Synopsis: Lux Industries announces a ₹600 crore expansion of its Dankuni manufacturing facility in West Bengal to establish one of Asia's largest automated garment manufacturing hubs, significantly increasing production capacity, creating 9,000 jobs, and strengthening India's textile manufacturing ecosystem.
Lux Industries has announced a ₹600 crore investment to expand its manufacturing facility at Dankuni in West Bengal, a move that is expected to establish one of Asia's largest automated garment manufacturing hubs. The expansion underscores the company's long-term growth strategy to enhance production capacity, improve operational efficiency, and strengthen India's position as a global textile and apparel manufacturing destination.
The project involves expanding the company's existing 8 lakh sq. ft. manufacturing facility by an additional 12 lakh sq. ft., creating a fully integrated 20 lakh sq. ft. manufacturing campus. Once operational, the highly automated facility will significantly increase production efficiency while enabling the company to meet growing domestic and international demand for apparel products. The foundation stone for the project was laid on July 11 in the presence of government officials, industry representatives, and the company's leadership team.
The expansion will add an annual production capacity of 20 crore garments to the existing facility's capacity of 12 crore pieces. This will increase Lux Industries' overall manufacturing capacity across India from nearly 20 crore garments to approximately 36 crore pieces annually. The company expects the enhanced production capabilities to strengthen its market position while supporting future business growth and export opportunities.
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Beyond manufacturing, the project is expected to generate significant employment opportunities, creating around 3,000 direct and 6,000 indirect jobs. According to the company, the investment will contribute to industrial development in West Bengal, strengthen the state's textile ecosystem, and support regional economic growth. The expansion will be funded through a combination of internal accruals and external borrowings, with the company projecting a payback period of approximately five years.
Lux Industries stated that the investment comes amid strong business momentum, with the company reporting a compound annual growth rate of more than 25% over the last eight quarters while maintaining EBITDA margins of 10–12%. In recent years, it has also invested nearly ₹300 crore in brand development and market expansion. The new Dankuni facility is expected to consolidate manufacturing operations, reduce production bottlenecks, and enhance operational efficiency through advanced automation, reinforcing the company's long-term commitment to innovation, sustainability, and large-scale manufacturing.