Lux Industries Ltd. has achieved a total revenue of Rs. 1,140 crores, EBITDA of Rs. 158 crores and PAT of Rs. 79 crores during 2017-18. The growth has been mainly due to increase in volumes and penetration of the new markets in India. The new facility of Lux at Dankuni is now running at optimum capacity. The company which has the lowest conversion cost while manufacturing hosiery is witnessing a major upturn in the hosiery industry and is ready to take advantage of it.
Commenting on the recent trends, Mr. Ashok Kumar Todi, Chairman, said: “2017-18 has been a great year for Lux Industries. The innerwear industry is seeing a complete transformation wherein we can sense a shift from the unorganised space to the organised one. During the year, we have been able to constantly add new products and thereby have been able to gain significant market share”.
To capture the shift from the unorganised to the organised market the company has signed Mr. Amitabh Bachchan as a brand ambassador for its Venus brand. Extensive campaigns have been launched from January 2018 across a mix of media.
During FY18, Lux acquired through its subsidiary, Artimas Fashions Private Ltd., the manufacturing and marketing rights of Virat Kohli’s brand One8 known for its innovative and customer demand-driven product offerings. With One8, Lux aims to disrupt the premium innerwear segment. “We feel extremely confident about our distribution and resource strength, coupled with the youth appeal of Virat Kohli which will make One8 the most preferred brand in the premium category”, says Mr. Ashok Kumar Todi.
Lux has also approved in principle to consider merger of J.M. Hosiery & Co. Ltd. and Ebell Fashions Private Ltd. with the company. The strategic merger will lead to the presence of Lux as a whole across various market segments leading to risk mitigation and higher growth. This will also provide greater financial strength and flexibility. The company sees huge opportunities in this space and is geared up for the next leg of growth at Lux Industries.