Dilip Piramal, the veteran chairman of VIP Industries, has made headlines as he dissolves a significant portion of his stake in the iconic luggage brand. On July 14, 2025, Piramal and his family, who held a 51.73% stake, agreed to sell 32% to a consortium led by Multiples Private Equity, alongside Samvibhag Securities and the Sacheti brothers, in a deal worth ₹1,763 crore. This move reduces the Piramal family’s holding to 19.73%, marking a pivotal shift for Asia’s largest luggage manufacturer.
Why Dilip Piramal Dissolves Stake
The primary reason behind Dilip Piramal dissolving his stake is the lack of interest from his children in continuing the family legacy. Since taking control of VIP Industries in 1980, Piramal built it into a market leader with a 50% share in India’s luggage sector. However, with no heirs eager to take over, the 75-year-old chairman opted to transition the company to professional management and private equity ownership. Piramal expressed regret for not selling earlier when share prices were higher, around ₹700, acknowledging the financial impact of recent losses.
The Deal and Its Implications
The transaction triggers a ₹1,437 crore open offer for an additional 26% stake, as required by SEBI regulations. Post-sale, Dilip Piramal dissolves his stake but will remain Chairman Emeritus, with his wife representing the family on the board. The deal, valued at ₹3,200 crore overall, positions Multiples Private Equity to steer VIP Industries toward recovery after four quarters of losses. Piramal remains optimistic, citing the company’s strong market position and potential for growth under new leadership.
A New Chapter for VIP Industries
As Dilip Piramal dissolves his stake, VIP Industries faces a transformative phase. The infusion of capital and expertise from Multiples Private Equity aims to address declining market share and revitalize the brand. This move reflects a broader trend of family-run businesses pivoting to professional management when succession plans falter.
Sources: Times of India, NDTV Profit, CNBC-TV18, The Financial Express