Lux Industries Management Meet Update - Southern Market To Act As A Revenue Driver: Dolat Capital
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Dolat Capital Report
Domestic sales contribution: North (up 30%), West (22%), Central (15%), East (30%) and South (3%). Given the low contribution, Lux Industries Ltd. is aggressively looking to market itself in South India in next two to three years. In South, it plans to launch mens’ innerwear first and adopt more of local strategy to penetrate that market.
Lux’s facility at Tirupur wold be an added advantage for supplying to South market. We believe that the southern market would act as a revenue driver in the ensuing quarters due to low penetration.
Exports is growing at 18-19%, contributing 8% of total revenue. Africa business is exhibiting strong traction (60-70% international contribution).
The management expects export revenue of Rs 2 billion in FY22E. It is targeting export to 60 countries by 2025 from 46 currently.
Over next three to four years, exports are likely to reach Rs 4-5 billion. The company is trying to convert dealers in China market to Lux customers.
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