Lux Industries to merge JM Hoisery, Ebell Fashions

By

Maverick Martins

Published
Jul 2, 2018

Knitwear major Lux Industries will be merging two of its units JM Hoisery and Ebell Fashions as it looks to strengthen its position in the country’s premium hosiery segment.
 

The merger is expected to be completed before the end of the current financial year as it is a share swap deal and post the merger starting next fiscal the company is hoping for 15 percent jump in its topline.
 
“The merger will take place through a share-swap deal. Under this arrangement, Lux Industries will issue 48, 00,000 shares to the promoters of JM Hosiery and Ebell Fashioes, that is, Todi family members. There is no cash payment involved to any side. It is a share swap deal. We are going to apply for the necessary clearances,” Udit Todi, Senior Vice-President, Lux Industries was quoted as saying by Businessline.

Lux Industries had posted revenue of Rs 1140 crore (approx $166.5 million) with profit of Rs 79 crore for the fiscal 2017-18 while the combined revenue of JM Hosiery and Ebell Fashions for the last fiscal was Rs 491 crore with profit of Rs 38 crore.
 
“We are expecting the topline to grow by 15 per cent this year. With consolidation of premium brands like Genx and Lyra with Lux, the top-line and bottom-line too, should get a boost through operational synergies and a single brand strategy,” he added.
 
Lux industries offers innerwear & sleepwear products for men, women & kids, it is retailed in more than 450,000 stores across India and also has a strong online presence with brands like Genx, Lyra and Lux.