VIP to position economy brands in hyper marts

VIP Industries Limited, India's largest luggage manufacturer, is planning to relaunch its Skybag brand and position its Alfa and Aristocrat economy brands in the emerging hyper markets in the country from April this year.

The company has already tied up with Metro Cash & Carry in this regard and is looking towards an annual sales turnover of about Rs 30- 40 crore through the new initiative.

VIP discontinued the sales of Skybag brand of soft luggage three years back but is now re-introducing it to cater to the needs of hyper market customers, company's director, Sudhir Jatia, said adding that the emergence of hyper markets would have a very positive impact on the luggage industry in the country.

The company is also aggressively expanding its retail network and is all set to add 70 exclusive showrooms across the country by the end of the current financial year.

It opened its fifth VIP Lounge in Hyderabad and 110th retail store in the country here on Wednesday. "We see retail as the growth driver for our premium brands and products," Jatia said.

According to Jatia, the company is aiming to increase the number of its exclusive retail stores to over 200 stores in the next two years. It is expecting that its retail business will account for 25 per cent of its turnover two years down the line from the existing 17 per cent.

Following the expected merger of VIP and Blow Plast Ltd, Jatia said the turnover of the combined entity in the current financial year would be about Rs 500 crore.