lux industries ltd share price Management discussions

Global economy

Overview: The global economic growth was estimated at a slower 3.4% in 2022, compared to 6% in 2021 (which was on a smaller base of 2020 on account of the pandemic effect). The relatively slow global growth of 2022 was marked by the Russian invasion of Ukraine, unprecedented inflation, pandemic-induced slowdown in China, higher interest rates, global liquidity squeeze and quantitative tightening by the US Federal Reserve.

The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs. Global inflation was 8.7% in 2022, among the highest in decades. US consumer prices increased about 6.5% in 2022, the highest in four decades. The Federal Reserve raised its benchmark interest rate to its highest in 15 years. As 2022 concluded, the world harbored concerns that the following year might be slower

Global FDI inflows equity, reinvested earnings and other capital declined by 24% to nearly US$1.28 trillion in 2022. Global trade expanded by 2.7% in 2022 (expected to slow to 1.7% in 2023). (Source: OECD, WTO data)

The S&P GSCI TR (Global benchmark for commodity performance) fell from a peak of 4,319.55 in June 2022 to 3495.76 in December 2022. There was a decline in crude oil, natural gas, coal, lithium, lumber, cobalt, nickel and urea realisations. Brent crude oil dropped from a peak of around USD 120 per barrel in June 2022 to USD 80 per barrel at the end of the calendar year following the enhanced availability of low-cost Russian oil.

Regional growth (%)

2022 2021

World output

3.4 6.3

Advanced economies

2.7 5.4

Emerging and developing economies

4.0 6.9

Performance of major economies



Reported GDP growth of 2.1% compared to 5.9% in 2021


GDP growth was 3% in 2022 compared to 8.1% in 2021



GDP grew by 4.1% in 2022 compared to 7.6% in 2021


GDP grew 1.7% in 2022 compared to 1.6% in 2021


GDP grew 1.8% compared to 2.6% in 2021

[Source: PWC report, EY report, IMF data, OECD data]

Outlook: The global economy is expected to grow 2.8% in 2023, influenced by the ongoing Russia-Ukraine conflict. Concurrently, global inflation is projected to fall marginally to 6.6%. Despite these challenges, there are positive elements within the global economic landscape. The largest economies like China, the US, the European Union, India, Japan, the UK and South Korea are not in a recession. Approximately 70% of the global economy demonstrates resilience, with no major financial distress observed in large emerging economies. The energy shock in Europe did not result in a recession and significant developments, including Chinas progressive departure from its strict zero-covid policy and the resolution of the European energy crisis, fostered optimism for an improved global trade performance. Despite high inflation, the US economy demonstrated robust consumer demand in 2022. Driven by these positive factors, global inflation is likely to be still relatively high at 4.3% in 2024. Interestingly, even as the global economy is projected to grow less than 3% for the next five years, India and China are projected to account for half the global growth (Source: IMF).

Indian economy

Overview: Even as the global conflict remained

geographically distant from India, ripples comprised increased oil import bills, inflation, cautious government and a sluggish equity market. Indias economic growth was 7.2% in FY 2022-23. India emerged as the second fastestgrowing G20 economy in FY 2022-23. India overtook UK to become the fifth-largest global economy. India surpassed China to become the worlds most populous nation (Source: IMF, World Bank)

Growth of the Indian economy

FY 20 FY 21 FY 22 FY23

Real GDP growth(%)

3.7 -6.6% 9.1 7.2

Growth of the Indian economy quarter by quarter, FY 2022-23

Q1 Q2 Q3 Q4
FY23 FY23 FY23 FY23

Real GDP growth(%)

3.7 -6.6% 9.1 7.2

As Indias domestic demand remained steady amidst a global slowdown, import growth in FY23 was estimated at 16.5% to $714 billion as against $613 billion in FY22. Indias merchandise exports were up 6% to $447 billion. Indias total exports (merchandise and services) grew 14 percent to

a record of $775 billion and is expected to touch $900 billion in FY2023-24. Indias current account deficit, a crucial indicator of the countrys balance of payments position, was US$67 billion or 2% of GDP. Indias fiscal deficit was in nominal terms at ~ H17.55 lakh crore, which is 6.4% of the countrys GDP for the year ending March 31, 2023.

