Nisaba Godrej has resigned as an independent director on the board of VIP Industries, citing differing views on leadership accountability and succession planning.
“As discussed, due to my differing view on leadership accountability and succession planning, I will be resigning from the board effective June 3rd, 2024” she said in her letter to VIP Industries chairman Dilip Piramal, a copy of which was filed by the company on BSE. “VIP Industries is a wonderful company, a creator of the luggage category in India and the market leader and I wish the company much success in the years to come,” she added.
Nisaba, who is the executive chairperson of Godrej Consumer Products, also serves as an independent director on the boards of Airtel and Mahindra & Mahindra.
A year ago, the luggage maker elevated chief financial officer Neetu Kashiramka as the managing director designate after Anindya Dutta resigned citing personal reasons. There were also reports that promoters are planning to sell their stake in the company.
The promoter group, led by Dilip Piramal, controls nearly half of the Indian luggage market through brands such as VIP, Carlton, and Skybags. However, it has been losing out to Samsonite in the premium end and Safari Industries at the mass-end of the segment.
VIP Industries posted a 10% rise in net sales at ₹2,215 crore last fiscal. However, net profit fell to ₹28 crore in FY24 from ₹161 crore in the previous fiscal.
Luggage makers Samsonite, Safari and VIP Industries are seeing sharp slowdown in sales growth.
