New Delhi: Luggage maker VIP Industries will invest Rs 200 crore in FY2024 to expand its manufacturing capabilities, the company announced in a BSE filing on Monday. In FY23 the brand deployed Rs 100 crore CAPEX investment to create technically advanced factories in India and Bangladesh.
For the quarter that ended March 31, 2023, VIP reported a 27 per cent increase in its sales to Rs 451 crore. On a yearly basis, the company saw a rise of 61 per cent in net sales to Rs 2,082 crore. Its EBITDA and profit after tax (PAT) stood at Rs 331 crore and Rs 152 crore for the period in review.
“The company achieved a growth rate of 61% in FY23 as compared to FY22, backed by strategic investments and expansion executions. We have also enhanced our gross margins despite an increase in value segment salience to 38% from a base of 25%, and sharp input cost inflation witnessed in the first half of the year,” said Anindya Dutta, MD, VIP Industries in a prepared statement.
He added that the company’s improvement in gross margins during quarter 4, is reflective of the brand’s enhanced cost efficiencies across value chain and shift to in-house manufacturing, further supported by softening of input costs.
In terms of retail expansion, VIP plans to achieve the mark of 800 exclusive brand outlets by FY24. The company will be planning to focus on tier 2 and beyond cities. “As part of our growth strategy, we aim to be present in every town with a population of over 50,000 by the middle of the next financial year.”
VIP Industries is the second largest luggage marker globally. Its brands include VIP, Skybags, Carlton, Aristocrat and Caprese.