Enhance Sustainability
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BRANDS ENHANCE SUSTAINABILITY LUX INDUSTRIES LIMITED I ANNUAL REPORT 2019-20 Forward-looking statement This document contains statements about expected future events and financial and operating results of Lux Industries Limited, which are forward- looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward- looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the management’s discussion and analysis of the annual report. TABLE OF CONTENTS 02 07 08 17 25 30 42 46 Corporate Lux. The big How we The The Our Brands The power Our brand snapshot numbers have Chairman’s Managing Report, brands case study grown overview Director’s 2019-20 across business the years review LUX BRANDS ENHANCE SUSTAINABILITY In an uncertain world, where market realities can transform overnight, Lux has focused on one critical aspect of its business. The company has invested consistently in its brands. Launched brands. Built brands. Promoted brands. Endorsed brands. The result is that Lux has enhanced recall, sold faster and outperformed India’s hosiery sector across decades, product segments and market cycles. 56 60 64 70 72 73 74 75 147 Our Our business Business Corporate Our Board of Corporate Statutory Financial Stakeholder model enablers Social manage- Directors Information Section Section Value- Responsibility ment Creation Report, FY2019-20 Corporate snapshot AT LUX, OUR OUTPERFORMANCE IS REFLECTED IN A NUMBER OF REALITIES. Size: The Lux Group is the largest mid-segment hosiery enterprise in India. Winners: Lux comprises 7 brands generating annual revenues of more than J 100 crore each. Stability: Lux works with the largest number of trade partners in its sector in India. Spread: Lux products are accessible and available right down to rural population clusters of over 5000. Sustainability: Lux has reported a profit in all of the last ten years. 2 | Lux Industries Limited Annual Report 2019-20 | 3 OUR VALUES NAVIGATING Our track record, helping OUR EXISTENCE strengthen our foundation The business was founded in 1957 by Mr VISION Girdhari Lal Todi as Biswanath Hosiery Mills. To keep creating new benchmarks Lux Industries Limited came into being in 1995. for quality and comfort, the two Over the years, the company has established fundamentals that lay the foundation itself as a leader in the branded innerwear of our company and take it to the segment in India. epitome of success. MISSION Our quality products have To be recognised as the best Indian strengthened our recall hosiery company globally and to drive the industry towards sustainable growth and development. The Company provides a wide range of more than 100 products for men, women and children across ages, geographies and seasons. CORE VALUES Our widening distribution network To ensure complete satisfaction and has enhanced product accessibility utmost comfort for every consumer by creating top notch products. The Company’s extensive distribution network is spread across the country, comprising more To constantly bring about change in than 950+ distributors and 500,000 retailers. our methods of production through The Company exports products to a number of sustained innovation and stringent countries. quality control practices. Creating new business along with Our financial robustness has customer satisfaction is the driving helped strengthen our credit rating force behind our economic engine. Lux Industries Limited will strive to adhere The company maintained its credit rating at to the highest of ethical standards and AA for long-term bank facilities, validating its transparency in all its business dealings financial health. and transactions. 4 | Lux Industries Limited Our capacities have enhanced our Revenue by geography, FY2018-19 preparedness The Company possesses six state-of-the-art manufacturing facilities across India with a cumulative capacity of 2,000 lakh garment 11% pieces a year. The company’s manufacturing units are located in Dankuni, Srijan Industrial Logistic Park, Dhulagarh and BT Road (West Bengal), Tirupur (Tamil Nadu) and Ludhiana (Punjab). Our brand portfolio evoked sustainable margins 89% The company has invested in a focused basket of 16 brands; its Power Brands enjoy unaided brand recall for comfort, innovation and a superior price-value proposition. Domestic International Our quality standards are driven by Revenue by geography, FY2019-20 (%) credible accreditations The company has been accredited with ISO 9001:2015 certification as a result of its emphasis on qualitative consistency and is acknowledged 10.04% by Star Export House by the Government of India. Listing The equity shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange where they are traded actively. Market capitalisation was ₹2,386.28 as on 31st 89.96% March, 2020. Domestic International Annual Report 2019-20 | 5 6 | Lux Industries Limited LUX. THE BIG NUMBERS 1 1 95 (Rank), Lux among India’s (Rank), Lux among (%), Lux’s fill rate (compared mid-market innerwear innerwear exporters from to the industry average of players by volume India ~80%) 6 2000 16 Manufacturing facilities (lakh pieces per year), Number of Brands across India Sales 14 46 1500+ (%), Market share in India’s (Countries), Export Employees, FY2019-20 organised innerwear sector presence 100 5000+ 950+ Number of Lux products SKUs Distributors, FY2019-20 Annual Report 2019-20 | 7 1957 1992 1993 1994 Mr Girdhari Lal The first Lux began Lux became Todi set out to television to export the first make everyday advertisement products to hosiery brand innerwear ‘Ye Andar Ki the Middle to organise comfort a Baat Hai’, East, Africa a business reality for featuring and Europe. conference for Indians Sunny Deol, dealers. through the was launched. establishment of Biswanath Hosiery Mills. HOW WE HAVE GROWN ACROSS THE YEARS Lux commissioned Eastern India’s largest hosiery product Lux Cozi manufacturing became title plant in Dankuni, Lux became sponsor at West Bengal. the IPL the Zee Cine Comfort Awards, the Lux became one Shah Rukh Partner for world’s biggest of the primary Khan was teams like Viewer’s Choice sponsors of Kolkata engaged Kings XI Awards, seen by The shares of Knight Riders. as brand Punjab and over 700 million Lux Industries Launched Lux Cozi ambassador Pune Warriors viewers in 168 were listed on Glo, a sub brand of for ONN. India. countries. NSE and BSE. Lux Cozi. 2010 2013 2014 2015 2016 8 | Lux Industries Limited.