VIP Industries is in focus as a weakening onshore yuan is positive for them since they import less than 50 percent from China. Dilip G Piramal, Chairman of VIP Industries, told CNBC-TV18 that a weakening yuan definitely helps.

“Luggage is a very narrow segment, there are not so many players. So I don’t think single-brand retailing or contract manufacturing is going to make any impact,” said Piramal.

When asked about the demand situation, he replied, “We are part of the economy. So if things improve for the economy, they will improve for us. For us, now it is like to wait and see. Our Q1 was relatively okay. We had 11 percent growth though last year same quarter we had 27 percent growth. Generally, people feel that this 11 percent growth in the current circumstances is quite good. So we are now watching – August, September are traditionally the weakest months in the entire year.”

"Weak renminbi definitely helps, it is a good trend for us", he said.

On the domestic demand, Piramal said, “In a market like us, where there are not too many people, I do not think price cuts are going to propel demand.”

US-China trade tussle helps the company as we get better deals from Chinese manufacturers, he said. “Chinese manufacturers become more dependent on us. So we can get better schemes and offers from them,” Piramal added.

“I think in the next five-ten years, definitely a lot of the low-end manufacturing from China will move to India because India is a country with a very large population. A lot of the manufacturing is moving already from China to Vietnam, Cambodia but these countries do not have so much of the population. There are so many large industries at the lower-end, readymade garments being the largest and all other consumer goods industries like shoes, toys, everything else will move out of China gradually,” he said.

First Published:Aug 29, 2019 9:51 AM IST