Lux Industries Approves In-Principle Demerger of Vertical A and C Businesses; Two New Entities to Be Listed

Pune : Lux Industries Limited has announced a major restructuring initiative, with its Board granting in-principle approval for the demerger of its Vertical A and Vertical C businesses into two separate wholly-owned subsidiaries. The decision was taken at the Board meeting held on April 23, 2026, following a Family Settlement Agreement (FSA) among members of the promoter group.

The company had earlier approved, on November 22, 2023, the trifurcation of its business into three verticals—A, B, and C. Under the proposed scheme, Vertical A and Vertical C will be carved out into two independent entities that will subsequently be listed, while Vertical B will continue to operate under Lux Industries Limited.

According to the company, the restructuring is aimed at streamlining operations, enabling sharper strategic focus across each vertical, and unlocking long-term value for shareholders. The move is aligned with the Family Settlement Agreement, which seeks to bring clarity in ownership, management, and distribution of business assets among promoter family members, ensuring long-term harmony.

As part of the proposed structure, Vertical A will include major brands such as Lux Cozi, Lux Parker, ONN, and Lux Cottswool, supported by manufacturing facilities in West Bengal, Punjab, and Tamil Nadu. Vertical B will comprise brands including Lux Venus, Lux Nitro, Lyra, and Lux Inferno, with units across West Bengal, Ludhiana, Ghaziabad, and Tamil Nadu. Vertical C will house brands like Lux Classic, GenX, Lux Karishma, Lux Amore, and Lux Champion, primarily operating out of Tiruppur in Tamil Nadu.

Leadership responsibilities have also been defined, with Ashok Kumar Todi and Saket Todi leading Vertical A, Pradip Kumar Todi and Udit Todi heading Vertical B, and Navin Kumar Todi and Rahul Todi overseeing Vertical C.

To facilitate the restructuring, the Board has approved the incorporation of two wholly-owned subsidiaries in West Bengal under the ‘Lux’ name. These entities will serve as vehicles for executing the demerger and ensuring a smooth transition.

In a related development, the company has approved a revised brand licensing agreement with Biswanath Hosiery Mills Limited (BHML). The new agreement secures the company’s rights over its key brands and ensures continuity of usage, while the earlier agreement has been terminated with immediate effect. The company clarified that this change will have no adverse impact on its operations.

Commenting on the development, Chairman Ashok Kumar Todi said the restructuring reflects the company’s commitment to transparency, compliance, and protecting stakeholder interests, and is expected to unlock long-term shareholder value. Managing Director Pradip Kumar Todi added that the reorganization will support sustainable growth and aligns with emerging trends such as comfort-first innovation, lifestyle-driven products, technological advancement, size inclusivity, and sustainability, particularly as the premium segment of the market continues to expand.

The proposed demerger is subject to necessary regulatory and stakeholder approvals, and the company will make further disclosures in due course.