Kolkata: Lux Industries, one of India's leading innerwear and apparel manufacturers, is set to be trifurcated among three branches of the founding Todi family in an amicable settlement that will also resolve cross-holdings between the groups.
The Rs 3,000 crore company will be split into three verticals, each led by a separate family faction, with two new listed entities emerging from the demerger.
"During the demerger, the cross-holding issue will be resolved and all three companies will run independently," said Saket Todi, son of promoter Ashok Todi.
Family Settlement Details
The Todi family comprises three brothers — the late Kishan Todi, Ashok Todi and Pradip Todi. Under the family settlement agreement, Vertical A will be led by Ashok Kumar Todi and his son Saket; Vertical B by Pradip Kumar Todi and his son Udit; and Vertical C by Navin Kumar Todi and Rahul Todi, sons of the late Kishan Todi. All three entities will retain the Lux mother brand.
Vertical B will continue as Lux Industries Limited, while Verticals A and C will be demerged into two new companies that will be separately listed. To facilitate the process, the board has approved the incorporation of two wholly-owned subsidiaries in Bengal.
Brands and Manufacturing Assets
Each vertical has been assigned distinct brands and manufacturing assets:
- Vertical A: Lux Cozi, ONN and Lux Cottswool, with facilities in Bengal's Dankuni and Sankrail, Tajpur Road in Punjab and Tiruppur in Tamil Nadu.
- Vertical B: Lux Venus, Lyra and Lux Inferno, with plants in Bengal, Punjab, Uttar Pradesh and Tamil Nadu.
- Vertical C: Lux Classic, GenX and Lux Amore, with assets in Tiruppur.
Management Comments
Commenting on the settlement, chairman Ashok Kumar Todi said, "Lux Industries remains committed to transparency, compliance, and safeguarding the interests of all stakeholders. In the proposed reorganisation both Lux and the resulting new entities will continue to benefit in the long run to unlock shareholder value."
Pradip Kumar Todi, MD, said, "Our priority remains to ensure that the reorganisation serves the long-term interest of the company and its stakeholders, while preserving the strength of our brands and operations."
