VIP Industries Limited has informed the Exchange about Investor Presentation
29th January, 2025
BSE Limited Phiroze Jeejeebhoy Towers, Dalal St, Kala Ghoda, Fort, Mumbai – 400001
Code No. 507880
National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Code – VIPIND
Subject: Presentations made/being made to analysts / institutional investors
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor presentation Q3 FY 25 being made by the Company to the analysts/ institutional investors.
Kindly take the same on record.
Thanking you,
Yours faithfully,
For V.I.P. Industries Limited
Ashitosh Sheth Company Secretary & Head – Legal ACS 25997
Encl. As above
INVESTOR PRESENTATION Q3FY25
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Disclaimer
Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.
The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own research/investigation and analysis of the Company and the data set forth in this information. The Company makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company.
While we have made every attempt to ensure that the information contained in this presentation has been obtained from reliable source, the Company is not responsible for any errors or omissions, or for the results from the use of this information. All information in this presentation is provided on "as is" basis with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information and without warranty of any kind, express or implies including but not limited to warranties of performance for a particular purpose. In no event will the Company its Directors, legal representatives, agents or employees thereof be liable to anyone for any decision made or action taken by relying on data/information in this Presentation.
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Index
Company Overview
Q3 FY25 Financial Performance
Brands, Channels & Categories
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Company Overview
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Undisputed leader in an Oligopolistic Indian Luggage Industry
Established in 1968
#1 In the organized luggage space
Present in multiple luggage categories across price points
10 Own Manufacturing Facilities in India & Bangladesh
Servicing customers through ~14,000 Point of Sales across ~1400 towns
~8371 employees*
5 *~3564 at Bangladesh
Milestones
Leveraging our rich heritage & strong legacy
Revenue Journey (Rs. In Cr.)
Aristocrat Acquisition
Caprese Launch
Skybags Launch
Aristocrat Restage
Bangladesh Operations
1785
1714
Strategic Shift from China Sourcing To Own Mfg
2245
2082
Carlton Acq China Ofc
1416
1283
1234
1290
Aristo Plast Pvt Ltd
297
287
305
296
321
331
8 6 9 1
567
521
614
439
1064
988
868
854
745
619
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24
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Board Of Directors
is a Commerce graduate and an He experienced industrialist who has pioneered the luggage industry in India. He has an experience of more than 50 years in the luggage industry
Mr. Amit Jatia Independent Director
She a graduate from Oxford University and has done an MBA from the Harvard Business School. She has over 10 years of experience in managing and strategizing the business of luggage, bags and other travel accessories.
Mr. Ramesh Damani Independent Director
Mr. Dilip Piramal Chairman
Ms. Radhika Piramal Executive Vice Chairperson
She is a qualified Chartered Accountant and has over 26 years of experience across varied industries. At VIP industries, she is responsible to build the organization growth strategy and lead execution across all business verticals & regions globally
He holds Post Graduate Diploma in Dye & Moulding from Central Scientific Instruments Organizations, INDOSWISS Training Centre, Diploma in Instrument Technology and has over 40 years of experience luggage industry. At VIP Industries, he heads India manufacturing and New projects
in
Mr. Tushar Jani Independent Director
Dr. Suresh Surana Independent Director
Ms. Payal Kothari Independent Director
Ms. Neetu Kashiramka Managing Director
Mr. Ashish Saha Executive Director
He has a degree in Business Administration from the Marshall School of Business, Los Angeles. He has attended several sessions of the YPO / Harvard President’s Program at HBS. He has over 26 years of experience in the QSR industry.
He is a Commerce graduate and a post-graduate in from Business Administration, Marketing California State University, Northridge. He has over 20 years of experience in security market.
He is a Science graduate. He is a founder of Blue Dart Courier Services, Blue Dart Express Limited, Blue Dart Aviation Limited and Express Industry Council of India. He has over 40 years of experience in the Shipping and Transport Industry. He has pioneered inland logistics of sea freight containers.
