MUMBAI: Samsonite, the world’s biggest luggage maker has agreed to buy luxury bag rival Tumi Holdings for $1.8 billion in a move to access premium end of the market. While the acquisition will help Samsonite get a stronghold in the higher-end business primarily for European and Asian markets, its global chief executive Ramesh Tainwala said India is still a nascent market for brand such as Tumi. “The market for luxury bags is still very small in India and Tumi might not be be relevant right now. But we will keep evaluating opportunity for Tumi as our own brand Black Label has met with limited success,” Tainwala told ET. “Samsonite is still considered premium in India despite the brand being a mid-market one globally.” Tumi’s luggage are priced at $500 and above, higher than Samsonite that sells at around $300 and its lower-end brand American Tourister that cost $100 and below. Samsonite, which was founded in Colorado, US, has shifted its base in Asia in recent years in line with high demand from markets including India and China. In fact, after the 2008-09 global meltdown when it was struggling for growth, its US retail unit had filed for bankruptcy-court protection with the goal of cutting its store count in half in a bid to boost earning. Two years later, Tainwala successfully managed to raise $1.25 billion through Samsonite’s Hong Kong initial public offering. Samsonite has been on an acquisition spree especially in the upmarket segment – it has acquired High Sierra and Hartmann brands in 2012 and Lipault and Speck in 2014. However, the company in India had for long been focused on selling sophisticated products at Rs 10,000 and mass-premium brand American Tourister that has price-tags of Rs 5,000 and above. However, they haven’t been able to grab market share in a country where more than half the luggage market is at below 5,000 price point which rival VIP Industries dominates. That will now change, said Tainwala. “We tried entering the segment with AT which eroded the brand equity of its mother brand American Tourister. “We have been testing our new brand – Kamiliant – in India and will launch it this month at price point below Rs5000,” added Tainwala who was appointed its global chief in October 2014. “We hope to grow by 12% in the next three years in India.” Samsonite’s global turnover is more than times larger than VIP’s, and in India it equals the latter’s net sales at Rs 1400 crore. However, the company has had its share of struggle in India when it entered the country in early 90’s. In fact, Tainwala — originally an entrepreneur in the plastic processing and consumer goods industry and a vendor to the luggage behemoth — signed a 40-60 joint venture with Samsonite nearly two decades ago to form Samsonite South Asia Pvt Ltd when the American firm was on the verge of exiting India. Two years later, when the Indian business had a turnaround with high sales traction, Samsonite convinced him to join as an employee to head its South East Asia and Middle East region based out of Hong Kong.