In April, 1935, the Third State Watch Factory was formed in Penza, a city 625 kilometres southeast of Moscow. This factory was reconstructed from the remnants of the Frunze Bicycle Plant using newly-acquired tooling from LIP. LIP engineers and technicians were also responsible for supervising the installation of all equipment and for training Russian engineers. (See also: ZIF)

 

The factory was renamed Penza Watch Factory in the year 1940. This factory focused primarily on small-sized ladies movements, and throughout the 1950s a number of different brands were produced, including Aurora, Junost, Kometa, Lux, Lyra, Mechta, Sura, Vesna, and Zvezda. 

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The Lux brand (Люкс, meaning "luxury"), along with the Sura brand, represented the only men's watches to be manufactured at the Penza Watch Factory in the 1950s. These watches relied on ladies watch calibers, but were secured in the larger cases by way of a movement spacer. The original design was an unabashed copy of the Doxa Grafic, but over time other dial styles were produced.

 

The Lux brand was retired around 1964, when all watches produced at Penza Watch Factory were consolidated under a single trademark: Zaria.