Indian luggage sector to benefit from revenge travel, formalization- What does this mean for Brand concepts

The Indian luggage sector, which in the past was dominated by non-branded players, has shifted markedly to the branded segment.

Rating agency Crisil estimates the luggage market at Rs 15,000 crore, with the organized players having a 40% share and is expected to clock a CAGR of 15 percent over the next 3-5 years, buoyed by a strong upswing in post-Covid travel, opening of offices and a marked shift towards the branded segment,

Amidst such industry tailwinds, Brand Concepts aspires to cross Rs 500 crore revenue in four years from its current level of Rs  234 crore FY24 TTM. They aim to establish themselves not only as a fashion brand but also as a dependable name in the travel and accessories industry.

The company has been showcasing 80-90% annual revenue growth in the last two to three years. In FY23, it achieved a turnover of Rs 163 crore—an 89% growth compared to Rs 86 crore in FY22. Its net revenue stood at Rs 45 crore in FY21.


Brand Concepts Financial statements

In the fiscal year 2023, Brand Concepts saw a substantial increase in revenue, surging by 89% to reach ₹163.22 crore as opposed to ₹86.17 crore in FY2022. Analyzing a span of four years, encompassing FY2020 to FY2023, the company displayed a  Compound Annual Growth Rate (CAGR) of 32% in revenue.

Simultaneously, there was a noteworthy upturn in net profit, experiencing a 1221% increase from ₹-6 crore in FY2021 to ₹10 crore in FY2023.

In FY23, Brand Concepts maintained favourable financial metrics with a Return on Equity (ROE) of 43.29% and Return on Capital Employed (ROCE) of 31.10%.


Brand Concepts specializes in the manufacturing of bags, backpacks & fashion accessories for the Indian & International markets- The company produces a range of trendy bags such as laptop bags, duffle and gym bags, rucksacks, school backpacks, handbags, clutches, men’s belts and wallets, and luggage bags.

Brand Concepts products

The company operates under three divisions all three of which are exciting product categories

  1.  Travel Gears: Luggage Trolleys, Backpacks
  2. Small Leather Goods: Belts & Wallets for both Men & Women
  3. Women Handbags and Lifestyle accessories

The company works with valued brands like Tommy Hilfiger, Aeropostale, and United Colors of Benetton. The in-house brands include Sugarush and The Vertical.

Sugarush – In Sugarush the company offers women Handbag slings, totes, and wallets

The Vertical- In the Vertical the company offers luggage and backpack in more affordable range targeted towards the young value seeker audience

Business Model

The Company enters into franchise or trademark license agreements with reputed brands. In 2011 Brand Concepts secured the license for manufacturing of Tommy Hilfiger’s bags and backpacks—marking a pivotal moment for the company. Brand Concepts currently has four exclusive Tommy travel gear outlets in India.

Trademark license agreements – Brands such as Tommy Hilfiger often diversify into product categories beyond their core specialty after experiencing significant growth to become lifestyle brands. “They typically achieve this expansion by collaborating with experts with the know-how in designing, manufacturing, and distributing specific categories within a given country. In exchange for using the brand name, these Brands take a portion of the revenue generated from these partnerships.

In simple terms, the company designs, develops, manufactures, markets, and sells the third-party products of top brands.

The company does Trademark license agreements with Brands such as Tommy Hilfiger, Aeropostale,and Benetton under its portfolio and is eying on adding more international brands under its umbrella


The company sells its products through 

Company-owned outlets: The Company operates eighteen (18) Company Owned Company Operated (COCO) outlets, each offering a varied range of products from luggage to small leather goods.

Franchisee stores: There are Fourteen (14) Franchisee Owned Company Operated (FOCO) stores that supplement the Company’s retail operations. These stores are solely dedicated to the Company’s products.

MBOs / Retail: As a strategy to enhance capital efficiency, the Company is in the process of transitioning to a master distributor model. This involves partnerships with various Multi-Brand Outlets (MBOs) across different cities and zones.

Third-Party online platforms: The Company maintains a digital footprint on E-commerce platforms such as Myntra and Amazon, broadening its customer base.

Proprietary online platform: The Company has initiated its own online selling platform,, which aims to offer a seamless online-to-offline customer experience. This platform is fully integrated with the Company’s physical outlets, which also go by the name ‘BAGLINE’.

Brand Concepts revenue breakup

LRFS: Licensor Flagship Stores (Tommy Hilfiger Stores) || LFS : Large Format Stores || COCO : Company Owned Company Operated Outlets || FOFO : Franchisee Owned Franchisee Operated outlets || DND : Dealer and Distributor


Brand Concepts currently owns 37 stores under respective models. However, the company aspires to increase this number to an impressive 100 in the next 24 months and one new store will incur a cost of 40-50 Lakh per store. This could significantly fuel the company’s growth and make the claim of achieving a 500 crore target even more realistic.

Now, here comes the main question: Is a revenue target of 500 crore achievable?

The company currently derives 85% of its revenue from a licensing agreement with Tommy Hilfiger, posing a significant risk due to this heavy dependence. The company has incorporated additional brands such as Aeropostale and Benetton to mitigate this risk and diversify its portfolio. Furthermore, it is exploring partnerships with 2-3 international brands to drive future growth.The company is also expanding its retail footprint by increasing its store count to 100, with a focus on penetrating Tier 2 and Tier 3 cities. Concurrently, it is enhancing brand awareness through advertising campaigns, including a successful World Cup campaign, and has recently appointed Arjun Rampal as the brand ambassador for Bagline. Given these growth initiatives, a trustworthy management team, and the company’s consistent execution, we are confident that it can achieve a revenue target of Rs 500 crores within the next 3-4 years.

Also, the company use to outsource majority of manufacturing part to China. Now, to derisk the supply chain company is setting up a hard luggage and soft luggage manufacturing plant in Indore with an investment of Rs.50 Crs.


Brand concepts Valuations

Brand Concepts has been commanding a P/E of 68 due to its high growth and expected margin expansions. Even if its P/E derates to the level of 60, we expect a significant growth in expected EPS, which would further boost the share price to the levels of 1500.


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