Lux Industries is planning to foray into newer segments and geographies, expand multi-channel footprint and ramp up exports by venturing into newer countries to grow sales.
The dominant player in the men’s innerwear segment is looking to expand its athleisure and outerwear product portfolio, particularly for women and kids. The company had clocked a turnover of around ₹2,300 crore in 2021-22.
Nearly 34 per cent of its sales currently come from Northern India, while Eastern and Western India accounts for close to 23 per cent each. It is looking to ramp up presence in South India, which currently accounts for about four per cent of its total sales, the company said in an investor presentation.
The company’s products are currently available across 1,170 dealers’ network and over two lakh multi-brand outlets and nine EBOs (exclusive brand outlets). It has set a target of ₹100 crore in revenue from online sales in the next three years.
Exports currently account for around seven per cent of its total turnover and it plans to grow exports revenue by 60 per cent in five years.
It is currently present across 46 countries and plans are afoot to increase it to 60 countries by 2025.
Focus on premium
The company is looking to increase the share of premium products to its total sales. Its revenue from premium products stood at ₹246 crore till last December and it plans to scale it up to ₹500 crore by FY25.
The share of revenue from the value (economy) segment stood at 28 per cent in value terms and 46 per cent in volume terms upto December 2022, down from 32 per cent and 50 per cent, respectively during the same period last year.
However, the semi-premium and premium segments have been growing on a year-on-year basis with the share of sub-premium segment growing to 57 per cent (55 per cent) in value terms and 43 per cent (40 per cent) in volume terms during the period while that of premium growing to 15 per cent (13 per cent) and 11 per cent (10 per cent), respectively.
Lux recently forayed into the premium segment with One8 with a product portfolio comprising of innerwear, loungewear and sleepwear. The brand, which has clocked sales worth ₹19 crore year-to-date upto December 2022, is projected to grow seven times (close to ₹106 crore) by FY25. It has roped in Virat Kohli as the brand ambassador.