The Hindu Business Line : Alok Ind setting up terry-towel plant in Silvassa

Silvassa, Nov. 27 Textile company Alok Industries Ltd is setting up a new plant at Silvassa for manufacturing terry-towels. The initial production capacity of 40 tonnes per day could be expanded to 60 tonnes per day eventually, said Mr Ashok Jiwrajka, Executive Chairman. It is part of the phase-III expansion of the company with a capital expansion plan of Rs 1,050 crore.

“The phase IV expansions by March 2009 of Rs 1,180 crore include addition of one lakh spindles, a 50 mega watt power plant and 22.5 million metres per annum processing capacity among other things,” said Mr Sunil Khandelwal, Chief Financial Officer. The first phase expansion saw an investment of Rs 550 crore, while in the second phase, Rs 980 crore was spent, he added.

SEZ

The company has received the final approval for its Special Economic Zone for textiles at Silvassa on 200 acres, according to Mr Dilip Jiwrajka, Managing Director. The construction of the SEZ will start in January 2008 and Alok will use 30-35 acres of it for its plant with installation of 1,000 machines each for garments and made ups. “Until now we have invested Rs 25-30 crore on land,” said Mr Dilip Jiwrajka.

Retail plans

The total retail business, both domestic and overseas, is close to Rs 200 crore and the company plans to operate 500 retail stores under its brand H&A by 2010, according to Mr Ashok Jiwrajka. The company currently runs 14 stores and recently acquired European company Mileta International. Mileta’s brands – Erba and Cottonova – will be sold in India after March 2008, said Mr Dilip Jiwrajka. The company currently owns 60 per cent of Mileta and has an offer of acquiring 20 per cent in the next one year.

Technical textiles

Alok Industries plans a foray into the technical textiles segment and will undertake test marketing by middle of next year, said Mr Dilip Jiwrajka. The areas where the company is looking to venture into are posters, tarpaulins and road under covers.

The fire at the Silvassa unit in August resulted in a loss of Rs 200 crore plus loss of profits and the company reported a turnover of Rs 465 crore during quarter ended September 2007.

Exports account for 40-45 per cent of Alok’s business and the company is looking at Rs 1,000-crore exports by March 2008. Alok Industries will be manufacturing 22 million pieces of garments this year and is targeting total revenues of Rs 4,000 crore by 2010, said Mr Khandelwal.

More Stories on : New Projects | Textiles

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page