VIP Industries aims 9-10pc growth in FY'20 amid slowdown

VIP Industries Ltd on Friday said it is targeting a growth of 9-10 per cent in the 2019-20 fiscal, despite economic headwinds slowing demand.

"Slowdown has started to pinch us... We will be happy if we register 9-10 per cent growth this fiscal," Managing Director Sudip Ghose told PTI.

He added that the company is expecting growth at a time when many other sectors are staring at de-growth.

VIP Industries grew at 26 per cent last fiscal to Rs 1,784 crore, and at 9 per cent in the first quarter of 2019- 20.

Ghose said revival in demand may take another two- three quarters, but is betting on the upcoming festive season to push sales.

The company will soon launch women-only soft and hard luggage variants to remain afloat in the Rs 4,000-crore organised luggage industry.

It also opened two new VIP Lounge stores in Kolkata on Friday. The company has 600 showrooms across the country, out of which 58 are in West Bengal.

"East is an important market for VIP, where it grew by 27 per cent and commands 60 per cent marketshare," company officials said.

After the introduction of GST, the Rs 10,000-core un- organised luggage industry is gradually shifting toward the organised sector, they added.