How VIP is trying to shed its baggage | Mint
Managing director Neetu Kashiramka has a three-year plan to improve margins and boost revenues before the company revisits a sale process. Can she make it?
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VIP Industries' New Managing Director Aims to Revive the Brand's Fortunes
- VIP Industries, a once-dominant Indian luggage brand, has faced decline in margins and market share.
- The company's promoters considered selling the business but have put the plan on hold to focus on improving margins.
- Neetu Kashiramka, the new managing director, aims to transform the organization and increase profitability.
Market Share and Product Mix Challenges for VIP
- VIP has been losing market share to competitors over the past decade.
- The company's market dominance has decreased from 48% to 37% in just five years.
- Customers perceive VIP's products as irrelevant, leading to a decline in sales.
VIP Luggage Faces Challenges and Plans for Future Growth
- VIP Luggage is facing a major inventory problem with soft luggage, leading to a loss of ₹2-3 crore per month.
- To cut costs, the company has laid off 4,000 workers at its Bangladesh factory.
VIP Industries' Revival Strategy and Challenges
- VIP Industries has lost market share to competitors over the past decade.
- The company aims to regain market share through a revival strategy.
- VIP is focusing on making its products more premium and introducing new features.
- The company has stopped producing low-demand products and is bringing in a new designer to create innovative products.
- VIP is targeting a 15-20% compounded annual growth rate in revenue.
Future Strategy and Transformation Plans of VIP
- VIP is planning to pivot away from its traditional manufacturing-heavy approach.
- The future strategy emphasizes bolstering research and development efforts and launching innovative products.
- Kashiramka, the CEO, wants to focus more on the front-end rather than the back-end, which was a key mistake in the past.
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VIP Industries' Revival Strategy and Future Plans
- VIP Industries has experienced a decline in margins and market share.
- Promoters have put plans to sell the business on hold to focus on improving margins.
- Neetu Kashiramka, the new managing director, aims to transform the organization and increase profitability.
- Efforts are being made to improve product quality and add premium features.
- VIP Industries has lost market share to competitors over the past decade.
- The company plans to regain market share through a revival strategy.
- VIP is focusing on making its products more premium and introducing new features.
- The company has stopped producing low-demand products and is bringing in a new designer for innovation.