New Delhi: Luggage producer VIP Industry will invest Rs 200 million in 2024 for expansion make possibility, the company announced in a BSE filing on Monday. In fiscal year 2023, the brand has implemented an investment of Rs 100 crore CAPEX to create technically advanced plants in India and Bangladesh.
For the quarter ended March 31, 2023, VIP reported a 27% increase in its sales to Rs 451 crore. On a year-over-year basis, the company saw a 61% increase in net sales to Rs 2,082 crore. EBITDA and its profit after tax (PAT) stood at Rs 331 crore and Rs 152 crore for the period under review.
“The company posted 61% growth in FY23 compared to FY22, supported by strategic investments and expanded execution. We have also enhanced our gross margin despite increasing value segment prominence to 38% from a baseline of 25% and the strong input cost inflation witnessed in first half of the year,” said Anindya Dutta, MD, VIP Industries in a prepared report. declare.
He added that the company’s improvement in gross margin in the fourth quarter reflected the brand’s enhanced cost-effectiveness in the value chain and shift to in-house production, further supported by a reduction in costs. input cost.
in terms of retail expansion, VIP plans to reach 800 exclusive brand stores by fiscal year 2024. The company will plan to focus on tier 2 and other cities. “As part of our growth strategy, we aim to be in every town with a population over 50,000 by the middle of next fiscal year.”
VIP Industries is the second largest baggage marker globally. Its brands include VIP, Skybag, Carlton, Noble and Caprese.