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Alok plans Rs 11 bn expansion

Textile company Alok Industries Ltd, plans to invest Rs 11 billion to expand its yarn-making, weaving and garment units.

india Updated: Mar 16, 2006 17:43 IST
Reuters
Reuters
None

Textile company Alok Industries Ltd, plans to invest Rs 11 billion to expand its yarn-making, weaving and garment units, Managing Director Dilip Jiwrajka said on Thursday.

About Rs 9 billion would be raised as debt from the federal government's textile technology modernisation fund and Rs 2 billion from internal accruals, he said in an interview.

"The capacities will be operational in 2008," he said.

The cotton yarn capacity would grow four times to about 20,250 tonnes and garment capacity nearly double to 15 million pieces a year.

Home textile output would grow to 82.5 million metres a year from 60 million metres, he said.

Alok has just completed an expansion spell that cost Rs 19 billion over the last five years, increasing output in home textiles, fabrics, garments and polyester texturised yarn.

The company reported sales of Rs 12.24 billion for the financial year 2004/05.

Several Indian textile firms are ramping up volumes with an eye on global markets. Industry analysts say an investment of $15 billion is needed to achieve $30 billion annual textile exports.

Alok shares were flat at Rs 75 in a firm Mumbai market.

First Published: Mar 16, 2006 17:43 IST