Kolkata-based ₹940 crore Lux Industries is planning to focus on its premium brand Onn, to derive better margins in the hosiery segment. It intends taking up the current turnover of the brand from ₹70 crore to ₹250 crore in the next five years and build it on the back of its exclusive outlets and film stars as ambassadors.

“Onn is growing at a CAGR of 35 per cent unlike the rest of the mass brands such as Lux Cozi and its franchise at 10-12 per cent. Our premium brand Onn is going to be the growth driver and we are also taking up its store count from the current seven to 20 exclusive branded outlets in the next two years,’’ said Udit Todi, Senior Vice-President, Lux Industries.

Onn was launched four years back with Shah Rukh Khan as its brand ambassador, and of late, it has roped in former Australian cricketer Brett Lee as its latest endorser.

In fact, Lux Industries was one of the first players in the hosiery industry to rope in celebrities for the category. It had actor Sunny Deol endorsing Lux Cozi inner wear 15 years ago and now it has Sushant Singh Rajput as its new ambassador for the mass brand.

The hosiery major spent ₹70 crore on its marketing spends, which includes roping in high profile brand ambassadors. Besides, it also has strength of 900 distributors reaching out to about five lakh outlets.

With employing working capital at ₹214 crore for the year ending in March, Lux Industries expects to grow at 10 per cent which is the same rate at which the ₹15,000-crore organised men’s inner wear hosiery category is growing currently.

Competing with brands like Jockey (Page Industries) in the premium segment, the 60-year-old company which recently listed on the NSE and BSE, has a launched new plant in West Bengal taking up 6.5 lakh sq ft space.

With this new plant, it has a total count of 11 manufacturing facilities, which also includes having a base in places such as Tirupur and Ludhiana. “Most of our plants are in West Bengal since labour is cheap and there is infrastructure for hosiery manufacturing here,’’ added Todi.

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