Luggage maker VIP Industries on Tuesday announced a slew of management-level changes following a board meet, two months after the promoter family led by Dilip Piramal sold a 32% stake to private equity investors including Multiples PE for Rs 1,763 crore.
The company appointed Atul Jain as its new MD for five years with immediate effect. He replaces incumbent Neetu Kashiramka, who resigned on Tuesday, but will continue with the company till October 31 to ensure smooth transition.
Board and leadership reshuffle
The company also named Dilip Piramal as chairman emeritus on an honorary lifetime basis, drawing no salary. He will not be a member of the board of directors. The company also appointed four additional directors (non-executive, non-independent) with immediate effect: Renuka Ramnath, Sridhar Sankararaman, Shalini D Piramal, and Rajendra Agarwal.
Additionally, Radhika Piramal, vice-chairperson and executive director, also announced her resignation, while Ashish Saha stepped down from his role as executive director. Saha, however, will continue with the company as senior vice-president, manufacturing and new projects, remaining part of the leadership team, the Mumbai-based firm said.
Along with Jain, CFO Manish Desai and company secretary Ashutosh Sheth have been authorised to decide on disclosures to the stock exchanges, in line with Sebi rules, the firm said.
Industry experience and strategic vision
Jain, an alumnus of IIT-Delhi and IIM-Calcutta, brings over 20 years of experience across industries like consumer durables, FMCG, telecom, and education. He previously worked as senior director at Samsung Electronics in South Korea, where he played a key role in growing the consumer durables business, the firm said. He has also held leadership positions at Coca-Cola, Bharti Airtel, Godfrey Phillips India, and served as CEO of Aptech.
The leadership change comes at a time when VIP Industries faces tough competition in the luggage and lifestyle market from rivals such as Safari Industries and Samsonite. Apart from legacy brands, VIP has also faced stiff competition from startups such as Mokobara, Nasher Miles and UpperCase, as consumer preferences undergo a change, thanks to growing digital and e-commerce penetration within the luggage market.
Piramal had said in July that the acquisition marked an important step towards reviving the company’s strong legacy. “It will help the company in regaining its foothold in the Indian luggage market, where it has struggled in recent years,” he said.
The acquisition had triggered the mandatory open offer for an additional 26% stake in the firm, with buyers forking out an additional Rs 1,437 crore for this transaction.