Indias headline foreign direct investment (FDI) numbers rose to a record $84.8 billion in FY2021-22, However, during the fiscal year 2022-23, the country experienced a 16% decrease in foreign direct investment (FDI) inflows, amounting to $71 billion on a gross basis. This decline can be attributed to unfavorable global economic conditions and stands as the first contraction in FDI in the past ten years.

Indias foreign exchange reserves, which had witnessed three consecutive years of growth, experienced a decline of approximately $70 billion in FY2022-23, primarily influenced by rising inflation and interest rates. Starting from $606.47 billion on April 1, 2022, reserves decreased to $578.44 billion by March 31, 2023. The Indian currency also weakened during this period, with the exchange rate weakening from H75.91 to a US dollar to H82.34 by March 31, 2023, driven by a stronger dollar and an increasing current account deficit. Despite these factors, India continued to attract investable capital.

The countrys retail inflation, measured by the consumer price index (CPI), eased to 5.66% in March 2023. Inflation data on the Wholesale Price Index, WPI (calculates the overall price of goods before retail) eased to 1.3% during the period. In 2022, CPI hit its highest of 7.79% in April; WPI reached its highest of 15.88% in May 2022. By the close of the year under review, inflation had begun trending down and in April 2023 declined below 5%, its lowest in months.

Indias total industrial output for FY23, as measured by the Index of Industrial Production or IIP, grew 5.1% year-onyear as against a growth of 11.4 percent in FY2021-22.

India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in FY23. As of March 2023, Indias unemployment rate was 7.8 percent.

In FY2022-23, total receipts (other than borrowings) were estimated at 6.5% higher than the Budget estimates. TaxGDP ratio was estimated to have improved by 11.1 percent Y-o-Y in RE 2022-23. The government is also estimated to have addressed 77% of its disinvestment target in FY23 (H50,000 crore against a target of H65,000 crore).

Gross tax collection of goods and services (GST) for FY23 was H18.10 lakh crore, with an average of H1.51 lakh a month and up 22% from FY22, Indias monthly GST collections hit the second highest ever in March 2023 to H1.6 lakh crore. For FY2022-23, the government collected

H16.61 lakh crore in direct taxes, according to data from the Finance Ministry. This amount was 17.6 percent more than what was collected in the previous fiscal.

Per capita income almost doubled in nine years to H172,000 during the year under review, a rise of 15.8 percent over the previous year. Indias GDP per capita was 2,320 USD (March 2023), close to the magic figure of $2500 when consumption spikes across countries. Despite headline inflation, private consumption in India witnessed continued momentum and was estimated to have grown 7.3 percent in 2022-23.

Outlook: There are green shoots of economic revival, marked by an increase in rural growth during the last quarter and an appreciable decline in consumer price index inflation to less than 5 percent in April 2023. India is expected to grow around 6-6.5 percent (as per various sources) in FY2024, catalysed in no small measure by the governments 35% capital expenditure. The growth could also be driven by broad-based credit expansion, better capacity utilisation and improving trade deficit. Headline and core inflation could trend down. Private sector investments could revive. What provides optimism is that even as the global structural shifts are creating a wider berth for Indias exports, the country is making its largest infrastructure investment. This unprecedented investment is expected to translate into a robust building block that, going ahead, moderates logistics costs, facilitates a quicker transfer of products and empowers the country to become increasingly competitive. This can benefit Indias exports in general, benefiting several sectors. The construction of national highways in 2022-23 was 10,993 kilometers; the Ministry of Road Transport and Highways awarded highway contracts of 12,375 km in the last financial year

The global landscape favours India: Europe is moving towards a probable recession, the US economy is slowing, Chinas GDP growth forecast of 4.4% is less than Indias GDP growth of 7.2% and America and Europe is experiencing its highest inflation in 40 years.

Indias production-linked incentive appears to catalyse the downstream sectors. Inflation is steady. India is at the cusp of making significant investments in various sectors and emerge as a suitable industrial supplement to China. India is poised to outpace Germany and Japan and emerge as the third-largest economy in the next 3-4 years. The outlook for private business investment remains positive despite an increase in interest rates. India is less exposed to Chinese economic weakness, with much less direct trade with China than many Asian peers.

