VIP Industries Announces Postal Ballot Results with Strong Shareholder Support

VIP Industries has officially announced the results of its postal ballot process, with shareholders demonstrating overwhelming support for all seven proposed resolutions. The company received the scrutinizer's report on December 19, 2025, confirming that all resolutions were passed with requisite majority as per the Companies Act, 2013.

Comprehensive Voting Results

The e-voting process, conducted through National Securities Depository Limited (NSDL), ran from November 19 to December 18, 2025. Ms. Ragini Chokshi of M/s. Ragini Chokshi Co., the appointed scrutinizer, confirmed strong shareholder participation with approximately 98.41 million shares participating in the voting process.

Resolution	Type	Approval Rate	Valid Votes Cast
Ms. Renuka Ramnath Appointment	Ordinary	99.91%	98,413,687
Mr. Sridhar Sankararaman Appointment	Ordinary	99.89%	98,413,677
Mrs. Shalini D. Piramal Appointment	Ordinary	99.91%	97,416,057
Mr. Rajendra Agarwal Appointment	Special	99.75%	98,413,664
Mr. Atul Jain as Managing Director	Ordinary	99.92%	98,413,677
Remuneration Package Approval	Special	97.16%	98,413,664
Borrowing Limit Increase	Special	99.31%	98,413,727

Board Leadership Transformation

Shareholders have approved a comprehensive board restructuring with the appointment of five new directors:

Key Appointments:

Ms. Renuka Ramnath as Non-Executive, Non-Independent Director-Chairperson with 99.91% approval
Mr. Sridhar Sankararaman as Non-Executive, Non-Independent Director with 99.89% approval
Mrs. Shalini D. Piramal as Non-Executive, Non-Independent Director with 99.91% approval
Mr. Rajendra Agarwal as Non-Executive, Independent Director with 99.75% approval
Mr. Atul Jain as Managing Director with 99.92% approval

Ms. Renuka Ramnath will lead the board as Chairperson, bringing over 35 years of experience in financial services and private equity to guide the company's strategic direction.

Management Compensation and Financial Flexibility

Shareholders approved Mr. Atul Jain's remuneration package as Managing Director with 97.16% support, the lowest approval rate among all resolutions but still demonstrating strong confidence:

Component	Details
Base Salary	₹3.00 crore per annum (first year)
Performance Bonus	₹60.00 lakhs
Stock Options	Up to 3,00,000 ESARs

The proposal to increase borrowing limits to ₹625.00 crore under Section 180(1)(c) of the Companies Act, 2013 received 99.31% approval, providing enhanced financial flexibility for expansion and working capital management.

Voting Process and Compliance

The postal ballot process was conducted entirely through electronic mode, with the company dispatching notices to all eligible shareholders on November 18, 2025. The cut-off date for determining voting eligibility was November 14, 2025. All resolutions are deemed to have been passed on December 18, 2025, the last date of e-voting.

The scrutinizer's report confirms that the voting process was conducted in a fair and transparent manner, with proper safeguards and witness verification during the result compilation process.

These approved corporate actions position VIP Industries for strategic transformation under new leadership, with enhanced financial capabilities to navigate market challenges and pursue growth opportunities in the luggage and travel accessories sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.49%	+1.28%	+11.54%	-7.88%	-18.72%	+2.81%

VIP Industries , a leading luggage manufacturer, has reported a significant increase in its consolidated net loss for the second quarter. The company's financial performance has deteriorated compared to the same period last year, reflecting challenges in the market.

Key Financial Highlights

Net Loss: The consolidated net loss for Q2 stood at ₹143.14 crore, a substantial increase from the ₹33.05 crore loss reported in the same quarter of the previous year.
Revenue: Quarterly revenue dropped to ₹406.34 crore from ₹544.26 crore year-over-year, indicating a decline of about 25.3%.
Expenses: Total expenses for the quarter were ₹563.32 crore, compared to ₹596.10 crore in the corresponding quarter last year.

Segment Performance

VIP Industries operates in a single business segment of "Manufacturing and marketing of luggage and bags" as per Indian Accounting Standard (Ind AS-108) requirements.

Balance Sheet Overview

As of September 30:

Item	Amount (in crore rupees)
Total Assets	1,722.09
Total Equity	463.85
Total Liabilities	1,258.24

Management Actions

The company has taken several steps to address the challenging business environment:

Inventory Management: The consolidated results include a provision towards inventories amounting to ₹67.65 crore for the half-year ended September 30.
Asset Optimization: VIP Industries has identified certain non-core assets with a book value of ₹3.89 crore and a fair value of ₹116.17 crore, which have been classified as 'Current Assets held for Sale'.
Employee Stock Appreciation Rights: The company granted 3,60,000 stock appreciation rights to eligible employees during the quarter, resulting in a net expense of ₹0.19 crore.

Challenges and Ongoing Issues

Trademark Litigation: The company is involved in an ongoing litigation regarding the use of a trademark. The Supreme Court of India has allowed the company six months to sell existing stock subject to certain conditions.
Commercial Dispute: A commercial suit has been filed against the company by a China-based company for recovery of ₹6.41 crore towards the supply of material.

Conclusion

VIP Industries faces significant headwinds as evidenced by the widened losses and revenue decline. The management is taking steps to optimize operations and manage costs, but the near-term outlook remains challenging. Investors and stakeholders will be closely watching the company's performance in the coming quarters for signs of a turnaround.