Lux Industries Ltd, an inner and outerwear maker, is adopting improved manufacturing technologies and ramping up its capacity in West Bengal.

Saket Todi, Senior Vice-President (Operations and Strategy) of the company, told BusinessLine : “Our ₹105-crore new facility at Dankuni near here is scheduled to be fully operational in the next three months.”

The upcoming integrated facility has capacity to produce two-lakh units of finished products a day.

German knitting, Italian cutting, and Japanese stitching machineries were being deployed to improve quality of the products and reduce cost, Todi said.

At the same time, three small manufacturing units in and around Kolkata with less productivity are being closed down.

“The units at Agarpara, Dhulagarh, Belgachia and Kashipur are being closed. These include that on a rented facility.”

The plan is to reduce the ₹4-crore cost of rent and turn the assets into warehouses.

“After the switchover, the operational cost is likely to come down by 16 per cent,” the official explained.

Phase II expansion

The company is also working out a ₹60-crore expansion plan in the second phase at Dankuni, to be implemented in the next three to four years.

“We are procuring additional eight to nine acres from private holders near our seven-acre complex at Dankuni,” Todi said.

This would double the capacity of the complex.

The company also have a 2-lakh piece a day capacity of economy cotton products at Tiruppur in Tamil Nadu and polyester winterwear, tracksuits and T-shirts items at Ludhiana in Punjab.

The company exports hosiery items to West and South-East Asia, Australia and Africa.

The Lux Industries stock was slightly down (1.21 per cent) on the BSE and closed at ₹613.80 on Monday.

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