Dear Shareholders,
It is my privilege to present the Annual Report for VIP Industries for the financial
year ended March 31, 2024. Our Company has had a difficult year, with our financial
performance falling short of our expectations. Nevertheless, I firmly believe that such
challenges test an organisation's character, and our longstanding presence is a testament
to our resilience. By leveraging the lessons learned from these challenges to accelerate
our ambitious transformation, we are confident in reenergising our growth.
We are operating in a robust business environment, reinforcing our belief in our growth
potential. The Indian economy is poised for consistent expansion over the next several
years, buoyed by public capital expenditure and strong domestic demand. Closely linked to
GDP growth, India's travel and tourism market is projected to grow at a CAGR of 9.62% from
2024 to 2028. Domestic air passenger traffic continues its rapid growth, making India one
of the world's fastest-growing civil aviation markets. Additionally, international travel
demand is rising, with India's international passenger traffic reaching around 70 million
in FY 2023-24, surpassing the pre-pandemic level of 67 million passengers in FY20. This
expansion in travel and tourism is fuelling the growth of India's luggage industry.
Factors such as a burgeoning middle- class population, rising disposable incomes,
increasing urbanisation, evolving lifestyles, and heightened fashion consciousness are
also fuelling the growth of India's luggage market. Additionally, the increasing demand
for stylish yet functional luggage, coupled with the explosive growth of e-commerce, has
positioned the market at a pivotal point. With an expected CAGR of around 14.4% from 2024
to 2030, the luggage market is on a robust growth path. Furthermore, the shift towards
branded products is transforming the industry landscape, promising a bright future for the
organised luggage sector.
During the year, we saw significant changes to the executive team.
The Board unanimously decided to promote Ms. Neetu Kashiramka to the position of
Managing Director following the resignation of Mr. Anindya Dutta in August 2023. Since
joining VIP Industries in 2020 as Chief Financial Officer, Ms. Kashiramka has made
invaluable contributions to our performance. She knows our business inside out,
understands our strengths, and has a clear vision for where improvements are needed,
making her exceptionally well-qualified to re-energise VIP Industries. With Ms. Kashiramka
in her new role, the Board appointed Mr. Manish Desai as the Chief Financial Officer in
February 2024.
Mr. Desai brings a wealth of knowledge and experience spanning over 25 years in various
business and finance functions. We also strengthened our senior management team with the
appointment of new heads. Our evolved leadership positions us well for the next phase of
our journey.
Businesses must reinvent themselves to succeed in a dynamic environment; accordingly,
our highest priority is accomplishing our ongoing transformation. The Board plays a
crucial oversight role, ensuring that long-term thinking is embedded into our strategy. To
support this, we are leveraging the diverse perspectives of my fellow Directors to ensure
a comprehensive understanding of the challenges and opportunities ahead. This journey is
of paramount importance and will bring us closer to realising our vision of becoming a
travel solutions company, thereby solidifying our foundation for long- term success.
I would like to close by recognising our management and employees for their valued
contributions throughout FY 2023-24. I also extend my gratitude to our customers for their
patronage, and to our partners, shareholders, and all other stakeholders for their
engagement and support.
By progressing on our holistic transformation, while staying true to our core values,
we are committed to capturing unfolding opportunities and delivering long-term value.
Warm regards,
Dilip G. Piramal