Samsonite Gets Court Stay On Marketing Of Vip Luggage

The stage is set for a legal battle between the Rs 441.87-crore VIP Industries, the world's second largest luggage maker, and Samsonite India Pvt Ltd (SIPL), a 60:40 joint venture between Samsonite Corporation of US and Mumbai-based Tainwala Chemicals and Plastics.

Samsonite India filed a case against VIP Industries in the Delhi High Court and obtained an injunction on Thursday, restraining the latter from making or marketing its Odyssey GLX range of suitcases.

With this range, VIP planned to tap the low volume, high margin premium end of the luggage market in the country.

SIPL sources said that the Odyssey GLX brand is a copy of one of their System Four Deluxe brand. Although Samsonite has not launched the range in India, it was introduced worldwide in November 1995.

 

Ramesh Tainwala, managing director of Tainwala Chemicals and Plastics, confirmed the injunction, but said, We are not supposed to comment upon the matter since it is sub judice.

Dilip Piramal, chairman of VIP Industries said, We have not yet received the court order. There are rumours of an injunction having been passed against us and it is most probably true.

But, the injunction has been passed ex-parte. Only after looking at the order, we will take retaliatory action. In January, VIP had introduced three lines of premium products: the Odyssey GLX and MTX suitcases, BL and BM briefcases and suitcases and Skybag's Icon range of soft luggage, totes and wheeled cabin baggage.

Samsonite is the world leader in the luggage industry and had acquired the American Tourister company in the early 90s. Its System Four Deluxe brand contributes around $100 million to its global sales turnover of $700 million.