VIP to add 41 exclusive retail outlets in 2006

VIP Industries has decided to add 41 exclusively-owned retail outlets by December, scaling up the number to 110, for an investment of Rs 4 crore.

The stores cover a combined area of more than 100,000 sq ft. In addion, the company has a network of 2,000 dealership-based outlets.

The company has also given its logo a facelift. VIP logo will henceforth be accompanied by an image of the globe with 'V' embedded in it.

"While 'globe' represents the world and 'V' stands for the joy and freedom from the stress of travel," said Dilip G Piramal, chairman, VIP Industries Ltd.

The company, with its two brands 'Carlton' and 'Alfa', controls about 60 per cent share of the organised hard and soft luggage market in the country.

Eighty per cent of the Rs 700-crore soft luggage market in India is cornered by unorganised players. The hard luggage market is worth Rs 840 crore with organised players controlling 55 per cent of the segment.

Carlton focuses only on soft luggage for the high-end market, while Alfa is predominantly a hard luggage competitor in the economy segment. VIP on Monday launched an array of fashionable luggage in the price range of Rs 2,500 to Rs 5,000.

VIP would expand its retail base through its exclusive outlets rather than dealership-based ones. "With people getting more fashionablethe soft luggage market showing good growth, it is essential to have your own outlets," said Sudhir Jathia, director, VIP Industries.

VIP expects to sell 4.5 million units of luggage in the current financial year. It achieved a topline of Rs 305 crore for the year ended March 2005.

The company is expecting to grow at 10-15 per cent this year, said Jathia.