Six years after acquiring UK's luggage brand Carlton, VIP Industries today said it will introduce products from the range in India in this quarter to strengthen position in the premium category.
VIP, which currently has Rs 48 crore debt, said it is also working on a plan to become-debt free within the next 18 months. It has also signed up boxer Vijender Singh as the brand ambassador to promote its Alpha brand of luggage.
"With Carlton we will be able to cater to the premium customer segment. The plan is to soft launch the brand in the third quarter and provide a further boost from April next year," VIP Industries Managing Director Radhika Piramal told reporters here.
Carlton products will be priced upwards of Rs 5,000 per unit. VIP Industries had acquired Carlton Luggage in 2004.
On the company's financials, Piramal said: "We have a debt of Rs 48 crore and we hope to become debt free in the next 12-18 months time."
Commenting on its domestic products, she said VIP is working on strengthening the Alhpa and Footloose brands.
"The focus right now is to aggressively promote other labels in the company's portfolio such as Alpha and Footloose by spending funds on marketing and advertising," Piramal said.
For Alpha, the company today announced boxer Vijender Singh as the brand ambassador to promote the product as safe and durable one.
"Even for Footloose, that is a casual lifestyle brand, we will engage in more brand building activities," she added.
To expand its retail presence VIP Industries is planning to open up to 60 stores every year. It currently has 400 stores, including company-owned and franchisee run.
"We will add 50-60 stores every year entailing an investment of up to Rs 5 crore from the company," Piramal said.
As per industry estimates, the total Indian luggage market currently stands at Rs 3,300 crore, of which the branded segment is estimated at Rs 1,200 crore. VIP claims to be the market leader with an annual turnover of about Rs 700 crore and competes with company's such as Samsonite.
VIP recorded 103 per cent jump in net profits in the second quarter 2010-11 to Rs 11.4 crore as against Rs 5.6 crore in the same period a year ago.
The company's net sales rose by 22.5 per cent from Rs 119.3 crore in the second quarter of the fiscal to Rs 146.2 crore for the same period this last year.
VIP's scrip closed at Rs 625.90 on the Bombay Stock Exchange, down 0.46 per cent from the previous close.
