Lux Industries Limited, one of India’s largest hosiery producer and exporter announced a greenfield expansion with a capex of Rs. 110 crores. Mr. Ashok Kumar Todi, Chairman said “We have already identified a land parcel with a construction area of around 4,60,000 sq. ft. Of this area, around 20% to 30% will be used for manufacturing units and balance for warehousing, storage, and finishing facilities.
The capex will be completed over the next 12-18 months and will be funded through internal accruals. With this investment, we are expecting to generate an incremental sale of around Rs. 400 crores.”
Lux is also accelerating its growth driver via way of new expansions to capture the market share Women’s as well as Kids segment. The company clocked revenues of Rs. 1,965 crores, growth of 17%.
“The innerwear industry is constantly evolving, and we have always been at the forefront of this evolution, having implemented innovative ways of offering differentiated products in the market by undertaking breakthrough marketing and brand promotion activities.
Going forward, we believe that there will be a pick-up in consumption as the vaccination rate improves and the local restrictions start to ease out which should build positive momentum for the entire industry. The economic recovery will be back on track in the next few months as we had witnessed in Q2 and Q3 of FY21. These factors complemented by our efficient business model will give us sustained growth momentum in the future and as one of the leading players in this space, we are sure to benefit the maximum from it”, he added.
Mr. Pradip Kumar Todi, Managing Director said, “In Q4 FY21 we have completed the merger of J. M. Hosiery & Co. Limited (JMHL) and Ebell Fashions Private Limited (EFPL) with the Company. The merger of these two companies with Lux Industries will strengthen our presence across geographies and product categories and bring in a lot of operational and financial synergies.
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