BUSINESS PROFILE :
Alok Industries Ltd. (AIL) promoted by the Jiwrajka family of Mumbai includes in its portfolio an entire array of textile solutions covering weaving, knitting, processing, home textiles, embroidery, garments and texturising. The company is making a transition from a pure-play fabric manufacturer to an integrated player with presence in all segments.
The company recently entered home textiles and the division has been successful with a contribution of 17% to the total sales revenues. Alok Industries presently operates through four divisions namely apparel fabrics, home textiles, garments and texturising, with the apparel fabric division being the major contributor (56% to sales). Its customer base includes GAP, JC Penney, Macys, Wal-Mart, Bed Bath & Beyond, and Linen & Things besides local garment exporters.
The company has set up six facilities at Vapi, Navi Mumbai & Silvassa and all its major plants are fully backed by 100% captive power which helps in reducing electricity costs that form a major part of the production cost. The company has a joint venture with Grabal of Austria named Grabal Alok Impex Ltd. that deals exclusively with embroidered fabrics and a separate plant with imported schiffli and multi head machines has been set up for embroidered knits and woven fabrics production.
AIL in the year 2004 announced a capex plan of Rs 1,190 million for expansion of its facilities, which is currently under implementation and will continue till 2007. With the completion of the plan, per annum capacity for bed linen will increase to 60 million meters, in woven apparel fabrics to 82 million meters, in knitted apparel fabrics to 16,800 tonnes and 8 million pieces in readymade garments. The increase in capacity expansion has been undertaken so as to focus on exports of garments, which is expected to have a high growth rate. Besides the company also has plans to undertake backward integration by producing partially oriented yarn (POY) that will further help the company become a vertically integrated textile manufacturer and reduce costs.
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