Travel And Weddings Biggest Drivers Of Business, Says VIP Industries
The luggage industry is likely to grow 15-20 percent as a stronger economy and rising incomes mean Indians are travelling a lot more.
With a significant pick-up in sectors such as aviation, and rail and road transport, the demand for travel bags has risen, Dilip Piramal, chairman of VIP Industries Ltd., India’s largest homemade luggage company, told BloombergQuint in an interview. The company is positioned better compared to peers to take advantage of a healthier economy, he added.
While travel is the main driver of sales for luggage makers in the country, weddings are also a big factor, Piramal said. “First quarter of a financial year is always the strongest because of the demand generated by the peak wedding season.”
With Chinese imports becoming more expensive as wages and manufacturing costs in the country rise, VIP has started local sourcing, including from Bangladesh, in order to keep costs under control. “We are getting back to becoming a manufacturing company,” Piramal said.
The company had moved towards imports post 2002 when a ban on import of consumer goods was lifted and customs duties declined over the next few years. Now that wages in China is going up, VIP has increased its production in India, Piramal explained.
Watch the full conversation here.