VIP to enter soft luggage mart

VIP Industries is planning to enter the domestic soft luggage segment by making economy products in the range of Rs 300 to Rs 1,500.

Accordingly, Alfa, the economy segment luggage brand of VIP Industries would also make soft luggage. As of now, only hard luggage was manufactured in the Alfa category.

"Eighty per cent of the Rs 700 crore soft luggage market in India is cornered by unorganised players. Moreover, not many organised players in India manufacture soft luggage for the economy class. The potential is therefore huge," said Sunil Kataria, vice-president - marketing, Blow Plast, the marketing arm of VIP Industries.

"Today brand Alfa generates a turnover of Rs 50 crore annually from its hard luggage. We would like to take the turnover to Rs 100 crore by 2007-08, expecting 50 per cent of sales then to come from soft luggage," said Kataria.

Blow Plast has a presence already in the soft luggage segment through its VIP, and Carlton brands, which cater to the premium segment of the market. Soft luggage are predominantly sourced from China. Blow Plast has got a sourcing office in Hong Kong.

As part of the foray, the company has launched soft luggages such as "Jet Strolley and Totes", "Club Strolley and Totes" and "Express Totes" between Rs 379 and Rs 999.

"VIP has a market share (organised) of about 60 per cent each in soft luggage and hard luggage categories. Hard luggage market is worth Rs 840 crore with organised players controlling 55 per cent of the segment," said Kataria.