VIP Industries eyes 45% market share, bets on manufacturing shift from China

VIP Industries had fairly a tumultuous interval throughout the COVID-induced lockdown. Nonetheless, issues are again to regular due to journey and marriage season. The corporate noticed superb traction within the second quarter of this yr, which is generally the weakest quarter. “This yr, the second quarter has additionally develop into fairly good. So, we’re very optimistic concerning the future,” Piramal mentioned.

“We at the moment are at about 43 per cent, now we have gained market share within the present yr and, our goal is to now attain at the least 45 per cent market share throughout this fiscal yr. I hope we are able to even get the again to the excessive 40s the subsequent yr,” Piramal mentioned in an unique dialog with Udayan Mukherjee, world enterprise editor, Enterprise Right this moment TV. 

, Piramal On being requested about decreasing mentioned, “After the pandemic, China prices have develop into very excessive, our volumes have gone up a lot that we at the moment are rationalising all that. We are going to purchase from China solely what’s barely the most affordable product there. Will purchase rather a lot from India and Bangladesh. Progressively within the subsequent two years, we needs to be within the optimum enter place for enter uncooked materials that can save prices significantly.” 

Speaking about future plans, Piramal mentioned the corporate plans to boost its presence in multinational markets step-by-step. Worldwide gross sales account for lower than 10 per cent of whole gross sales. “We can not clearly purchase from anyone else and promote overseas. We have now to make it ourselves and procure extra in India. We’re, I consider, in all probability among the many lowest-cost producers on the earth,” he added.

Commenting on the GST regime, Piramal mentioned it had confirmed to be an important enabler for organised gamers. It actually decreased the extent of taxation which was excessive on all manufactured merchandise and all branded merchandise as a result of there was a big excise responsibility and the gross sales tax was additionally very excessive. GST subsumed the whole lot at a price of 18 per cent and the corporate additionally received some enter credit score set off.

On VIP’s subsequent diversification transfer, Piramal mentioned, all the women’ purses are within the very popular couture, very excessive section, promoting for 1000’s of {dollars}. There isn’t any massive model that’s promoting, retailing at underneath 100 {dollars} and that could be a superb house. “I really feel, it is similar to baggage in manufacturing and even in distribution, and I hope in a while within the subsequent 5 years, we’re capable of tackle that market in a major method.”

The corporate has manufacturing amenities throughout India and Bangladesh, producing manufacturers resembling Aristocrat, VIP, Skybags, Carlton, and Caprese, which goal completely different value factors.