Lux Industries’ expands capacity to 2 million pieces a day

 

Lux Industries Ltd., known for its innovative and demand-driven product offerings, is setting new benchmarks for quality and comfort over the years. In its constant endeavour to understand consumer requirements, Lux has focussed on a steady R&D drive resulting in improvisation of products and better reach to the target markets. It recently commissioned an integrated facility at Dankuni to ramp up its capacity in West Bengal.

Mr. Ashok Kumar Todi, Chairman

With the existing operational manufacturing facilities in Ludhiana, Tirupur, Delhi, Belgachia, Dhulagarh, Agarpara and Kashipur, the newest addition in Dankuni covering over 6 lakh sq.ft. has the potential to increase the production capacity to 20 lakh pieces a day in the next three years from 14 lakh pieces now. While over 90 per cent of the innerwear industry based in and around Kolkata with some manufacturing done in Tirupur and Tamil Nadu, Lux now has 11 units across India – in West Bengal, Uttarakhand and Tamil Nadu.

Speaking on the latest developments, Mr. Saket Todi, Senior Vice President, Lux Industries, commented: “There has been a significant margin growth owing to the enhanced operational efficiency and cost containment. Automation has benefited Lux with quality consistency. Post-optimal capacity utilisation at the Dankuni plant, our production capacity has increased by 5 lakh pieces per day leading to EBIDTA margin to the extent of 100 basis points.”

Lux Industries has deployed German knitting, Italian cutting and advanced computer-aided machines under one roof, thus substantially cutting down the number of outsourced functions and encouraging more research and development activities.

“Consolidation of major functions under one roof enables the company to benefit from scale of operations and its automated facilities lead the company to save fabric and ensure better precision. With automation like computer-aided design (CAD) and auto cutters the garment rejection rate has come down by 30 basis points. Centralised warehousing has benefited the fill rate by almost 10%, and today Lux Industries claims to have a fill rate of 94% which is one of the highest amongst the peers”, said Mr. Udit Todi, Senior Vice President, Lux Industries Ltd.

To a typically unorganized segment, the company has brought forth an institutional culture that is well reflected in its technology orientation. Continued focus on portfolio expansion in the existing product segments (men, women and kid’s inner & outer wear), venturing into new segments and penetration into the upcoming growth centres are key factors bringing out the potential for consistent and sustainable revenue growth.

 
 
 
 
 

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