Lux Industries to allocate ₹600 crore for Bengal facility, enhancing yearly production capacity.

Lux Industries Ltd plans to invest ₹600 crore to enhance its manufacturing operations in Dankuni, West Bengal, boosting the site’s annual production capacity by 20 crore pieces, which will bring the group’s total manufacturing capacity in India to approximately 36 crore pieces annually.

On Saturday, the company announced that it will expand its current facility, measuring 8 lakh sq ft, by an additional 12 lakh sq ft, resulting in a comprehensive manufacturing campus of 20 lakh sq ft. This initiative is projected to create around 3,000 direct jobs and 6,000 indirect jobs.

 
Capacity Expansion And Funding

The new capacity will be added to the current 12 crore pieces produced yearly at the Dankuni plant. The company indicated that the upgraded facility is expected to bolster both domestic and export demands while enhancing production efficiency.

Ashok Todi, Chairman of Lux Industries Ltd, remarked that the Dankuni facility will enhance production capabilities, foster job creation, and support industrial growth in West Bengal.

Saket Todi, Executive Director of Lux Industries Ltd, noted that the new facility would allow the company “to respond swiftly to changing consumer demands, enhance operational efficiencies, and solidify our leadership in the innerwear and apparel sector”.

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Five-Year Payback Targeted

The company stated that the project will be financed through a combination of external borrowing and internal funds. It anticipates that the investment will achieve a payback period of five years.

Discussing the financing and operational ramifications, Saurabh Bhudolia, Financial Advisor to Lux Cozi Group, noted that the expansion would aid in consolidating manufacturing, alleviating processing bottlenecks, and decreasing waste through the use of advanced machinery. He added that the project is expected to enhance operational efficiency, widen margins, and optimize production costs.

A brief look at the company’s stock performance shows that Lux Industries shares increased by over 4% on Friday. Over the past six months, the company’s shares have appreciated by more than 27%. However, the stock still remains about 30% below its 52-week high of ₹1,823.35, with the current price at ₹1,276.50 per piece.