Uttaranchal plant operational by April
VIP wouldincrease total retail area to one lakh sq. ft from 75,000 sq. ft by March 2007.
Files caseagainst two retailers for unauthorised use of logo.
New Delhi, March 24
Luggage manufacturer VIP Industries is planning to increase its retail presence across the country. The company would add another 40 to 50 exclusive outlets.
"We plan to open another 40 outlets next fiscal with an investment of Rs 4 crore," said Mr V.S. Mani, Chief Financial Officer, Blow Plast Ltd (the marketing arm of VIP Industries).
At present, the company has 88 retail stores, which Mr Mani added would cross 100 by the end of this fiscal.
Post-expansion, VIP would increase its total retail area to one lakh sq. ft from 75,000 sq. ft by March 2007. Mr Mani said, "the retail business accounts for 12.5 per cent of total business and is expected to grow to 25 per cent in the next three years."
The company, whose new plant in Uttaranchal would be operational by April 2006, is looking at a manufacturing capacity of two million units per annum.
"The new plant, set up with a capital expenditure of Rs 20 crore, would be operational by April 2006," Mr Mani said.
Unauthorised logo use
In an attempt to put an end to the unauthorised use of its trademark logo, VIP recently filed a suit against two Delhi-based retailers for using its trademark on their signboards.
``Lots of retailers use our logo without actually realising that they are committing a civil crime,'' said the Company Secretary, VIP Industries Ltd, Mr Rajesh Doshi. "The company reserves the right to institute proceedings to enforce its valuable Intellectual Property Rights," he added.
When asked about the revenue loss to the company due to such practices, Mr Mani said, "It is not possible to gauge the actual loss in terms of rupees... Nevertheless, it could add about 15 per cent more in the turnover if we could put an end to this. We expect to grow about 15 per cent this year and this campaign should be of significant help,'' he said.Related Stories:
Blow Plast to expand retail presence