India’s Luggage Industry Growth Story: From Steel Trunks to Global Supply

In the 1970s and 1980s, luggage was synonymous with heavy steel trunks. Travel was infrequent, often limited to annual long journeys, and luggage functioned as a permanent possession rather than a consumable item. Over time, this dynamic shifted: travel became more frequent, and luggage transformed into a replaceable, functional, and aspirational product.

This evolution highlights why legacy players like VIP Industries cannot simply be dismissed as outdated brands. Recent structural, financial, and strategic developments indicate a more complex, high-stakes narrative.

India: From Consumer to Global Supplier

The modern suitcase rolling through an airport today represents far more than a single brand. India has transitioned from being only a buyer of luggage to a global supplier. Observing modern airports or railway stations reveals how deeply technology has reshaped travel—from infrastructure and ticketing systems to queues and baggage handling. Even simple travel products, such as luggage, have undergone significant design, material, and functional upgrades.

India’s luggage sector reflects this evolution. What once existed purely out of necessity has expanded into a multi-faceted industry shaped by aesthetics, material science, branding, and capital markets. Brokerage houses now view it as a long-term structural growth story rather than a low-engagement consumer discretionary segment.

Market Growth and Structure

Before the pandemic, the Indian luggage market was valued at around ₹6,000 crore. By 2026, it has risen to nearly ₹18,000 crore, with projections pointing toward ₹27,000 crore by 2028. This growth reflects not just higher volumes but increasing value. Branded and organized players now command more than 54% of the market, signaling a structural shift rather than a temporary trend.

As the market has expanded, competition has intensified. Established incumbents coexist with digitally native entrants that are redefining pricing, branding, and distribution strategies.

Historical Context: From Steel Trunks to Mass-Premium Luggage

In earlier decades, luggage primarily meant steel trunks used for weddings or extended train journeys. VIP Industries’ introduction of molded plastic suitcases marked a major innovation. These suitcases were treated as long-term assets, and replacement cycles were almost nonexistent.

Post-2000, increased mobility, low-cost airlines, and urbanization drove more frequent travel. Luggage purchases began to prioritize design, convenience, and functionality, alongside durability. This behavioral shift laid the foundation for the sector’s long-term growth.

Key Players and Strategies

Safari Industries focused on the mass-premium segment, offering stylish and modern bags accessible to middle-income consumers. This approach enabled Safari to steadily capture market share from traditional rivals. Financially, Safari is robust:

• Market capitalization: ~₹1,400 crore
• Profit CAGR (past five years): 35%
• Q2 FY26 revenue: ₹534 crore
• Operating margin: ~14%
• Key strengths: nearly debt-free balance sheet, strong e-commerce presence

VIP Industries represents a more complex case. Decades of market leadership were challenged by a shift toward hard luggage. Q2 FY26 figures, the most recent available, highlight this:

• Consolidated net loss: ₹143 crore
• Revenue decline (YoY): ~25%

Despite these challenges, VIP’s story is far from over. A consortium of private equity investors recently acquired a 32% stake, signaling confidence in a turnaround. Renewed management focus, a premium-first strategy, and brand revitalization of labels such as Carlton and Skybags position VIP as a high-risk, high-reward opportunity. Further precision could be added with details such as debt-to-equity ratios and private equity investor identity to quantify the risk-reward proposition.

Global Benchmark: Samsonite
Samsonite continues to dominate the premium luggage segment, maintaining gross margins near 60%. India serves as both a key consumer market and its largest global manufacturing base. Despite rising local competition, aspirational branding and brand recall keep Samsonite firmly positioned in the luxury segment.

Disruptors and D2C Players
Mokobara, founded by former Urban Ladder executives, has redefined luggage as a lifestyle accessory. FY23 revenue reached ₹17 crore, representing 120% YoY growth, with a ₹4 crore loss. Series B funding has valued the company at ₹700 crore. Nasher Miles emphasizes vibrant designs, while Uppercase leads sustainability by producing eco-friendly luggage from recycled plastics. These entrants highlight that modern competition is not just price-driven—it is aspirational, brand-led, and innovation-driven.

The Luggage Ecosystem

Modern luggage depends on a complex ecosystem of suppliers, component manufacturers, and material producers. The move toward hard-sided luggage has created opportunities for plastic and chemical companies. 

Polycarbonate and polypropylene now form the backbone of the industry. Input costs, especially plastic-based, make companies like VIP and Safari sensitive to crude oil price fluctuations.

Sector Drivers

Three structural drivers underpin brokerage optimism:

1. Wedding-Driven Demand – Premium luggage sets remain essential in Indian trousseaus.
2. Premiumization – Rising consumer standards improve margins and structural profitability.
3. China Plus One – India is emerging as a global manufacturing alternative, producing wheels, shells, and zippers locally, reducing reliance on imports.

Comparative Overview

A snapshot of sector players illustrates the landscape

The Final Conclusion

The Indian luggage sector has evolved from a low-interest commodity into a high-growth fashion, lifestyle, and industrial ecosystem. Whether through legacy scale (VIP), operational efficiency (Safari), or brand-driven aspirational appeal (Mokobara), luggage reflects broader consumer and economic trends in India.

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Disclaimer:

This article is for informational purposes only and does not constitute investment advice. Data on brands like VIP, Safari, Mokobara, and others may change. Readers should research or consult a financial advisor before making decisions.

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