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Suresh P. Iyengar

Mumbai, Oct 28 Alok Industries, an integrated textile company, will venture into the work-wear segment, which was dominated by unorganised small-time traders.

Mr Surendra Jiwarajka, Joint Managing Director, Alok Industries, said the company has initiated talks with some of the major companies in the hospitality, automobile and aviation sector. Refusing to name the company with whom negations are initiated, he added “We are in talks with many companies, but do not want to reveal them until a final deal is signed.”

Apart from workers, the company has also developed work-wear for executives with different shirt and tie combinations. Being an integrated textile company, it is confident of offering a better rate than the traders.

Alok Industries has entered into contract farming for organic cotton in Madhya Pradesh and Vidarbha in Maharashtra. Organic fabric in India is still in its nascent stage as the acreage under organic cotton itself is miniscule.

Organic fabric will be priced at a premium to other cotton clothing and comes with a certificate for authenticity.

The company has drawn a capex of Rs 40 crore for the financial year 2008-09 to expand its retail network H&A and venture into new international markets. It plans to add 100 retail stores, taking the total to 125 by end of this year.

It is exploring Europe, Latin America and the West Asian markets for exports to reduce dependence on the US. “Despite the financial crisis in the global markets, we expect our exports to rise 20 per cent to Rs 1,200 crore in fiscal 2009,” he said.

Exports, which currently form about 45 per cent of Alok’s revenue stream, were led by the US accounting for about 35 per cent of total exports.

More Stories on : Outlook | Textiles

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