VIP Industries: The #1 Luggage manufacturer of Asia. A thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread"> (1/10)

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It is the 2nd largest Luggage manufacturer of the worldhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🌍" title="Europa-Afrika auf dem Globus" aria-label="Emoji: Europa-Afrika auf dem Globus">(Samsonsite being the 1st)
This company manufactures soft luggagehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🎒" title="Schulranzen" aria-label="Emoji: Schulranzen">(68% of revenue) & hard luggage https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧳" title="Luggage" aria-label="Emoji: Luggage"> (32%of revenue).
(2/10)

It has a wide brand list under its name : VIP, Skybags, Alfa & Aristocrat for mid range & affordable segment, Carlton for premium segment (UK brand, acquired) & Caprese (ladies hand bag) https://abs.twimg.com/emoji/v2/... draggable="false" alt="👜" title="Handtasche" aria-label="Emoji: Handtasche"> (3/10)

Industry: Safe to say that this industry is directly related to lavish spending https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> & tourism https://abs.twimg.com/emoji/v2/... draggable="false" alt="✈️" title="Flugzeug" aria-label="Emoji: Flugzeug"> Organised sector accounts for 40% in this industry while 60% still remains unorganized https://abs.twimg.com/emoji/v2/... draggable="false" alt="👷" title="Bauarbeiter" aria-label="Emoji: Bauarbeiter"> Among the branded players, VIP has 60% market sharehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👑" title="Krone" aria-label="Emoji: Krone"> (4/10)

India’s https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3">rd largest player, Safari has been increasing its sales & market share massively over the years(at the cost of margin) Along with this company, VIP also faces threat from in-house production of e-comm brandshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⚡" title="Hochspannungszeichen" aria-label="Emoji: Hochspannungszeichen"> (5/10)

Soft luggagehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🎒" title="Schulranzen" aria-label="Emoji: Schulranzen">dominates the market with 75% share. Among which backpacks is the fastest growing & most competitive segment. This sector has huge competition from giants like Safari, American Tourister, Nike, Adidas & Puma (6/10)

Raw Materials constitute 47% of total expenses. There is heavy dependency on Chinahttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇨🇳" title="Flagge von China" aria-label="Emoji: Flagge von China"> for the same. In an attempt to negate this, it has installed manufacturing units in Bangladeshhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇧🇩" title="Flagge von Bangladesch" aria-label="Emoji: Flagge von Bangladesch"> for cheap labour (7/10)

This industry hardly requires any debt. The company has 386 crores as borrowings which is for CAPEX purposes as per managementhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👨‍💼" title="Büroangestellter" aria-label="Emoji: Büroangestellter">(8/10)

7% of total expenses are attributable to Advertising https://abs.twimg.com/emoji/v2/... draggable="false" alt="📺" title="Fernsehen" aria-label="Emoji: Fernsehen"> which is the most among peers! (9/10)

Financials: 5 year sales & profit growth are 10% & 19% resp. Not only market share but margins too have increased. Uniquehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">
ROE & ROCE is at 23% and 33% resp. CFO/PAT>1 and ICR is 7 times
(10/10)
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