Lux Industries’ merger to increase consolidated revenues to Rs 1,800 crore

The merger of group companies with itself will increase Lux Industries’ consolidated revenue to Rs 1,800 crore. Profit after tax of the consolidated unit of Lux Industries would increase to Rs 177 crore from the present Rs 122 crore. The current revenue of the company is Rs 1,210 crore.

Eearnings per share of the consolidated firm would go up to Rs 58.8 from Rs 48.8 currently. Ashok Todi, Chairman says, merger will accelerate the company’s single market strategy and single company brand image through merger of J M Hosiery, which deals majorly in the men’s brand GenX and merger of Ebell Fashions, which deals largely in the women’s brand Lyra.”

Todi says, merger enables them to increase their share in overall wardrobe spending by offering a value-added product in mid-economy and mid-premium price category. Incorporated in 1995, Lux Industries has a market share of 14-15 per cent of the organized men’s innerwear industry.