India's luggage industry is set to report 15% jump in revenues in fiscal 2024, improving from the 40 percent growth achieved in the previous fiscal period, rating agency CRISIL said on Wednesday.
According to the agency's report, this growth is attributed to a surge in consumer preference for hard luggage made by the organised sector, and continuing growth in tourism and corporate travel.
Organized luggage makers are set to double capacity and ramp up retail presence by 35-40%, a feat that would see them draw up a total capital expenditure of ₹700 crore this fiscal, Rushabh Borkar, associate director at Crisil Ratings said.
India's luggage industry
Rising penetration of hard luggage made by the organised sector, and continuing momentum in tourism and corporate travel will help companies report strong sales.
India’s organized luggage market is led by companies such as VIP Industries, Samsonite, Safari, among others. These companies have benefited on the back of consumer shift to hard luggage. “Consumer preference for hard luggage has driven up operating efficiencies and improved capacity utilisation of the organised sector. That, in turn, should expand their operating margin 150-200 basis points (bps) on-year to 16% this fiscal," Crisil said.