VIP Industries On The Block? Nisaba Godrej Steps Down Over Succession Planning

Nisaba Godrej has stepped down from her position as an independent director on the board of VIP Industries Ltd., 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," Godrej said in her letter to VIP Industries founder-chair Dilip Piramal, a copy of which was filed by the company on the exchanges.

Nisaba, who is the executive chairperson of Godrej Consumer Products, also serves as an independent director on the boards of Bharti Airtel Ltd. and Mahindra & Mahindra Ltd.

The issue revolves around Radhika Piramal, the London-based vice-chairperson of VIP and daughter of Dilip Piramal, showing reluctance to carry on with the business, according to people aware of the matter who spoke on the condition of anonymity. This has prompted the family, who holds a 51.76% ownership in the company, to consider selling their share. Moreover, Nisaba was dissatisfied with VIP's performance.

VIP Industries was the largest luggage maker in India until last year when it was surpassed by Samsonite, the world's largest luggage maker. In 2023, Samsonite's revenue in India reached $273.7 million, exceeding VIP Industries' $263 million according to Samsonite's global annual filings.

The luggage maker has also been losing share to Safari Industries at the mass-end of the segment. In the financial year-ended March, VIP's net profit fell to Rs 54 crore from Rs 152 crore a year ago.

The company has also seen a slew of top-level exits. Anindya Dutta resigned as the managing director in August 2023, having taken on the role in February 2021. Sudip Ghose also left his position as managing director in January 2021, after serving since April 2018.

In a bid to turn things around, VIP promoted chief financial officer Neetu Kashiramka to managing director last year.