The Indian luggage industry is witnessing a dramatic shift in market dynamics as traditional players face new challenges. According to reports from Mint, Safari Industries has overtaken VIP Industries in revenue for the first nine months of 2025-26, with Safari generating ₹1,574 crore compared to VIP's ₹1,422 crore. This represents a significant turnaround from pre-pandemic times when both companies commanded roughly equal market share. The competitive landscape has intensified with Safari's shareholders seeing their company's market capitalization nearly triple during the same period, while VIP shares shed nearly 10% despite the broader market's expansion.
The post-pandemic luggage market has undergone a fundamental transformation, moving away from traditional soft fabric suitcases toward hard premium luggage which now accounts for 55% of the organized market by 2024-25, up from just one-third in 2021-22. As reported by Mint, India's luggage industry is compounding at 13% annually and is set to reach ₹38,000 crore by 2028 versus ₹23,000 crore in 2024. The shift toward organized retail has been equally dramatic, with unorganized retail sales more than doubling from ₹12,000 crore to ₹25,000 crore over four years. E-commerce has surged from just 7-8% of total sales pre-pandemic to over 40% currently, fundamentally altering distribution channels.
VIP Industries faces significant financial headwinds despite its market-leading position. According to Mint reports, the company reported a net loss of over ₹200 crore in the first nine months of 2025-26, marking a sharp decline from its pre-pandemic performance. The company's net debt stood at ₹367 crore at the end of 2024-25, while net inventory of unsold goods reached ₹698 crore. In July 2025, Dilip Piramal and family sold their 32% stake for over ₹1,700 crore to a consortium including Multiples Alternatives and Caratlane founders. The company's premium and mass-premium brands' share dropped from 70% pre-pandemic to 55% by Q1 2025-26, while mass-priced brands Aristocrat and Alfa have been growing.
Safari Industries has positioned itself strategically to capitalize on the premiumization trend while maintaining its mass-market presence. As reported by Mint, Safari made nearly three-fourths of its revenue from hard luggage in 2024-25, representing a significant shift from 19% in 2018-19. However, 80% of Safari's sales still come from mass-priced luggage, highlighting the company's dual strategy. Urban Jungle, Safari's premium D2C brand launched by Tanisha Jatia, generated ₹100 crore ARR (annualized run rate) and is targeting to double this next year. The company has also diversified its distribution channels, building separate networks for Urban Jungle while maintaining its core mass-market customer base.
The competitive landscape is intensifying with emerging D2C brands challenging traditional players. According to Mint reports, top online-first luggage startups have raised nearly $60 million in venture capital, with Bengaluru's Mokobara valued at ₹700 crore. The rivalry has reached new heights with Safari securing a 20-year agreement with Carlton Retail Pvt. Ltd in February 2026, while VIP continues to face legal challenges over the Carlton brand name. Indian outbound travel crossed pre-pandemic levels with 27.8 million departures in 2023, growing another 11% to over 30 million in 2024, while domestic tourism recorded 2.9 billion visits in 2024, up 17% year-on-year. Industry experts suggest that while value-conscious buyers remain dominant, they are becoming more aspirational, creating opportunities for both legacy players and new entrants.
