VIP Industries has issued a comprehensive clarification regarding the ongoing Carlton trademark litigation and recent market developments that could potentially impact stakeholder perception. The luggage manufacturer addressed concerns following competitor Safari Industries' announcement of acquiring licensing rights for the Carlton trademark.

Current Litigation Status

The trademark dispute remains under judicial consideration with two cases pending before the Delhi High Court. The litigation involves VIP Industries' right to use the Carlton trademark for travel luggage in India, with proceedings in CS (COMM) No. 730 of 2019 and CS (COMM) No. 52 of 2020 still awaiting resolution.

Notably, Carlton Shoes Limited has not yet filed their affidavits of evidence for any witness despite the Supreme Court's direction for expeditious disposal of the suits in its order dated August 01, 2025.

Supreme Court Interim Relief

The Supreme Court of India has granted VIP Industries specific interim relief regarding its existing Carlton branded inventory. Through orders dated August 01, 2025, and January 23, 2026, the company has been granted liberty to dispose of its existing Carlton branded inventory before June 01, 2026, pending the outcome of the litigation.

Competitor Licensing Development

The clarification was prompted by Safari Industries' announcement on February 18, 2026, regarding its acquisition of a long-term license to use the Carlton trademark in India from Carlton Shoes Limited. VIP Industries expressed concern that this development could create confusion among customers, distributors, and stakeholders, particularly given the ongoing litigation.

Company's Response and Commitments

VIP Industries outlined several key positions in response to the current situation:

• Legal Pursuit: The company will continue pursuing the litigation until final determination and assert its right to use the Carlton trademark for luggage in India
• Inventory Management: Following Supreme Court directions, the company will continue selling existing Carlton branded inventory within the specified timeframe
• Market Clarity: The company is issuing appropriate instructions to distributors to prevent confusion with competitor products

Global Business Operations

The company emphasized that the Indian litigation has no implications on its global Carlton brand business. VIP Industries has registered the Carlton brand in several key overseas jurisdictions, and its right to use the Carlton brand internationally remains unaffected. The company noted that Carlton branded luggage is sold globally, with overseas sales contributing a meaningful proportion to total brand revenue.

The clarification was issued under SEBI Listing Regulations to prevent confusion regarding the company's previous disclosures related to the trademark matters and to ensure stakeholders have accurate information about the ongoing legal proceedings.

VIP Industries Limited has informed stock exchanges about inspection and search proceedings initiated by Maharashtra tax authorities at its facilities on February 24, 2026. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Inspection Details

The Assistant Commissioner of State Tax, Maharashtra initiated the inspection and search proceedings at VIP Industries' registered office and manufacturing unit located in Nashik, Maharashtra. The proceedings are being conducted under Section 67 of the Maharashtra Goods & Service Tax Act, 2017.

Company Response and Cooperation

VIP Industries confirmed that the inspection proceedings are currently ongoing and the company is extending full cooperation and assistance to the authorities. The company has not received any communication regarding specific violations or contraventions at this stage.

Impact Assessment

According to the company's disclosure, there is no material impact on the financial operations, business activities, or other operations of VIP Industries due to the inspection proceedings. The company has committed to making necessary disclosures in accordance with regulatory provisions if any material updates emerge that require intimation under the SEBI Listing Regulations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations. VIP Industries provided detailed information as required under the SEBI Master circular dated January 30, 2026, ensuring full transparency with stakeholders regarding the ongoing tax inspection proceedings.