Broad-based credit growth, improving capacity utilisation, governments thrust on capital spending and infrastructure should bolster investment activity. According to our

surveys, manufacturing, services and infrastructure sector firms are optimistic about the business outlook. The downside risks are protracted geopolitical tensions, tightening global financial conditions and slowing external demand. (Source: IMF data, RBI data, Union budget 202324 data, CRISIL report, Ministry of Trade & Commerce, NSO data)

Union Budget FY 2023-24 provisions

The Budget 2023-24 sought to lay the foundation for the future of the Indian economy by raising capital investment outlay by 33% to H10 lakh crores, equivalent to 3.3% of GDP and almost three times the 2019-20 outlay, through various projects like PM Gati-shakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action, as well as Financing of Investments. An outlay of H5.94 lakh crore was made to the Ministry of Defence (13.18% of the total Budget outlay). An announcement of nearly H20,000 crores was made for the PM Gati-Shakti National Master Plan to catalyse the infrastructure sector. An outlay of H1.97 lakh crore was announced for Production Linked Incentive schemes across 13 sectors. The Indian government intends to accelerate road construction in FY24 by 16-21% to 12,000-12,500 km. The overall road construction project pipeline remains robust at 55,000 km across various execution stages. These realities indicate that a structural shift is underway that could strengthen Indias positioning as a long-term provider of manufactured products and its emergence as a credible global supplier of goods and services

Global textile and apparel market

Textile: The global textile market reached a substantial value of USD 1,695.13 billion in 2022, and the market is projected to grow at a CAGR of 7.6% in revenues from 2023 to 2030. This estimated growth could be primarily attributed to rising apparel demand from the ever demanding fashion sector, complemented by a rapid rise in e-commerce platforms and fast-fashion companies.

On the product side, the natural fibers product segment dominated the market with a significant revenue share of 44.1%. Their extensive use in the fashion and apparel industry drives this growth. The polyester product segment is also poised for significant growth at 7.4% from 2023 to 2030, due to its various advantageous properties. Nylon holds the third-largest market share and is expected to witness the highest CAGR of 8.1% due to its resilience and moisture-absorbing properties, benefiting apparel and home-furnishing applications.

Apparel: The global apparel market reached USD 1,334.90 billion in 2023 and is expected to grow to USD 1,673.90 billion by 2028 at a CAGR of 4.63% during the forecast

period, aided by innovative designs and preferable fashion choices. The increased exposure to the internet and e-commerce among consumers has enhanced fashion consciousness and the availability of high-end brands and limited-edition products.

Asia-Pacific dominates the global apparel market with a 53.41% market share and anticipates a high CAGR of 9.7% from 2023 to 2030. Factors like organized retail, favorable demographics, rising income levels, and government support drive textile demand in countries like India, Bangladesh, Pakistan, and Vietnam. Chinas Xinjiang region cotton ban by the US offers opportunities for these countries to boost exports and gain market share.

Indian textile and apparel market

The textile sector is one of the major sectors of the Indian economy and the second largest employer after agriculture. The Indian textiles and clothing sector is estimated at $172.3 billion in FY22-23. With domestic consumption accounting for 70% and exports for the remaining 30%. Retail sales of clothes account for $80 billion of the total. The domestic market is projected to increase at a CAGR of 14.59% to reach $387.3 billion by 2028. India is the largest cotton producer (23%) in the world and has the highest area under cotton cultivation (39% of the worlds area). Also, India is the second largest producer of both polyester and viscose (man-made fibre) globally. Polyester consumption in India is expected to double and reach 8.5 million tons by 2030 from the current estimated consumption of 4.4 million tons, growing at a CAGR of 8%. The growth in India is mainly driven by the growing domestic and exports market.

Growth drivers

Abundance of raw materials: Raw material for the textile industry is cotton, jute, wool, raw silk and synthetic goods. India is the worlds largest producer of cotton, with a production of over 344 lakh bales in 2022-2023 and enjoys a rich abundance of natural resources used as raw materials like silk, wool and jute in the textile industry. In addition to natural fibers, India also produces synthetic fibers such as polyester, nylon, and acrylic, making it one of the worlds leading textile producers and exporters of raw materials. Our country also produces over 5,500 varieties of yarn and over 3,000 varieties of fabric, making it one of the most diverse textile industries in the world.

