VIP Industries stops Carlton sales after Supreme Court order

VIP Industries Limited has discontinued the sale of products under the Carlton brand effective June 1, 2026, following a directive from the Supreme Court of India. The company successfully sold substantially all of its inventory under the brand name by the court-mandated deadline of May 31, 2026. This development concludes the temporary permission granted to the company to liquidate its existing stock amidst an ongoing trademark dispute with Carlton Shoes Ltd.

The Supreme Court, in its order dated August 1, 2025, had allowed vip industries to deal with its Carlton inventory subject to specific terms while disposing of a special leave petition against an order by the Division Bench of the Delhi High Court. The court directed the Delhi High Court to expedite the disposal of the civil suits between the two entities. Consequently, the company utilized the window until May 31, 2026, to clear the stock before halting sales completely.

Litigation and Compliance Details

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the cessation of sales is strictly in compliance with the apex court's directions. The legal battle involves the trademark rights over the Carlton brand, with the Supreme Court's interim arrangement now concluding as the scheduled date passed.

Financial Implications

Despite the discontinuation of the brand, the company stated that there is no material financial impact arising from this outcome. The sale of substantially all inventory prior to the cutoff date mitigated potential losses or write-downs. The following table summarizes the key details of the disclosure:

S. No.	Description	Details
1.	Status update	Company sold substantially all Carlton inventory by May 31, 2026; sales stopped from June 1, 2026.
2.	Financial impact	There is no material financial impact on the company.

The company filed the necessary disclosures as required under Schedule III of SEBI LODR Regulations, 2015, and additional details mandated by a specific SEBI circular dated January 30, 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.50%	+11.62%	+11.66%	-8.34%	-8.17%	-14.62%

V.I.P. Industries Limited has appointed Ms. Vaishali Shrikant Bhat and Mr. Sanjay Mahesh Rastogi as Additional Non-Executive & Independent Directors for a period of five consecutive years effective May 27, 2026. The appointments, approved by the Board via a Circular Resolution dated May 26, 2026, are subject to approval by the members of the company. These changes follow the resignation of two existing independent directors, effective from the close of business hours on May 26, 2026.

Mr. Tushar Jani resigned as Independent Director due to pre-occupation and other personal commitments. Consequently, he ceased to be the Chairman of the Audit Committee and a Member of the Stakeholders Relationship Committee, Nomination & Remuneration Committee, and Risk Management and Business Responsibility & Sustainability Committee. Ms. Payal Kothari also resigned as Independent Director due to other professional commitments, stepping down from her roles as Chairperson of the Stakeholders Relationship Committee and Corporate Social Responsibility Committee, and Member of the Allotment Committee.

New Appointments

The Board of Directors approved the appointments based on the recommendation of the Nomination and Remuneration Committee. Both new appointees are not liable to retire by rotation and satisfy the criteria of independence prescribed under the Companies Act, 2013, and SEBI Listing Regulations. They are not related to any Director of the company and are not debarred from holding the office of director by any regulatory authority.

Director Name	DIN	Date of Appointment	Term	Reason for Appointment
Ms. Vaishali Shrikant Bhat	11385751	May 27, 2026	5 Years	Additional Non-Executive Independent Director
Mr. Sanjay Mahesh Rastogi	08376572	May 27, 2026	5 Years	Additional Non-Executive Independent Director

Director Profiles

Ms. Vaishali Shrikant Bhat is a seasoned CFO/CXO with over three decades of experience across leading FMCG multinational companies including Procter & Gamble, Johnson & Johnson, and Reckitt. She served as the Global CFO of Reckitt's Hygiene business and currently runs her own enterprise offering consulting and executive coaching services.

Mr. Sanjay Mahesh Rastogi is a business leader with over three decades of experience in human capital strategy, new business incubation, and ESG. He is currently associated with Trent Limited as Head – New Businesses, Strategy, ESG, CSR & Leadership. Previously, he headed the Human Resources function at Trent Limited for over 15 years and was associated with Wockhardt Limited.