VIP Industries , a prominent player in the travel luggage sector, has received a favorable order from the Supreme Court of India in its ongoing trademark dispute with Carlton Shoes Ltd. The order allows VIP Industries to deal with its inventory of products under the Carlton trademark, subject to specific terms set by the court.

Supreme Court's Decision

The Supreme Court's order comes as a relief for VIP Industries following the Delhi High Court's earlier dismissal of the company's appeal against an interim order. The interim order had restricted VIP from conducting its travel luggage business under the Carlton trademark.

Key points of the Supreme Court's decision include:

• Disposal of VIP Industries' Special Leave Petition
• Permission for VIP to deal with existing Carlton-branded inventory, subject to specific conditions
• Direction for VIP to submit an undertaking to the Supreme Court
• Instruction to the Delhi High Court to expedite the resolution of civil suits between VIP Industries and Carlton Shoes Ltd.

Implications for VIP Industries

The company has stated that there are currently no expected financial implications beyond what has been mentioned in the court order. This development allows VIP Industries some breathing room to manage its existing Carlton-branded inventory while the broader trademark dispute continues in the lower courts.

Looking Ahead

The Supreme Court's directive to the Delhi High Court to expedite the resolution of the civil suits between VIP Industries and Carlton Shoes Ltd. suggests that a final resolution to this trademark dispute may be on the horizon. This could provide clarity for both companies and potentially impact the future of the Carlton brand in the Indian travel luggage market.

Upcoming Earnings Call

In a separate announcement, VIP Industries has scheduled its Q1 earnings call for August 7 at 3:30 PM. The call will discuss the company's performance for the quarter ended June 30 and may provide further insights into how the ongoing trademark dispute and recent court order have affected the company's operations and financial outlook.

As this legal battle unfolds, stakeholders will be keenly watching for any further developments that could impact VIP Industries' position in the competitive travel luggage industry.

VIP Industries , a leading luggage manufacturer in India, is set for a significant ownership change as a consortium led by Multiples Equity seeks regulatory approval to acquire a substantial stake in the company.

Proposed Acquisition Details

The Multiples Equity-led consortium has approached the Competition Commission of India (CCI) for approval to acquire a 32% stake in VIP Industries. This move comes as the current promoters, Dilip Piramal and Family, have announced their intention to sell up to 32% of their stake to the consortium.

The consortium comprises:

• Multiples Private Equity Fund IV
• Multiples Private Equity Gift Fund IV
• Samvibhag Securities
• Mithun Padam Sacheti (Caratlane founder)
• Siddhartha Sacheti
• Profitex Shares and Securities

Open Offer and Financial Implications

Following the acquisition, the consortium will be required to make an open offer to acquire an additional 26% stake from the open market. The total consideration for the transaction is estimated at Rs 1,437.78 crore, assuming full acceptance of the open offer.

Management Changes

Upon completion of the transaction, control of VIP Industries will transfer to Multiples Private Equity. Dilip Piramal, the current promoter, is set to transition to the role of Chairman Emeritus.

Company Overview

VIP Industries, with a market capitalization of Rs 6,389.47 crore, is a dominant player in the Indian luggage market. The company's brand portfolio includes:

• Aristocrat
• VIP
• Carlton
• Skybags
• Caprese

In the financial year 2024, VIP Industries reportedly held over 50% market share in the branded luggage market in India.

Financial Performance

For the financial year ended March 31, 2025, VIP Industries reported revenue of Rs 2,169.66 crore, showcasing its strong position in the market.

This proposed acquisition marks a significant development in the Indian luggage industry, potentially reshaping the competitive landscape and bringing new strategic direction to one of the country's leading luggage manufacturers.