Following the exit of the Piramal family, Multiples Alternate Asset Management has taken operational control of VIP Industries through a ₹1,750 crore investment at ₹388 per share. According to reports from The Financial Express, the deal was structured in two tranches between September and December 2025, with Multiples acquiring 31.89% equity through a combination of direct purchase and open offer. By March 2026, the Piramal family had stepped aside, with Renuka Ramnath as Chairperson and Atul Jain as the new MD and CEO, alongside six new senior executives.
As reported by The Financial Express, VIP Industries experienced a dramatic market share decline from 47% in CY20 to 29% by December 2025, with competitor Safari Industries gaining market share from roughly 3% to 32% over the same period. The company's financial performance deteriorated significantly, with EBITDA falling more than half in FY25 before turning negative in 9M FY26 at ₹159 crore loss. Revenue declined 16% year-on-year to ₹1,422 crore in 9M FY26, while the company reported a net loss of ₹69 crore in FY25.
According to the Q4 FY26 investor presentation, VIP Industries successfully completed a comprehensive inventory cleanup, reducing gross inventory units from 45 lakh to 28 lakh and net inventory from ₹698 crore to ₹472 crore between March 2025 and March 2026. The company spent ₹40-50 crore providing liquidation support to clear channel inventory, bringing all channels below 60 days from the previous 90 days of excess stock. Net debt reduced from ₹367 crore to ₹295 crore despite operating losses, with the improvement funded through inventory liquidation and sale of non-core assets.
As reported by The Financial Express, the Bangladesh manufacturing subsidiary achieved profitability with ₹8 crore profit in Q1 FY26 versus a ₹11 crore loss in Q1 FY25, while capacity utilization crossed 80%. The company's stock currently trades at ₹303, approximately 18% below the acquisition price of ₹388. Management has set a roadmap targeting margin recovery to 12% by FY29 and expects adjusted EBITDA to turn positive in FY27, though rating agencies expect margin recovery only by late FY27 at the earliest.
According to the analysis, the turnaround success depends on multiple factors including market share stabilization, online channel recovery, and resolution of the Carlton litigation by June 2026. The company faces challenges with online sales still bleeding despite offline recovery, while the Carlton brand dispute remains a significant overhang. Multiples' track record includes successful exits from companies like PVR Cinemas and Vastu Housing Finance, though the current investment requires patience as the turnaround timeline extends to 3-6 years.
