Lux Industries Bets ₹600 Crore on Massive West Bengal Mega-Hub

Lux Industries Limited is doubling down on its manufacturing capabilities. The company's apparel and innerwear arm, Lux Cozi Group, recently laid the foundation stone for a massive ₹600 crore manufacturing expansion in Dankuni, West Bengal, aiming to build one of the largest garment hubs in Asia.

The high-profile foundation ceremony saw attendance from key political and industry figures, including West Bengal Chief Minister Shri Suvendu Adhikari, MP Samik Bhattacharya, and Industry Minister Tapas Roy, underscoring the regional economic weight of the investment.

The project will expand the current Dankuni facility from 8 lakh sq. ft. to a massive 20 lakh sq. ft. The addition of 12 lakh sq. ft. of automated space will inject an extra 20 crore pieces into the group's annual production capacity, pushing Lux's total nationwide output to 36 crore pieces per year. The company expects the facility to generate 3,000 direct and 6,000 indirect jobs.

This expansion comes on the heels of stellar financial performance. Driven by aggressive brand investments—including high-decibel campaigns featuring Varun Dhawan, Hrithik Roshan, and Shraddha Kapoor—Lux Cozi Group has maintained a CAGR of over 25% for the last eight quarters, with EBITDA margins hovering comfortably between 10% and 12%.

According to company leadership, the automated Dankuni hub is a future-proofing move. While Chairman Ashok Todi highlighted the hub's role in making India a globally competitive textile leader, Financial Advisor Saurabh Bhudolia noted that advanced machinery will drastically reduce wastage and streamline operations. The project is funded through a blend of internal accruals and borrowings, targeting a five-year payback window.

News by Rahul Yelligetti.