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Lux Group launches ONN Active; forays into Rs 2400 cr active wear market

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Lux Group launches ONN Active; forays into Rs 2400 cr active wear market

Lux Group, with a mission to be recognised as the best Indian hosiery company globally and to drive the industry towards sustainable growth and development, is marching along the growth path with renewed passion and vigour.

Lux Industries entered the premium men’s segment with the launch of ONN inner wear five years ago. With the retail reach of 13,000 outlets across 3,500 cities and towns in India, ONN brand has emerged as one of the fastest growing brand in the segment. Focusing on an evolving brand outlook, Lux launched ONN Active in Mumbai yesterday. It is a strategic move to foray into the Rs 2400 crore active wear market offering a comfortable, casual and alternate line of clothing. In the last decade, this category has witnessed aggressive activity in terms of new brand launches and category evolution. 

Echoing the brand ethos, Saket Todi, Senior Vice President, Lux Industries, said, “Entering into a customised segment requires a great deal of research and the right strategy targeting the existing audience as well as creating a new one. Our R&D team has focused on reaching out to a greater mass understating the consumer requirement. Continuing the brand promise of comfort, style, quality and affordability the entire Active range promises to satisfy the consumers on these three parameters. With this launch we are mostly looking at a wider reach not only for revenue gains but also to establish the brand as a front runner.”

The brands are at the forefront of capitalising on the underlying premiumisation opportunity in the innerwear category. Continued focus on premiumisation, portfolio expansion in existing product segments (men and women innerwear), venture into new segments and penetration into upcoming growth centres are key factors considered to open up the potential for consistent and sustainable revenue growth.

Speaking at the conference, Rahul Todi, Senior Vice President, Lux Industries, said, “Combining our deep homegrown instincts with generations of rich business insights, we have formulated some well-structured business principles that have enabled our enterprise to rise above the probable and go beyond. In a characteristically traditional industry, we disrupt the status-quo by getting better and better – in effect, continuing to identify small cost reduction ideas that yield big results.”

Elaborating on the future foray of the company, Udit Todi, Senior Vice President, Lux Industries, said, “At Lux, our business model weaves together the strength to remain relevant in a dynamic environment, the sagacity to capture future opportunities and the diversity of brands and human resources to pursue excellence at all times. Growing in a highly volatile market, we strive to create an enduring institution that represents an attractive investment opportunity for both our existing as well as prospective shareholders.”

The company has focused plans on diversifying into women segment with the launch of lingerie and thus aiming to standardise the otherwise cluttered women’s innerwear market. Lyra, manufactured by Ebell Fashion, a Lux group company, today enjoys  high level of consumer awareness and consumer loyalty. Lyra has successfully established itself as one of the largest legging brands in the women wear segment. The legging business is growing by 50% a year and currently commands a market share of 38% in the mid to premium segment.

Aligning the brand values with that of the younger audience, Lux has recently roped in Bollywood star Varun Dhawan as a brand ambassador of Lux Cozi. Previously ‘Suno toh apne dil ki’ campaign saw Bollywood actor Sushant Singh Rajput as the face of the campaign. It has also launched Lux Cozi GLO, a range of premium, stylish and ultra-soft innerwear, mostly targeting the style conscious youth. Aggressive and focused marketing initiatives helped establish the Lux Cozi GLO collection as one of the fastestgrowing economy to mid brands in the men’s innerwear space.These exercises have been strategically made to reach out to a broader mass by repositioning the brand within the youth fraternity.

Last quarter the company has commissioned a high tech integrated facility in Dankuni, West Bengal. The current optimal cutting capacity has reached 1.4 million pieces per day. There has been a significant margin growth owing to the enhanced operational efficiency and cost containment.

With its continued rural focus, Lux Industries is planning a substantial and strategic intervention in the urban areas in the coming quarters. The positioning of the brands and the marketing initiatives are skewed towards strengthening this changing market dynamics.


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