The Hindu Business Line : VIP Ind to re-launch `Skybag'

V.I.P. Industries Ltd, the country's largest luggage maker, will re-launch its `Skybag' and offer Alfa and Aristocrat brands in the below Rs 1,500 range, for the rapidly growing hypermarket and malls across the country.

The Rs 400-crore turnover company hopes to generate Rs 30-40 crore during the financial year 2007-08, against the Rs 7 crore expected in the current fiscal from this segment. Skybag, stopped for the last three years, and the other two existing products would be available from April, according to Mr Sudhir Jatia, Director.

Announcing the opening of the company's 5th VIP Lounge here, Mr Jatia said from the existing 110 retail outlets, the company plans to reach a target of 175-200 in the next 18 months. At least 30 more outlets would be opened in the next four months, he said.

To launch Carlton

With 60 per cent of the market share in the country, VIP Industries plans to launch its premium Carlton brand in the next 3-6 months in the country. Its other premium brand Delsey is already available. Both these brands are targeted for the export markets, where the company hopes to earn Rs 80 crore next fiscal, up from Rs 60 crore expected this fiscal.

Mr Jatia said both the premium (Rs 4,000 plus) and below Rs 1,000 segments in the luggage were showing robust growth rates. "Our strategy would be tailored to increase our market share in all segments, but reach at least 100 tier-II cities. A major campaign is expected to be launched soon for this," he added.

On the joint venture in Bangladesh — VIP Nitcol Industries, Mr Jatia said there is a relook at the terms with the partner, who has been with the company for the past three years. As for the merger of Blowplast Ltd & V.I.P. Industries, both under the Dilip Piramal Group, he said they were waiting for the nod from the High Court, Mumbai. The turnover of the merged entity would be in the range of Rs 475 crore.

Asked about the unauthorised use of trademark logo in New Delhi, Mr Jatia said the matter had been sorted out legally. A campaign would be run across the country to overcome this problem, he said, while stating that the issue had not cut into the company's business.

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VIP Ind to re-launch `Skybag'