.
The control transaction will see VIP’s long-time promoter, Dilip Piramal, step down from active management. He will remain on the board as Chairman Emeritus, while Multiples will assume operational control of the firm.
The $172-million open offer, priced at Rs 388 per share, will be made by Multiples PE Fund IV and its GIFT City-based vehicle.
“This marks an important step toward reviving the company’s strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years” Piramal said.
From being a mere commodity, the luggage bag has evolved into a fashion accessory with younger travellers looking for chic designs, lighter materials, and features such as smart trackers and anti-theft features. Moreover, as disposable incomes rise and urbanisation speeds up, the middle class has loosened its purse strings and is now willing to pay for high-quality travel products, including luxury luggage.
India’s luggage industry includes deep-pocketed and established players such as VIP, American Tourister, Samsonite, and Safari and smaller players such as Uppercase, Rover, Wildcraft, and Assembly.
Safari Industries and VIP Industries, both listed players, are profitable. VIP Industries reported a consolidated net profit of Rs 54.3 crore for the year 2024, on a revenue of Rs 2,256.7 crore.
