Lux Industries laid the foundation stone for a ₹600 crore automated manufacturing facility at Dankuni, West Bengal, on July 11, 2026. The project, executed by its Lux Cozi Group (Vertical A), aims to create one of Asia's largest garment manufacturing plants. The expansion is designed to meet rising domestic and global demand while generating significant employment in the region.

Expansion Overview

The project entails a total investment of ₹600 crore, funded through a mix of external borrowings and internal accruals. The company will expand its existing 8 lakh sq. ft. Dankuni facility by adding 12 lakh sq. ft. of manufacturing and allied infrastructure, bringing the total built-up area to 20 lakh sq. ft. The facility is anticipated to achieve a payback period of five years.

Capacity and Financial Performance

The Dankuni facility's current capacity stands at 12 crore pieces. The expansion adds an annual capacity of 20 crore pieces, boosting the Lux Cozi Group's total nationwide capacity from nearly 20 crore to approximately 36 crore pieces annually. Over the last eight quarters, the group has delivered a compound annual growth rate (CAGR) exceeding 25%, driven by robust consumer demand and brand-building initiatives. The business has maintained healthy EBITDA margins of 10–12%.

Strategic Impact and Employment

The highly automated facility is expected to generate approximately 3,000 direct and 6,000 indirect employment opportunities, totalling around 9,000 jobs. The plant is designed to eliminate regional processing bottlenecks and reduce wastage using advanced machinery. In recent years, the company has invested nearly ₹300 crore towards strengthening its brands, including partnerships with celebrities such as Varun Dhawan, Jacqueline Fernandez, and Hrithik Roshan to enhance market reach.

Lux Industries Limited has entered into a Brand Licensing Agreement with RILUK IPCO Limited to use the Reebok trademark in India. The agreement grants lux industries exclusive rights to design, manufacture, and sell men's and women's innerwear and thermal wear products within the territory. The deal is effective from the current year and includes an option to renew for ten years.

The agreement was executed between RILUK IPCO Limited (RIL), a private limited company under the laws of England and Wales acting as the Licensor, and Lux Industries Limited - Vertical B, acting as the Licensee. The licensed trademarks include the "Reebok" brand. The company stated that the volume and value of products to be sold under the license cannot be ascertained at this time.

Key Terms of the Agreement

The significant terms of the Brand Licensing Agreement include:

• Exclusivity: Vertical B of the company holds exclusive rights within India for the licensed products.
• Product Scope: The license covers designing, manufacturing, and selling men's and women's innerwear and thermal wear.
• Governance: The licensor does not have the right to appoint any director on the Board of the company. No shares shall be issued to the licensor, and there are no restrictions on any change in the capital structure of the company.

The company confirmed that it does not hold any stake in RILUK IPCO Limited. Furthermore, the transaction does not fall within related party transactions, and the licensor is not a related party to the company. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE150G01020/4a665348b20f4463.pdf