Prime Highlights
- Lux Industries will invest ₹600 crore to expand its Dankuni manufacturing facility, increasing annual production capacity by 20 crore pieces.
- The expansion is expected to create around 9,000 jobs, improve production efficiency and support both domestic and export demand.
Key Facts
- Lux Industries Ltd is an Indian innerwear and apparel manufacturer with production facilities across the country.
- The expansion will increase the group’s total annual manufacturing capacity to around 36 crore pieces and is expected to achieve a payback period of five years.
Background
Lux Industries Ltd is making an investment worth ₹600 crores to enhance its production plant at Dankuni, West Bengal, to increase production capacity. The expansion of the facility would enable the company to increase its annual production capacity to 20 crores of pieces, which would make their total annual production capacity 36 crores in India.
The company plans to build a 20 lakh square foot integrated manufacturing campus by adding 12 lakh square feet to its current 8 lakh square foot manufacturing facility. The project is expected to create around 3,000 direct jobs and 6,000 indirect jobs while supporting industrial growth in the state.
The Dankuni plant’s current yearly production of 12 crore pieces will be augmented by the new capacity. The company said the larger facility will help meet domestic and export demand while improving production efficiency.
According to Chairman Ashok Todi, the expansion would boost West Bengal’s economic development, improve the company’s production capacity, and generate job opportunities. Executive Director Saket Todi said the new facility would help the company respond faster to changing consumer demand, improve operational efficiency and strengthen its position in the innerwear and apparel market.
A combination of external borrowing and internal accruals will be used to finance the project. The company expects the investment to recover its cost within five years. Financial Advisor Saurabh Bhudolia said the expansion will reduce production bottlenecks, lower wastage through advanced machinery and improve operating margins by optimising production costs.
Lux Industries’ shares rose more than 4% during the week. The stock has gained over 27% in the past six months but remains around 30% below its 52-week high.