Lux Industries Greenlits ₹600 Cr Capex to Build One of Asia’s Largest Garment Plants

Synopsis: Lux Industries Limited has approved a Rs. 600 crore capacity expansion at its Dankuni manufacturing facility in West Bengal. The project is expected to make the plant one of Asia’s largest garment manufacturing facilities, increase production capacity by up to 20 crore pieces annually, and generate incremental revenue of up to Rs. 1,000 crore.

Shares of Lux Industries Limited are likely to remain in focus after the company’s Board approved a Rs. 600 crore capacity expansion project at its Dankuni manufacturing facility in West Bengal. The expansion is aimed at strengthening production capabilities, meeting rising demand, and supporting the company’s long-term growth strategy.

Lux Industries Limited has a total market capitalization of approximately Rs. 3,824.82 crore. The company’s shares were trading at Rs. 1271.80 apiece on the stock exchange, up by 2.91 percent. The stock has gained 4.43 percent over the last five trading sessions, while it has declined 3.06 percent over the last month. The stock touched a 52-week high of Rs. 1823.35 and a 52-week low of Rs. 824.

According to the company’s exchange filing, the Board has approved a total project cost of Rs. 600 crore, including the value of land acquired over the past few years and around Rs. 450 crore of fresh capital expenditure for expanding the manufacturing capacity of Vertical A at its Dankuni facility. The project will add nearly 12 lakh square feet of manufacturing and allied infrastructure, taking the facility’s total built-up area to approximately 20 lakh square feet. The expansion is expected to be completed in phases over the next six years and has an estimated payback period of around five years.

Upon completion, the Dankuni facility is expected to become one of Asia’s largest garment manufacturing facilities. The expansion will increase the existing manufacturing capacity from approximately 12 crore pieces to an additional 18–20 crore pieces, while creating nearly 3,000 direct and 6,000 indirect employment opportunities in West Bengal. The company expects the expanded facility to generate incremental annual revenue of Rs. 900 crore to Rs. 1,000 crore once optimum capacity utilization is achieved. The project will be funded through a combination of internal accruals and debt.

The investment reflects Lux Industries’ confidence in the long-term growth of India’s organised innerwear and apparel market. Rising disposable incomes, increasing preference for branded innerwear, premiumisation, expanding retail distribution, and growing penetration of e-commerce continue to support demand across the hosiery and apparel segments. Higher manufacturing capacity will also enable the company to improve economies of scale, enhance operating efficiency, and cater to both domestic and export opportunities.

For investors, the expansion represents a significant long-term growth initiative rather than a short-term earnings trigger. While the project will require substantial capital investment over the coming years, the planned increase in production capacity and the potential to generate up to Rs. 1,000 crore in additional annual revenue could materially strengthen the company’s revenue base and market position over time. The estimated five-year payback period also indicates management’s confidence in demand visibility and future capacity utilisation.

Incorporated in 1995, Lux Industries Limited is one of India’s leading innerwear and hosiery manufacturers, with an estimated 15 percent share of the organised hosiery market. The company manufactures and markets innerwear, thermals, casual wear, and apparel under multiple brands, with ‘LUX’ serving as its flagship brand.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses arising from decisions based on this article. Please consult your investment advisor before investing.

The post Lux Industries Greenlits ₹600 Cr Capex to Build One of Asia’s Largest Garment Plants appeared first on Trade Brains.