Value chain: Indias textile industry is vertically integrated, with the entire value chain present in the country. As per the Confederation of Indian Industry, amongst the textile industry value chain, comprising spinning, weaving, processing and garmenting, the spinning and apparel sectors attained considerable strength in recent years, but the weaving and processing sectors are yet to attain competitive efficiency. The Government of India has had several ongoing initiatives and programmes including PM MITRA and SAMARTH for upskilling/re-skilling requirements of the textile business, covering the value chain. (Source: CII,

Affordable prices: The Indian textile sector benefits from affordable production prices due to a strong backward integration system, skilled labor at lower costs, government incentives and subsidies, and low energy costs. India has one of the lowest electricity rates in the world, and the government promotes the use of renewable energy sources.

Qualified personnel: India has several reputed textile institutes and universities, such as the National Institute of Fashion Technology (NIFT) and the Indian Institutes of Technology (IITs), that offer specialized courses in textile engineering, fashion technology, and related fields. These institutes produce a large number of qualified professionals each year, who contribute to the growth and development of the industry.

Expanding domestic market: According to a report by the

Ministry of Textiles, the domestic market for textiles and clothing is expected to reach $350 billion by 2025. The report also states that the demand for technical textiles, such as geotextiles, agro-textiles, medical textiles, and protective textiles, is also on the rise in the country.

Favourable macro environment: The rising disposable incomes and increasing per capita income of consumers in India, along with their preference for branded and high-quality textile products, have fuelled the growth of the textile market in the country. Indias middle-class is expected to grow from 50 million in 2007 to 583 million by 2025. Additionally, the Indian luxury textile market has grown at a CAGR of 25% from 2018 to 2023 and has reached a value of approximately $15 billion by 2023. These trends provide significant opportunities for the Indian textile industry to diversify and grow. (Source: Mckinsey, Technopak)

Brand preference: Brand preference in the Indian textile industry has been increasing due to the exposure to global fashion trends. Consumers are becoming more conscious of the brands they wear and are willing to pay a premium for unique quality products. With the rise of social media and fashion influencers, there has been a surge in fashion consciousness. Consumers are more aware of the latest trends, styles, and brands, leading to increased demand.

E-commerce and the organized retail landscape: The

growth of e-commerce and the organized retail landscape has had a significant impact on the Indian textile industry. The Indian e-commerce market for fashion and lifestyle products is expected to grow at a CAGR of 20-25% to reach $30 billion by 2025. These trends provide significant opportunities for the textile industry to reach more consumers and expand market share.

Union Budget 2023-24 allocations

The Ministry of Textiles has received an increased allocation of H4,389.34 crores, a notable increase from the previous fiscals allocation of H3,579.61 crores.

In support of the textiles and apparel sector, the Budget proposes an allocation of H900 crores for the Amended Technology Upgradation Fund Scheme (ATUFS) for the

fiscal year 2023-2024, compared to H650 crores in 20222023.

To boost Extra Long Staple (ELS) Cotton Production and reduce reliance on imports, the government plans to adopt a cluster-based and value chain approach through public private partnerships. Enhanced coordination between farmers, the State, and the industry for input supply, extension services, and market links are a part of this strategy.

The textile industry is expected to benefit from a revision of credit guarantee schemes with a corpus of H9,000 crore, aimed at providing collateral-free guaranteed credit worth H2 lakh crore. Moreover, increased funding has been allocated to the Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) programs.

An interest equalisation scheme (IES) received an allocation of H2,376 crore in 2022-23, which will be further increased to H2,932 crore in 2023-24, providing an additional boost to textile exports.

Indian hosiery market overview

The Indian hosiery market holds a prominent position globally, particularly with innerwear constituting a significant segment. Its growth is driven by heightened awareness of personal hygiene, a rising labor force participation rate, and shifting consumer preferences towards fashionable intimate wear, sportswear, and daily innerwear. Social and cultural initiatives promoting inclusivity, diversity, optimism, and sustainability have further fueled the demand for innerwear. Additionally, the industry has benefited from the expansion of organized retail channels, encompassing specialty stores, hypermarkets/supermarkets, and online shopping platforms, which have positively influenced its trajectory nationwide. Embracing the spirit of Make in India and Self-Reliant India, the hosiery industry is poised to capitalize on its strengths and enhance exports.

