Nisaba Godrej, executive chairperson of Godrej Consumer, has resigned as an independent director from the board of VIP Industries, citing differences over leadership accountability and succession planning. The resignation was effective June 3, 2024, and was disclosed in a stock exchange filing on Tuesday.
Citing differences in leadership
In her resignation letter, Godrej stated, "Due to my differing view on leadership accountability and succession planning, I will be resigning from the Board effective June 3rd, 2024."
Board leadership and tenure
The board of VIP Industries is currently led by Chairman Dilip Piramal. Godrej was reappointed to the VIP Industries board in April 2021, with her term set to end in March 2026. She attended all five meetings in FY23 and waived her sitting fees.
Acknowledgement and future wishes
In her letter, Godrej praised VIP Industries, saying, "VIP Industries is a wonderful company, a creator of the luggage category in India and the market leader, and I wish the company much success in the years to come."
Background and other roles
An alumna of Wharton School and Harvard Business School, Nisaba Godrej also serves as a director of Godrej Agrovet and is an independent director at Bharti Airtel and Mahindra and Mahindra.
Market position and performance
VIP Industries, with a market capitalisation of Rs 6,900 crore, competes with Samsonite and Safari Industries in the premium and mass segments. The company owns brands such as Aristocrat, VIP, Carlton, Skybags, and Caprese, and held a 56% market share in the branded luggage segment in FY24. Despite this, it faces stiff competition and a gradual reduction in market share.
Financial performance
For the fiscal year ending March 2024, VIP Industries reported a revenue of Rs 2,245 crore, marking a 7.82% year-on-year increase.
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