Founded in 1957 by Giridhari Lal Todi as Biswanath Hosiery Mills, Lux Industries Ltd. came into being in 1995 and a new era began when his sons took over the rein of the company.
Lux Industries said its board was informed that the promoter and promoter group from Todi Family entered into a family settlement agreement and the company was not part of it.
The settlement agreement involves three promoters’ families- Ashok Kumar Todi (AKT), Pradip Kumar Todi (PKT) and Navin Kumar Todi (KKT) families.
The family settlement agreement has been entered amicably for, inter alia, division, distribution and apportionment of the divisible businesses and assets of the family as well as the usage of intellectual properties for long-term peace, harmony and understanding, as per disclosure made by promoters to stock exchanges.
The company’s board has granted in-principle approval for de-merger of business into three verticals. Under the proposed rejig, 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 such as Lux Venus, Lux Nitro, Lux Inferno and Lyra, supported by facilities in Hosiery Park (West Bengal), Ludhiana (Punjab), Tronica City (Ghaziabad) and Avinashi, Tiruppur (Tamil Nadu).
Vertical C, which will come under the control of the KKT family, will be de-merged 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).
For the purposes of facilitation of de-merger, the company’s board also gave nod for the immediate incorporation of two wholly-owned subsidiaries in West Bengal with the name of ‘Lux’.
Currently, the promoter Group owns 74.19 per cent in Lux Industries.
Further, to ensure continuity of all brand-related usage as well as to formalise and realign brand-related matters, the family branches propose to enter into revised brand licensing agreement with Biswanath Hosiery Mills Limited (“BHML”) for realignment of various ‘Lux’ related brands and enter into licensing arrangements for various other assigned non-lux brands of BHML.
For deliberating about the proposed de-merger, the company’s board has approved constitution of a committee comprising Ashok Kumar Todi, Chairman and whole-time director, Pradip Kumar Todi, Managing Director, Ratnabali Kakkar, Independent Director, and Rusha Mitra, Independent Director.
