Lux Cozi Group (Vertical 'A' of Lux Industries) marked a landmark milestone on 11 July 2026 with the foundation stone laying of its new state-of-the-art manufacturing facility at Dankuni, West Bengal. According to Business Standard, this represents one of the largest manufacturing investments in the company's history and is set to establish one of Asia's largest garment manufacturing hubs. The project will expand the existing 8 lakh sq ft facility by another 12-13 lakh sq ft, creating a 20 lakh sq ft manufacturing campus that will be highly automated and set new benchmarks in production efficiency and scale.
The expansion will add an additional 14-15 crore pieces annually to the existing 12 crore pieces produced at the Dankuni plant, boosting the Lux Cozi Group's total nationwide capacity from nearly 20 crore to approximately 36 crore pieces annually. As reported by ET Now, the new manufacturing unit will have the capacity to produce 14-15 crore pieces annually, with the first phase expected to become operational within 2-3 years and the entire facility fully operational over the next 5-6 years. Once fully operational, this highly automated facility will enable the company to meet rising domestic and global demand while cementing their position as one of the leading Indian apparel manufacturers across the world.
The expansion project is expected to generate substantial employment opportunities, creating approximately 3,000 direct and 6,000 indirect jobs. According to Business Standard, beyond manufacturing, the project is expected to create significant socio-economic impact and reinforce West Bengal's position as a preferred manufacturing destination. The additional capacity will be added to the existing production capabilities, supporting the company's growth trajectory in the competitive apparel manufacturing sector.
The company will fund the project through a combination of external borrowings and internal accruals, with expectations of achieving a payback period of five years. According to ET Now, the company expects the total borrowing for Vertical A to increase to around ₹500 crore to fund the expansion. The company is currently in discussions with lenders and is targeting a borrowing cost of 6.5-7%. The project is expected to improve operational efficiencies, expand margins, and optimize production costs while establishing new benchmarks in production efficiency and scale.
Ashok Todi, Chairman of Lux Industries Ltd, stated that the Dankuni facility would strengthen production capabilities while creating employment and supporting industrial development in West Bengal. As reported by CNBC TV18, Saket Todi, Executive Director of Lux Industries Ltd, emphasized that the new facility would enable the company to respond faster to evolving consumer demand, improve operational efficiencies, and reinforce their leadership across the innerwear and apparel industry. The stock price of Lux Industries rose nearly 2% following the announcement, with the company's shares having seen a rise of over 27% in the past 6 months. The company also indicated that advertising and marketing expenditure will remain at current levels, while management projects a 100-150 basis point boost to the bottom line over time.