Company overview

Lux Industries Limited was established in 1995 and has since grown to become one of the industrys major players, with a market share of 15% of the organised sector. Lux is Indias biggest domestic hosiery company. To meet the expanding needs of clients, the company offers more than 100 products across 11 powerful brands and ~ 5000 SKUs. The company has eight manufacturing facilities which are strategically located in West Bengal, Punjab, Tamil Nadu and Uttar Pradesh to address growing markets with a cumulative capacity of 34 crores garment pieces a year. Products from the company are offered in 2 lakh+ retail

points across India. Lux has a global presence in 46+ countries.


Lux Industries Ltd. foresees sustained growth, driven by its multi brands and multi products segment, as exemplified by its reported turnover of H2,368 crores for the FY 20222023. This strategic vision is substantiated by key focal points including strengthening production capacities in West Bengal and Ludhiana, adapting product offerings to evolving market trends and consumer preferences, amplifying omni-channel capabilities, fostering sustainable growth for enduring stakeholder value, and diversifying the product portfolio to encompass womens wear and kids categories.

Segment-wise or product-wise performance

The Company is engaged in the business of manufacturing knitted garments and there is no separate reportable segment.

Our strengths

Experienced management: Lux, bolstered by promoters with over six decades of expertise, has reinforced its stance as a prominent innerwear brand. Rooted in innovation and strategic amalgamations, the companys commitment has facilitated expansion into new domains. This growth aligns with the promoter vision of delivering high-quality, affordable products while adhering to eco-friendly processes that contribute to socio-economic welfare.

Robust brand equity: The company allocates approximately eight percent of its turnover towards brand investment. As a result, all products are sold under the overarching Lux brand.

Extensive product diversity: Lux comprises an impressive array of more than 100 products across 11 powerful brands and ~ 5000 SKUs. under its flagship brand, catering to the mass segment through Lux Venus, the medium segment through Lux Cozi, and the premium segment through Lux ONN and Lyra

Strong distribution network: Luxs success is underpinned by its wide geographic presence and long-standing relationships with a substantial number of 1170+ dealers, who comprise an impressively low churn. The companys commitment to expansion is evident in its efforts to establish more exclusive brand stores, providing additional touchpoints for customers. Lux is strengthening its online presence by partnering with leading e-commerce platforms. This strategic approach ensures that Lux products are easily accessible to customers even in remote locations, contributing to the companys continued growth and market leadership.

Diversified presence: The company has an extensive

providing an informed view of market conditions.

presence in north, east and west India, generating 80

Approximately 7-8 percent of the total turnover was

percent of its turnover from these zones. The company invested in information technology to widen distribution,

exported, mainly to African and South Asian countries.

Risk management

Economic risk: The textile industry is sensitive to changes in the broader economy, and economic downturns can lead to decreased demand for textiles and other consumer goods.

Mitigation: The company has diversified its customer base and product offerings and invested in cost-saving measures such as automation and efficiency improvements. The company continues to maintain strong relationships with suppliers and customers.

Supply chain risk: The textile industry is dependent on complex global supply chains, and disruptions in any part of the supply chain can have a ripple effect on the industry.

Mitigation: The company has a diversified distribution network with minimal dealer turnover, extensive nationwide presence, and strategic investments in information technology for enhanced distribution efficiency and market insights.

Regulatory risk: The textile sector is prone to regulatory risks to reduce GHG emissions, material efficiency, and regulatory actions to establish a green supply chain.

Mitigation: The company has taken steps to reduce its environmental footprint, including a rooftop solar power plant, water-saving processes, and renewable energy sources. The companys products are made of natural fiber and recyclable packaging, and has an ISO 9000-certified quality management system.

Raw material risk: Volatility in raw material prices may be caused by a variety of causes, including shifts in supply and demand, climatic conditions, and geopolitical events, which may pose a risk to the companys operations.

Mitigation: The company has established long-term contracts with suppliers and invested in a backward integrated facility in Dankuni, West Bengal. This has enabled it to counter fluctuations in raw material prices. Additionally, Yarn is the main raw material which constitute about 50% of the product cost. Its prices are monitored by the management and procurement is planned considering the volatility in yarn prices

Liquidity risk: Liquidity risk is a concern for textile companies due to their reliance on consumer demand, significant capital investments, and cyclical nature. The industrys supply chain is vulnerable to disruptions that can impact cash flow and impact production.

