Lux Grp mulls merger of two unlisted entities

Hosiery major Lux Group has been strongly contemplating merger of two unlisted entities with its publicly listed outfit Lux Industries Limited.
"We are evaluating merger of two unlisted separate firms of the group with Lux Industries," Lux Industries Senior VP Udit Todi today said.
"There are two unlisted separate companies J M Hosiery and Company and Ebell Fashions that owns two brands Genx and Lyra," the company officials said.
Officials indicated that over the next few quarters a development in this regard can be known.
These two brands which are not with Lux Industries are worth Rs 350 crore. Listed Lux Industries owns 16 brands including flagship brand Lux Cozi which generates Rs 650 crore out of total Rs 950 crore topline, Group director Saket Todi said.

"Other brands ONN and Cotswool combined are worth Rs 300 crore for the group," he said.

"Lux Industries generates a turn over of Rs 950 crore out of group's Rs 1300 crore. Group will engage external experts to do the due-diligence for valuation," he said.
Todi said by 2020 the group was aiming a turnover of Rs 2000 crore from the current Rs 1300.
He also said women's brand Lyra will be expanded into intimate wear segment soon in the mid-mass segment.
Speaking about the company's latest Dankuni plant, which started with an initial investment of Rs 100 crore, Todi said it was offering cost effective benefits to the company that helped Lux Industries to post higher PAT despite sales drop due to demonetisation during the December Q3 period.