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Last Updated : Oct 06, 2016 01:40 PM IST | Source: CNBC-TV18

Optimistic about festive season sales this year: VIP

In an interview with CNBC-TV18, VIP Industries Chairman Dilip G Piramal talked about his outlook on the festive season and business in general.

In an interview with CNBC-TV18, VIP Industries Chairman Dilip G Piramal talked about his outlook on the festive season and business in general.

Below is the verbatim transcript of Dilip G Piramal's interview to Latha Venkatesh & Anuj Singhal.

Anuj: How are the pre-festive sales looking like, of course, there has been a big online sale but overall how are sales looking and what kind of festive season, do you think, will have this time?

A: We are looking forward to quite an optimistic festive season because the general portends are good and the market is poised for a good takeoff. I was reading this morning that airlines have increased the capacities for the winter season quite substantially and we are directly related to the travel industry. Therefore, things look good.

Latha: What is a good hunch, 10-15 percent revenue growth?

A: Anywhere between 10 and 15 percent.

Latha: How are margins shaping up? Raw material costs, have they bottomed out, how much can you take price increases?

A: This year our margins have been good. The first quarter also showed increased margins for us, so we are in a comfortable situation.

Latha: So you do better than 13.5?

A: The first quarter is very large, so the margins go up a little bit because some of the expenses are fixed but by and large there is an improvement in the same corresponding quarter of last year.

Anuj: Samsonite has been aggressive. It has gained some market share as well. How are things looking now?

A: In fact on the contrary for the last two years particularly last year we have been gaining market share, so we are very optimistic and confident.

Anuj: Sixty percent right now, which is quite good but do you have room to increase it further or is 60 percent good enough?

A: It is not 60 percent, it's slightly over 50 percent and 60 percent is in some segments but overall it is slightly over 50 percent which is very good. I think trying to increase market share over and above this, becomes very expensive, so it is not worth a target.

Latha: What is your advertisement expense as a percentage of sales? Do you see that rising?

A: We have been consistent at about 6 percent.

Latha: No plans to increase that?

A: It is not required, in fact at the moment we are the only company which is substantially advertising.

Anuj: What about online sales? As an industry, you still do not see this particular segment, for example on Flipkart or Amazon going forward?

A: It is increasing substantially. The online sales are increasing well.

Anuj: Can you give some numbers?

A: Right now there are no numbers, this is a silent period.

Latha: How many stores are you adding and what is the directional improvement you are seeing in same store sales growth?

A: Yes, same store sales growth is very good especially our company run stores, the growth is quite good. Right now we do not have too many plans on the anvil but we are working on that and let's see, our plans will get finalised by the end of this quarter.

Latha: When you say same store sales are very good, they are better than last year?

A: Yes.

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First Published on Oct 6, 2016 11:59 am
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