Mitigation: Lux has a strong liquidity position, with estimated net cash accruals of H157.25Cr in FY2023 and a current ratio of 2.87 times as of March 31, 2023. The company has unencumbered FDs of around H0.31 Cr as of March 31, 2023, and a fund-based limit utilization of 52.80% as of March 2023. The companys liquidity position remains strong with enhanced cash accruals and lower reliance on debt.

Capital expenditure risk: The company has financial exposure and uncertainties associated with making significant capital expenditures to acquire, upgrade, or expand assets in the business.

Mitigation: Lux leverages its extensive market understanding and impressive track record to successfully capex projects. The company conducts rigorous financial analysis and feasibility studies for informed decision-making. By diversifying investments across multiple projects, maintaining ample liquidity, and developing contingency plans, Lux mitigates capex risks effectively.

Review of our financial performance

Particulars (H in Cr)

Year ended March 31, 2023 Year ended March 31, 2022 Y-o-Y


Revenue from Operations*

2,398 2,313 4%

Profit before Interest, Depreciation & Tax

233 490 -52%

Less: Finance Cost

24 16 53%

Profit before Depreciation and Tax

209 474 -56%

Less: Depreciation

20 18 8%

Profit before Tax

189 456 -59%

Less: Tax

51 118 -56%

Profit After Tax

137 338 -59%

Key financial ratios and numbers


2022-23 2021-22 % change

Debt-equity ratio

0.17 0.25 -32

RoNW (%)

9.54 25.94 -63.22

Debtors Turnover (days)

122 102 19.61

Inventory turnover (days)

104 132 -21.21

Interest coverage ratio (x)

8.71 29.48 -70.44

Current Ratio

2.87 2.59 10.64

Operating profit margin (%)

9.70 21.20 -11.5

PAT margin (%)

5.73 14.62 -8.89

FY23 has been a challenging year for the innerwear industry, the company during the period reported revenue growth of 3.6%. The EBITDA margins in FY23 stood at 9.7% compared to 21.2% over the same period in the previous year.

The EBITDA margins were negatively affected by the combined impact of volatile raw material prices and highcost inventory stocking with the company and distribution channel. However, with raw material prices stabilising, the Companys objective will be to moderate the quantum of products lying in the distributor network, replenish the sold material with speed and generate higher inventory turns to enhance our margins profile.

As on March 31, 2023 the companys working capital cycle stood at 176 days as against 188 days in FY22. The company is continuously monitoring and managing all levers to optimise its working capital cycle, with intentions to reduce working capital days in the coming quarters. As of March 31, 2023, the companys gross cash and cash equivalents stood at H134 crores.

Detail of significant changes in Key Financial Ratios:

Debt-equity ratio: The decrease in debt equity ratio in the current period is due to reduction in borrowings and better working capital management.

RONW (%): RONW (%) was on a lower side mainly because of an increase in the cost of goods sold due to higher raw material costs leading to reduced profitability.

Interest coverage ratio: Interest coverage ratio reduced in the current financial year due to reduced profitability and higher interest costs driven by increased repo.

Internal control systems and their adequacy

Lux Industries has a robust internal control system to ensure that its business processes are efficient, transparent, and compliant with regulatory requirements. To achieve this, we have established well-defined processes for areas such as procurement, IT controls, HR, finance and accounts, inventory management, and logistics. The company has implemented adequate digital capabilities

such as automation and data analytics to minimize manual interventions, reduce errors, and increase transparency. Furthermore, Lux Industries, ensures that its internal control system is adequate to manage risks associated with the various business processes. This involves setting up adequate checks and balances, ensuring proper segregation of duties, and implementing regular audits and reviews to identify and mitigate any potential risks. By establishing a robust internal control system, your company has achieved better accountability, compliance, and efficiency, which will lead to better financial performance and long-term success.

Human resources and industrial relations

Lux Industries values the quality of its employees and recognizes the importance of equipping them with new skills to keep up with technological advancements. The company organized training programs in various areas such as technical and behavioural skills, business excellence, and leadership. With more than 3000 employees, Lux Industries has a substantial workforce to support its operations. By investing in employee development, the

company has improved productivity, customer service, and employee satisfaction while staying competitive in the market. Ultimately, a highly skilled and motivated workforce is the main contributor to the long-term success of Lux Industries.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectations and estimations which may be forward-looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.