Khaitan & Co has advised private equity fund Multiples Alternate Asset Management Private Equity Fund’s acquisition of approximately 32 percent stake and control in luggage-maker VIP Industries by the Multiples Consortium for INR 1,763 crores. AZB & Partners represented the selling promoters of VIP led by the Dilip Piramal family.
The Multiples-led consortium includes Multiples PE Fund IV, Multiples Gift Fund IV, Samvibhag Securities Pvt, and investors Mithun Padam Sacheti and Siddhartha Sacheti.
The deal structure involved the acquisition of a 32 percent stake purchase. Following this acquisition, the consortium will make a mandatory open offer to public shareholders to buy an additional 26 percent stake at the same price, potentially increasing their total holding to about 58 percent, which would grant them majority control over VIP Industries.
This acquisition marks a pivotal moment in VIP Industries’ history, transferring majority control from the founding family to a private equity consortium with the goal of reviving growth and reinforcing its market leadership in the branded luggage segment in India
Dilip Piramal will step back from control but retain a minority stake of around 20 percent and the title of Chairman Emeritus. He retains the right to nominate one family member or recommend an independent director to the board.
Founded in 1968, VIP Industries is Asia’s largest and the world’s second-largest luggage manufacturer, with brands including VIP, Carlton, Aristocrat, Skybags, and Caprese.
Despite a legacy of market leadership with over 50 percent market share, VIP has faced challenges in recent years, including stiff competition from brands like Samsonite and Safari, a decline in market share, and losses reported in FY25 due to intensifying competition and pandemic-related disruptions.
Dilip Piramal cited a lack of interest from the younger generation in running the family business, which also factored into the decision to sell a significant stake.
The Khaitan team was led by partner Shishir Vayttaden and included partners Abhishek Dadoo, and K Aishwarya. The team included counsel Shashank Patil, senior associate Vritika Lakhwani and associate Gitika Lahiri. The team received assistance from partner Anisha Chand and counsel Soham Banerjee on merger control matters, counsel Amruta Joshi on real estate aspects, counsel Srishti Ramkrishnan on employment law issues and partner Nirupam Lodha on intellectual property matters.
The AZB team was led by senior partner Anand Shah, and partners Kinshuk Jhunjhunwala and Shriram Shah. The team comprised senior associate Aayush Raman, associates Jhanvi Sangani and Kareena Sobti, and articled clerk Karan Nair.
