Lux Targets R2,200 Crore Revenue by 2020
Lux is targeting a turnover of R2,200 crore by 2020. The company manufactures garment pieces worth R20 crore a year and has established its presence across the manufacturing value chain (yarn outsourcing to in-house knitting, processing and stitching operations), strengthening its cost leadership.
Lux currently has nearly 350 circular knitting machines and fully automated in-house stitching units. The extensive distribution relationships have helped replenish sales with speed. The large pan-India distributor family (950 across India) has enhanced product accessibility.
The company’s Dankuni factory in West Bengal is equipped to manufacture five lakh pieces of knitted products a day, the largest in India’s innerwear textile sector. The plant is a new state-of-the-art spread over 12 lakh sq. ft. It is extensively integrated from knitting to cutting, making it possible to deliver products speedily, coupled with enhanced value addition.
In 2017-18, Lux announced its proposal to merge two group constituents, JM Hosiery and Ebell Fashions with itself. JM Hosiery owns the men’s brand GenX, and Ebell Fashions owns the women’s brand Lyra. Their merger with Lux will be complementary and profitable. India’s innerwear market was R24,000 crore in 2015 and is projected to grow to R47,000 crore by 2020.