For decades, the luggage market was a largely predictable landscape dominated by two key players. VIP catered to the everyday traveller with a mass-market approach, while Samsonite served the more discerning, suit-and-tie crowd.
This duopoly maintained a steady, albeit unremarkable, rhythm in an industry that was often viewed as mundane. However, in recent years, the sector has witnessed a quiet yet significant transformation – and at the heart of this change is Safari Industries.
A Changing Landscape
Historically, luggage was seen as a utilitarian necessity rather than an aspirational purchase. That perception began to shift when venture capitalists recognised the untapped potential for disruption in this stagnant market. The explosion of internet-first brands in sectors such as fashion, food, and personal care eventually reached the realm of luggage.
Startups like Mokobara, Nasher Miles, Assembly, and Uppercase have injected new life into the industry with smart social-media marketing, youthful aesthetics, and a focus on lifestyle branding.
This fresh wave of entrants has redefined consumer expectations. Luggage is no longer merely about durability and function—it has become a style statement, a personal accessory that reflects one’s identity. Despite this trend, many of these new brands remain small in scale.
Meanwhile, traditional players like VIP have grappled with competitive pressures, management reshuffles, and rising debt concerns, leaving it vulnerable in a rapidly evolving market.
Safari Industries: Adapting to Thrive
Amidst this backdrop, Safari Industries has emerged as a standout performer. Unlike its competitors, Safari has adeptly navigated the turbulent market dynamics by embracing change rather than resisting it. A key part of this transformation has been its focus on premiumisation.
💡In 2022, the company launched its Urban Jungle premium range—a move designed to offer a higher-quality product at the same price, optimising supply chain costs in the process.
Safari’s ability to adapt is further exemplified by its digital transformation. Recognising the power of the internet, the company has significantly bolstered its e-commerce presence. Today, online sales contribute to nearly one-third of Safari’s revenue—compared to VIP’s 25% share. This omnichannel strategy, combining a robust offline network with a dynamic online presence, has enabled Safari to reach a broader customer base across both urban and rural markets.
The Numbers Game
The results of these strategic initiatives are evident in the company’s market share trajectory. Safari Industries’ share has grown impressively from 12% in FY17 to 25% in FY24. Such a substantial increase is a testament to its ability to capture market momentum and gain traction amid stiff competition.
Recent performance data further underscores Safari’s strategic progress. In the third quarter of FY25, the company reported a 14% YoY revenue growth, driven by robust volume expansion of 22%, where the industry growth was somewhere around 15%.
Another interesting operational development is the new plant in Jaipur. Currently ramping up and expected to reach 10% capacity utilisation by 4QFY25, this facility represents a strategic pivot towards in-house manufacturing.
When fully operational, the Jaipur plant has the potential to generate up to Rs. 1,000 crore in revenue (65% of Safari’s FY24 revenue). Moreover, the plant significantly reduces the company’s reliance on Chinese imports, marking a decisive move towards supply chain localisation and greater operational control.
Safari’s premiumisation strategy is yielding tangible results. The company has reported annualised revenue of around Rs. 100 crore (6% of revenue) from premium product sales (Urban Jungle) and is ambitiously aiming to double this figure to Rs. 200 crore by FY26E (~10% of revenue).
However, this aggressive market capture has not come without its challenges. Safari’s EBITDA margins have experienced pressure, declining from 16% in FY23 to 11.4% in the latest quarterly results.
The drop is largely attributable to increased employee costs—up 31.3% year-on-year, reflecting the manpower additions needed for a new manufacturing unit in Jaipur—and higher advertising spend, particularly on e-commerce and Urban Jungle campaigns.
Despite these margin pressures, the company views the investment as a necessary cost in its pursuit of greater market share and industry-leading volume growth.
Looking ahead, Safari Industries is well-positioned for sustained growth despite near-term margin challenges. The management has projected a 15–18% volume growth over the next three to five years, bolstered by the strong traction of its premium segments and an expanding retail footprint.
The Price Tag
Safari Industries currently occupies a unique valuation space within the luggage sector, with few tue comparables given that VIP—its primary rival—is grappling with persistent losses. Over the past three years, the stock has traded at around 50x its one-year forward earnings. While this multiple may seem steep in isolation, when viewed alongside the robust revenue growth of 22% and EBITDA growth of 39% over FY19-FY24, the premium appears justified.
In recent months, expectations of sustained outperformance had pushed valuations slightly above historical averages. However, following the 3QFY25 results, the stock has corrected and is now re-aligned with its long-term levels.
Considering the luggage industry’s structural growth drivers, along with Safari’s strong brand positioning, product innovation, and expanding manufacturing capabilities, the company presents a compelling long-term play. Moreover, the lack of viable listed alternatives—especially as VIP continues to struggle—could attract a scarcity premium, further supporting the investment case.
Packing it Up!
The journey of Safari Industries from a relatively modest player to the fastest-growing incumbent in a transformed luggage market is a compelling case of strategic adaptation. In a sector that was once dominated by the predictable duopoly of VIP and Samsonite, Safari’s proactive measures have enabled it to capitalise on the changing market dynamics.
The company’s recent performance, particularly its impressive quarterly results and market share gains, underscores the efficacy of its strategy. While the deliberate sacrifice of short-term margins in favour of long-term growth might be seen as a challenging trade-off, it is a calculated risk that positions Safari for industry leadership.
As the luggage industry continues to evolve with new entrants and shifting consumer expectations, Safari Industries is clearly demonstrating that it is not just adapting but thriving. For those looking at the future of the luggage sector, Safari Industries is a brand to watch closely.
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