VIP eyes 30% jump in topline growth, to target youth

Luggage-maker VIP Industries today said it is eyeing a 25-30% topline growth, besides strengthening of its position in segments such as handbags and backpacks, this fiscal.

"This year, we are looking at Rs 975 crore revenues," VIP Industries Chairman Dilip Piramal told PTI here, adding that the firm is now targeting the youth.

"The problem is that when you are an established company, the youth are not able to ide

ntify with the brand. So we are now targeting them," he said.

The company had roped in Bollywood actor John Abraham as the brand ambassador for its skybags and introduced Carlton, the premium fashion luggage brand, recently. The company's revenue for FY11 stood at Rs 758 crore, while its profit was Rs 89 crore.

As part of its expansion plans, VIP will launch ladies' handbags by the end of the fiscal.

"We are expanding by launching ladies' handbags during the last quarter of this fiscal," he said.

However, he refused to share details about the price range or revenue expected from the new segment, saying, "We think it is premature to talk about it. We will announce the details in due course."

He said the company has not decided on a brand ambassador for the range. The ladies' handbag market is estimated to be worth around Rs 1,500 crore, with some key players being Hidesign and Baggit.

The company enjoys a 58% share of the Rs 1,300 crore organised or branded luggage market. The luggage market is valued at Rs 2,700 crore, with both the organised and unorganised sectors contributing equally.

"Our market share is at 58% and we will be happy to maintain it," Piramal said.