Kolkata-based hosiery maker Lux Group has reworked its growth strategy to target youth, and expects to clock Rs 2,000 crore sales by 2020, on the back of premiumisation of its innerwear brands and portfolio extensions, a company executive said.
“Our focus is on creating an enduring institution that represents an attractive investment opportunity for both existing and prospective shareholders. Through our growth strategy, we are looking at a turnover of Rs 2,000 crore by 2020,” Senior Vice President, Lux Industries, Udit Todi was quoted by PTI as saying.
According to a PTI report: The company, which had launched the ONN brand of innerwear targeting younger people few years ago, is now focussing on the Rs 2,400 crore active wear market offering a casual and alternative line of clothing.
“We are entering a customized segment of active wear and with the launch we are looking at a wider reach for revenue and to establish the brand as a front runner,” Senior Vice President, Lux Industries, Saket Todi told PTI.
He pointed out that ONN registered Rs 100 crore sales in 2015-16, and is growing at a cumulative annual rate of 20 per cent annually, and expects this growth rate to continue.
Presently there are seven exclusive stores, and in the next year the company plans to open 14-15 more stores, he said. ONN is also present in 4,000 multi-brand outlets and 2,000 large format stores.
Lux Industries, which has a strong foothold in export markets including Africa, Midde East and some countries of South East Asia, is also looking at expanding its footprint in developed countries, through exports of premium innerwear.
“We are now looking at premiumising our innerwear brands. We are among the top brands in African countries, and are looking at focussing on European and US markets as well. We are now beginning exports to Australia,” Udit Todi was quoted by PTI as saying.
The company recently started operations at its new manufacturing unit in Dankuni, West Bengal last year, which has taken its production capacity to 1.4 million units, he said.