The company said on Saturday that it will expand its existing 8 lakh sq ft facility by another 12 lakh sq ft, creating a 20 lakh sq ft manufacturing campus. The project is expected to generate around 3,000 direct and 6,000 indirect jobs.
Capacity Expansion And Funding
The additional capacity will be added to the existing 12 crore pieces produced annually at the Dankuni plant. The company said the expanded facility is expected to support both domestic and export demand while improving production efficiency.
Commenting on the investment, Ashok Todi, Chairman of Lux Industries Ltd, said that the Dankuni facility would strengthen production capabilities while creating employment and supporting industrial development in West Bengal.
Saket Todi, Executive Director of Lux Industries Ltd, said the new facility would enable the company “to respond faster to evolving consumer demand, improve operational efficiencies and reinforce our leadership across the innerwear and apparel industry”.
Five-Year Payback Targeted
The company said the project will be funded through a mix of external borrowings and internal accruals. It expects the investment to achieve a payback period of five years.
Speaking on the financing and operational impact, Saurabh Bhudolia, Financial Advisor to Lux Cozi Group, said the expansion would help consolidate manufacturing, reduce processing bottlenecks and lower wastage through advanced machinery. He added that the project is expected to improve operational efficiencies, expand margins and optimise production costs.
When we take a quick look at the performance of the company shares. The stock price of Lux Industries rose over 4% on Friday. In the past 6 months of trade, the company’s shares have seen a rise of over 27%. The stock still, however, sits at a 30% difference from its 52-week high mark of ₹1,823.35. The current price stands at ₹1,276.50 per piece.
(Edited by : Juviraj Anchil)
