Kolkata-based Lux Industries is planning to enter the woman’s lingerie category to drive better margins in the hosiery segment.

It will be extending its woman’s legging brand Lyra into lingerie and pitting itself against domestic players like Lovable in the mid-market segment.

Udit Todi, Senior Vice-President, Lux Industries, told BusinessLine that, “Margins in lingerie are going to be more than the leggings category with almost an extra 400 bps. But it is going to be ä challenging category since it is fragmented with a lot of unorganised players.”

The BSE and NSE-listed company entered the woman’s segment with its Lyra brand about four years ago and had roped in actor Prachi Desai as its brand ambassador. It has set a revenue target of ₹30 crore in the first year from the lingerie category.

“We entered the woman’s legging category when there was no branded player in the segment and Lyra already has a turnover of ₹160 crore. But margins in the lingerie segment are expected to be better in the ₹8,000-crore woman’s lingerie segment which is growing at about 20 per cent,’’ he added.

The ₹940-crore hosiery major already has brands like Onn and Lux Cozi in its portfolio and has been trying to build them with high-profile ambassadors like actor Shah Rukh Khan and former Australian cricketer Brett Lee in the inner wear and casual wear category.

“We are trying to move away from being a hosiery to a lifestyle player and want to have a premium image in the casual wear segment. In fact this was the reason we got Brett Lee on board to take our brand like Onn to Australia a year ago,’’ added Todi.

After entering Australia, Lux Industries is now planning to enter new markets in western Europe with its hosiery and casual wear brands like Onn and Lux Cozi.

“Exports are at about ₹120 crore and we want to take our brands to developed countries since we want to build a portfolio of premium products,’’ he added.

With 12 manufacturing locations, Lux Industries is not planning any additional capex this year.

“Last year we had a capex of ₹100 crore and this year we do not plan to have any additional capex. New categories like lingerie are likely to get outsourced,’’ he added.

The ₹23,000-crore hoisery market is growing at about 10 per cent with the unorganised segment comprising a majority.

However, with GST coming in, Lux Industries is hoping to have a more level playing field with the unorganised players.

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