Lux Industries Ltd Approves Major Capacity Expansion at Dankuni Facility
Lux Industries Ltd has announced significant plans for the expansion of manufacturing capabilities at its Dankuni facility in West Bengal, following a board meeting held on July 4, 2026. The company approved a substantial project aimed at scaling up operations and catering to future market demand.The Board approved a total project cost amounting to Rs. 600 crores. This investment covers both the acquisition of land over recent years and new capital expenditure valued at approximately Rs. 450 crores, which is designated for the capacity expansion in Dankuni.
The proposed expansion will add roughly 12 lakh square feet of manufacturing and allied infrastructure. With this addition, the facility's total built-up footprint is expected to reach around 20 lakh square feet. The project has been projected to have a payback period of approximately five years.
Upon reaching optimum capacity utilization, Lux Industries expects Vertical A of its operations to generate an incremental annual revenue ranging from Rs. 900 crores to Rs. 1,000 crores.
The expanded facility is anticipated to become one of Asia's largest garment manufacturing centers. Furthermore, the project is expected to bolster the regional economy by creating approximately 3,000 direct and 6,000 indirect employment opportunities within the state of West Bengal. The capital expenditure allocated for this expansion will primarily focus on enhancing both manufacturing and storage capacities.
Operational Details of Capacity Expansion
The details pertaining to the capacity enhancement of Vertical A at Dankuni are summarized below:| Parameter | Detail |
|---|---|
| Existing capacity utilization | Approximately 80% |
| Proposed capacity addition | 18-20 crores pieces (approx) |
| Investment Required | Rs. 450 crores plus land value |
| Completion Timeline | Expansion expected in a phase manner over approximately 6 years |
| Financing Mode | Internal Accruals and Debt |
The rationale behind the expansion is stated as catering to the company's future growth plans and addressing increasing market demand, according to the operational details provided.
LUXIND Stock Price Movement
On Friday, Lux Industries Limited shares edged higher to close at ₹1244.6 after gaining ₹4.20 or 0.34%. The equity saw 41,826 shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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