He holds a Doctorate in Business Administration, is a Fellow Member of ICAI and a law graduate from University of Mumbai. He has established RSM India and under his leadership it has become the largest first-generation home-grown accounting, tax and consulting group in India
Ms. Payal Kothari, holds a Bachelor degree in Economics and is a practicing advocate having 29 years of experience; specializes in litigation & real estate matters amongst others. Also holds Certification from Harvard Law School. 7
Strengthened Senior Management Team
Akash Shukla Vice President - Human Resources 22 years of experience across varied industries including luggage
Anjan Mohanty Chief Executive Officer – Bangladesh 25 years of experience in the apparel industry
Ashish Saha Executive Director & Sr. Vice President – India Manufacturing & New Projects 44 years of experience in the luggage industry
Dipti Shah Vice President – Marketing 20 years of experience across varied industries
Manish Desai Chief Financial Officer 25 years of experience across varied industries
Praful Gupta Vice President - Sales & CRM 24 years of experience in the FMCG & luggage industry
MVH Sastry Vice President - Procurement & Supply Chain 23 years of experience in FMCG industry
Sushant Junnarkar Vice President - E-commerce & Caprese 23 years of experience across industries, and in digital domain for FMCG, fashion & beauty
Vasant Dewaji
Design Head 32 years of experience across varied industries
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VIP Power Brands : High Equity, targeted at distinctive opportunity spaces
Proposition
Innovative & Caring partner that makes every trip comfortable, safe and enjoyable
Trendy , colorful luggage brand that helps you get noticed
Partner every young middle Indian in this journey with products that are built to outperform and outlast
Hello Holidays
Move in Style
Unpack Your Dreams
Brand Print
BRANDS FROM THE HOUSE OF VIP INDUSTRIES
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VIP Power Brands : High Equity, targeted at distinctive opportunity spaces
Proposition
Luggage Partner For Young Visionaries & Leaders
Avant-garde range of handbags & accessories for every woman who wishes to announce her arrival in life
The New Face Of Business
All That A Girl Can Be
Brand Print
BRANDS FROM THE HOUSE OF VIP INDUSTRIES
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Diversified Product Portfolio
HARD LUGGAGE
SOFT LUGGAGE
BACKPACKS
BUSINESS SATCHELS
DUFFLE BAGS
LADIES’ HANDBAGS
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Financial Overview
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Performance Highlights (Consolidated)
Q3 FY25 Financial Performance Snapshot
3803 (‘000) Volume 13.3%
Rs. 501 Cr. Revenues -8.3%
47%* GP % -9.2%
6.2% EBITDA % -3.8%
Rs. -17 Cr. PBT# NA
Over Q3 FY24
-14%
-7.9%
+1.5%
+6%
NA
Over Q2 FY25
9M FY25 Financial Performance Snapshot
13122 (‘000) Volume 14.1%
Rs. 1684 Cr. Revenues -3%
45.5%* GP % -8.2%
4.9% EBITDA % -6.2%
Rs. -58.6 Cr. PBT# NA
Over 9M FY24
e g d i r B A D T I B E
EBITDA % - Q3 FY 24
Decrease in Gross Margin
Decrease in Employee Cost
Decrease in Advt Expenditure
Increase in Other Expenditure
EBITDA % - Q3 FY 25
10.0%
-9.2%
1.8%
3.3%
0.3%
6.2%
d n e r t
C G
Quarter
Q3 FY24
Q4 FY24
Q1 FY25
Q2 FY25
Q3 FY25
GC %
55.8%
50.0%
44.3%
45.1%
46.6%
• Volume growth continued to be strong at 13% for Q3
and 14% for 9M FY25
• Revenue degrowth mainly on account of
• Stiff competition on pricing and SL upright
liquidation resulting in reduced ASPs
• Price support for on-line channels netted off in the current quarter and year to date result – Rs. 17 crs and Rs. 66 crs respectively.
• Sequential improvement in Gross margins & EBTIDA
of 1.5% & 6% respectively
• Gross margins impacted YoY mainly on account of :
• Lower realization owing to brand and channel
mix.
• SL upright inventory liquidation at reduced
margins.
•
Impacted Bangladesh profits due to reduced capacity utilization.
• EBITDA impacted YoY due to lower gross margins.
• Tight control on procurement along with focused inventory
approach on liquidation resulted reduction of Rs. 224 crs over March 24.
in
• Net Borrowing has been reduced by Rs. 86 crs in line
with overall debt reduction plan.
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^growth calculated on gross revenue *net off other income #after exceptional item
Market Share
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
37%
27%
37%
Historic Market Share %
38%
27%
36%
32%
29%
38%
29%
-9%
28%
30%
40%
+7%
+2%
34%
38%
Q2FY24
Q3FY24
Q4FY24
Q1FY25
Q2FY25
VIPIL
SAFARI
SAM
Relative Market share based on reported results of 3 Companies
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Q3 & 9M FY25 Financial Performance - Consolidated
Rs. In Cr.
