Lux Industries shifts to automated garment production with Dankuni plant expansion

Lux Industries has officially broken ground on a monumental Rs 600 crore manufacturing expansion at its Dankuni facility in West Bengal, signaling a strategic shift to high-volume, automated garment production. By adding 12 lakh sq ft to its existing 8 lakh sq ft footprint, the company is set to transform the site into one of Asia’s largest integrated garmenting hubs. This expansion is designed to lift the facility’s annual production capacity from 12 crore pieces to approximately 32 crore, effectively mitigating current capacity constraints that have historically capped output. Saket Todi, Executive Director notes, the investment represents a long-term commitment to modernizing infrastructure, allowing the company to respond with greater agility to both domestic festive demand and international export requirements.

Strategic alignment and operational efficiency

The expansion serves as the cornerstone of the company’s broader strategy to consolidate manufacturing, eliminate regional processing bottlenecks, and optimize production costs. With the project slated for a five-year payback period, the company is leveraging a mix of internal accruals and debt to finance the initiative. This automated facility is expected to play a vital role in supporting the group's premiumization agenda, particularly for the Lux Cozi and ONN brands, by improving throughput and reducing wastage. Following the recent Reebok licensing agreement, this infrastructure boost provides the necessary runway to scale high-margin product categories. As the apparel sector navigates evolving consumer preferences, this large-scale capex project underscores a shift toward technology-driven manufacturing, positioning the group to sustain its leadership within India’s competitive mid-market innerwear and hosiery landscape.

A dominant player in men’s innerwear and casual wear market

Lux Industries is a leading Indian apparel manufacturer specializing in innerwear, hosiery, and casual wear for men, women, and children. Key brands include Lux Cozi, ONN, and Lyra. The company focuses on expanding its premium portfolio and automated manufacturing capabilities. Historically founded in 1957, it remains a dominant market player.