CCI Approves Multiples Equity Funds’ Minority Stake In VIP Industries Limited Amid Limited Market Overlaps

On 26 August 2025, the CCI approved the proposed acquisition of approximately 32% shareholding in V.I.P. Industries Limited (Target) by Multiples Equity Funds, and Mr. Mithun Padam Sacheti and Mr. Siddhartha Sacheti (collectively, the Acquirers). The acquisition was from certain existing promoters of the Target. The Target is engaged in the manufacture and sale of luggage, handbags and travel accessories in India under brands such as VIP, Skybags, Aristocrat, Alfa and Caprese. The Acquirers, through their affiliates, have investments across various sectors, including consumer goods.

For the purposes of assessment, the CCI examined the activities of the Acquirers (including their affiliates) and the Target (together referred as, the Parties). It observed horizontal overlaps in the broader luggage market and in certain narrower segments, including: (i) manufacture and sale of luggage in India; (ii) manufacture and sale of uprights; (iii) manufacture and sale of uprights in the organised segment; and (iv) manufacture and sale of backpacks (including duffle bags). The CCI kept the relevant market definition open given the limited extent of overlaps.

The CCI noted that the Target’s market shares in these segments ranged between 0–5% and 25–30%, while the Acquirers’ affiliates held only 0–5%. It also observed that these markets are characterised by several established competitors and that the transaction would result in only a limited incremental increase in market share. On this basis, the CCI found that the transaction did not raise horizontal competition concerns. The CCI also examined potential vertical linkages between the Target’s upstream manufacture of handbags and an affiliate of the Acquirers engaged in the downstream sale of handbags. It noted that the Target’s market share in handbags was in the range of 0–5%, the market is competitive, and the downstream distribution segment is fragmented. The CCI therefore found no ability or incentive for the Parties to foreclose competition.

The CCI concluded that the proposed combination was not likely to cause AAEC in India and approved the transaction.

Business Takeaway: Minority and promoter-led acquisitions in branded consumer markets are unlikely to face competition law hurdles where overlaps are limited, and effective competitors remain in the market. Even where vertical linkages exist, clearance is likely where market shares are low and distribution channels are fragmented.