Kolkata-based Lux Industries, having around 14 per cent market share in the organised men’s innerwear market, has announced massive investment of Rs. 110 crore.
The company, primarily catering to the economy and mid-premium segments, is setting up manufacturing and storage facilities in next 1 to 2 years, which is expected to generate incremental sales of Rs. 400 crore once it is operational.
In a statement to the stock exchanges, the company said that the funding will be through internal accruals. As of 31 December 2020, they had a cash balance of Rs. 140 crore.
The company has identified a land parcel measuring the construction area of about 4.6 lakh square feet of which nearly 20-30 per cent will be used for manufacturing and the rest for warehousing, storage and finishing facilities.
Ashok Kumar Todi, Chairman of the company said, “Our flexible manufacturing approach has made us more agile in responding to strong demand estimation. The new investment will further augment our ability to act swiftly and improve our market share in existing segments as well as new segments like kids and women innerwear.”
He further added that despite the advent of COVID-19, the company’s performance continues to remain strong, and it continues to see robust demand.
Pradip Todi, MD of the company said that the management expects to maintain its net cash status positive even after completing the Capex backed by the strong operating cash flow and focus on reducing working capital further.
Lux Industries has nearly 16 home-grown brands including GenX and Lyra.