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ParticularsDec-24Sep-24Dec-23Dec-24Dec-23Revenue from Operations 501 544 546 1,684 1,729 Other Income 2 3 3 7 8 Total Revenue 504 547 549 1,691 1,737 COGS 268 299 241 922 804 Gross Contribution 236 248 308 769 932 GC Margin (without Other Income)46.6%45.1%55.8%45.2%53.5%Employee Benefits expenses 54 58 69 171 201 Other Expenses 151 190 184 515 537 Total Expenses 205 248 253 686 739 EBIDTA 31 0 55 83 194 EBIDTA Margin6.2%0.1%10.0%4.9%11.1%Depreciation 30 30 27 89 71 EBIT 1 (29) 28 (6) 122 Finance Cost 18 20 15 56 38 Profit before Exceptional items (17) (49) 13 (62) 84 Exceptional items Expense / (Income) (0) (4) - (4) (26)Profit before Tax (17) (46) 13 (59) 110 Tax (4) (13) 6 (17) 32 Profit After Tax (12) (33) 7 (41) 78 Quarter endedYear ended Key Financial Metrics – P&L
Revenue (Rs. Cr)
547
549
504
Gross Margin (Excl Other Income)
55.8%
46.6%
45.1%
Dec-24
Sept-24
Dec-23
Dec-24
Sept-24
Dec-23
EBITDA
PBT before Exceptional Item
6%
Dec-24
0%
Sept-24
10%
Dec-23
-17
Dec-24
-49
Sept-24
13
Dec-23
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Key Financial Metrics – Balance Sheet
Net Debt
485
411
Working Capital (No of Days)
279
120
138
110
Dec-24
Mar-24
Dec-23
Dec-24
Mar-24
Dec-23
Inventories
916
692
829
446
Borrowings
533
385
Dec-24
Mar-24
Dec-23
Dec-24
Mar-24
Dec-23
Brands & Categories
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Revenue Performance : Brands & Categories
Channel-wise Salience
General trade
Retail trade
Modern trade
E-Com
CSD CPC
Institutional
International
1
Q3FY24
Q3FY25
20%
10%
25%
20%
13%
10%
2%
18%
9%
24%
23%
11%
13%
2%
Brand-wise Salience
Carlton
VIP
Skybags
Premium & Mass Premium
Aristocrat + Alfa
Caprese
Q3FY24 Q3FY25
5%
25%
26%
56%
41%
3%
6%
24%
24%
54%
43%
3%
Category-wise Salience
Uprights
Hard Luggage
Soft Luggage
Duffel Bags
Backpacks
Ladies Hand Bags
Q3FY24 Q3FY25
79%
56%
23%
9%
10%
2%
76%
63%
13%
10%
11%
3%
Share of ecommerce & institutional channels increased YoY in line with focused growth efforts
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Carlton share of business increased with focused efforts
3
Carlton was the fastest growing brand for Q3
Hard luggage continues to be the largest category
Salience & growth calculated on gross revenue
Products & Brands Strengthening
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Building Carlton’s salience through print, outdoors & digital media
Print inserts in Economic Times to drive brand awareness through premium international imagery
Outdoor installations across 4 key cities to drive salience
Product led digital communication
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Building Carlton’s new retail identity & presence
New design identity for Carlton to enable expansion of EBOs & build stronger credentials
Carlton has a new address @ Colaba Mumbai !
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Premiumization with VIP & Skybags
First ever! Launch of 7000+ price point in Skybags with exceptional trade & consumer acceptance
Happy customers
Mall activations for consumer engagement
Vibrant, International imagery
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Premiumization with VIP & Skybags
First ever! Launch of 7000+ price point in VIP to exceptional trade & consumer acceptance
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Fashion First With Backpacks & Ladies Handbags
Focus on trending themes Asian-Anime | Girl Power | Gaming
Need Based Innovation: Insulated Tiffin Compartment
The Kiara Charisma Continues
Successful roadshows for FY25 collection
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For Further Information Contact:
VIP Industries Limited Mr. Manish Desai – Chief Financial Officer Email: manish.desai@vipbags.com
Adfactors PR Pvt. Ltd. Snighter Albuquerque/ Pratik Patil Email: snighter.a@adfactorspr.com/ pratik.patil@adfactorspr.com
Mobile: 9819123804 / 8291510324
5th Floor, DGP House, 88-C, Old Prabhadevi Road, Mumbai – 400025
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Thank you
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