Lux Industries Ltd has announced plans to invest around ₹600 crore to expand its manufacturing facility at Dankuni in West Bengal.
The project will add 12 lakh sq. ft. to the company's existing 8 lakh sq. ft. unit, taking the total manufacturing campus to nearly 20 lakh sq. ft. The company disclosed the expansion through a stock exchange filing on July 11, 2026.
The proposed facility will add production capacity of 20 crore garment pieces a year. The existing Dankuni plant currently manufactures around 12 crore pieces annually.
After the expansion is completed, Lux Industries' total production capacity across all its manufacturing units is expected to rise from nearly 20 crore pieces to about 36 crore pieces each year.
The company said the project will be funded through a combination of internal accruals and external borrowings. It expects the investment to have a payback period of around five years.
The expansion will also bring more production processes under one roof, with automated machinery expected to reduce wastage, simplify manufacturing, and improve operating efficiency.
Along with the increase in production capacity, the project is to create around 3,000 direct jobs and another 6,000 indirect employment opportunities. The company said it has recorded a compound annual growth rate (CAGR) of more than 25% over the last eight quarters while maintaining EBITDA margins between 10% and 12%.
It has also invested nearly ₹300 crore in recent years to strengthen its brands and expand market reach.
The foundation stone for the new facility was laid at Dankuni on July 11 in the presence of government representatives and company officials.
The expansion relates to Vertical A of Lux Industries' business and forms part of its manufacturing investment programme in West Bengal.
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As of July 10, 2026, 3:30 pm, Lux Industries share price closed at ₹1,288.00, up 5.38% from the previous closing price.
The new manufacturing facility is a major capacity addition for Lux Industries, taking its planned annual production higher while supporting future manufacturing and operational requirements.
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Published on: Jul 11, 2026, 4:30 PM IST
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