Lux Industries slips after promoter pact, outlines three-way demerger
Members of the Todi family promoter group entered into a Family Settlement Agreement on 22 April 2026 to realign ownership, management and business interests. The company clarified it is not a party to the agreement, though the changes will shape its future structure.
The agreement involves three promoter branches - Ashok Kumar Todi (AKT), Pradip Kumar Todi (PKT) and Navin Kumar Todi (KKT) families.
The board has granted in-principle approval for a demerger of the business into three verticals. Under the proposed structure, Vertical A and Vertical C will be spun off into two separate listed entities, while Vertical B will remain with Lux Industries.
Vertical A, aligned with the AKT family, will house brands such as Lux Cozi, Lux Parker, ONN and Lux Cottswool, with manufacturing units in Dankuni (West Bengal), Sankrail (West Bengal), Tajpur Road (Punjab) and Tiruppur (Tamil Nadu).
Vertical B, which will continue within the company under the PKT family, includes brands like Lux Venus, Lux Nitro, Lux Inferno and Lyra, supported by facilities in West Bengal, Ludhiana (Punjab), Tronica City (Uttar Pradesh) and Avinashi (Tamil Nadu).
Vertical C, aligned with the KKT family, will be demerged into another listed entity and will include brands such as Lux Classic, GenX, Lux Karishma, Lux Amore and Lux Champion, with manufacturing concentrated in Tiruppur (Tamil Nadu).
To facilitate the restructuring, the board has also approved the incorporation of two wholly owned subsidiaries in West Bengal, each with Rs 5 lakh paid-up capital (2.5 lakh shares of Rs 2 face value).
The board also approved revised brand licensing deals with Biswanath Hosiery Mills (for Lux brands) and others for non-Lux marks like ONN and Lyra, ensuring business continuity.
The proposed demerger is subject to approvals from shareholders, regulators and other stakeholders.
Lux Industries is engaged in the manufacturing and sale of knitted apparel, including hosiery products.
On a consolidated basis, Lux Industries' net profit declined 59.73% to Rs 12.91 crore while net sales rose 21.96% to Rs 669.98 crore in Q3 December 2025 over Q3 December 2024.
