NEW DELHI, July 10: Kolkata-based hosiery maker Lux Industries is aiming to double its turnover to up to Rs 2,000 crore in next five years banking on its portfolio extension and new export markets.
The company, which has forayed into mid to premium women’s wear through its brand Lyra, owned by its sister concern Ebell Fashion, is sensing a good opportunity in this segment.
Besides, Lux Industries is also focusing in global markets like Europe and Australia while keeping acquisition options open to achieve its target.
“We are looking for 10 to 12 per cent year-on-year growth in next five years and aiming at Rs 1,800 to Rs 2,000 crore sales by FY 2020-21,” Lux Industries Senior Vice President Udit Todi told PTI.
Lux Industries, which has recently opted for a stock split of 1:5, had a turnover of Rs 940.86 crore in 2015-16.
The company, which is present in the mass segment with its brands as Lux Cozi and Lux Venus is now focusing on premium and mid to premium segments with its brand ONN and women’s wear brand Lyra.
It is also exploring youth segments with its brand GenX, which caters to the casual and lounge wear for them.
“We felt that mid to premium market is a big market right now and its most profitable market to operate in, so we have launched brand Lyra,” said Todi.
Presently, its premium brand ONN, which is endorsed by Shahrukh Khan, is contributing around 10 per cent of total sales.
“ONN contribution is increasing almost 50 per cent year on year and would acquire around 25 per cent of our total topline in next five years,” he said.
At present, Lux Industries has seven brand outlets for ONN and has plans to increase it to 20 by end of this year, Todi said.
Over inorganic growth of the company, he said:”We are also looking for other avenues of growth as brand acquisition, which would help us to boost our turnover”.
On exports, which contributes 12 per cent of its total topline, the company is exploring markets in Australia and Europe. Presently it is exporting to over 65 countries under its brand Lux, primarily to Middle East and African countries.
“We are exploring European markets as well. We are very bullish on exports… We are also exploring Australia and have roped in cricketer Brett Lee for endorsing our brand there,” said Todi.
He further added:” As we are exploring more and more market, share percentage of exports would go up in our total topline in coming years”.
On June 15, Lux Industries has commissioned its new plant at Dankuni in West Bengal, investing about Rs 100 crore and is expecting it to improve its EBIDTA margins because of new technology used in it. (PTI)
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