Alok Industries Ltd - Stock Valuation and Financial Performance

Alok Industries (AIL) was set up in the year 1986.  AIL is engaged in business of yarn, weaving, knitting, processing, home textiles, apparel fabrics, garments and readymade garments.Alok was established in 1986 with its first polyester texturising plant being set up in 1989. It became a public limited company in 1993. Over the years, it has expanded into weaving, knitting, processing, home textiles and garments. And to ensure quality and cost efficiencies it has integrated backward into cotton spinning and manufacturing partially oriented yarn through the continuous polymerisation route. It also provide embroidered products through Grabal Alok Impex Ltd., its associate company.

It has evolved into a diversified manufacturer of world-class home textiles, garments, apparel fabrics and polyester yarns, selling directly to manufacturers, exporters, importers, retailers and to some of the world’s top brands.

Alok has a strong foothold in the domestic retail segment through a wholly owned subsidiary, Alok H&A Limited, under the cash & carry model that offer garments and home textiles at attractive price points.

Alok also has an international presence in the retail segment through its associate concern, Grabal Alok (UK) Limited. This entity owns more than 200 outlets across England, Scotland and Whales vending value for money ranges for menswear, womenswear, childrenwear, footwear, homeware and accessories.

In 1989 the company set up manufacturing facilities for texturising at Silvassa. Later in 1991 it started weaving operation at Bhiwandi, District Thane. AIL expanded its weaving capacity (50 Cimmco Looms) at Bhiwandi unit and texturising capacity (3 nos. texturising machines) at Silvassa. 

In 1995 the company formed a joint venture with Grabal, Albert Grabher Gesellshaft mbH & Co of Austria for financial and technical collaboration to manufacture embroidered products. This led to formation of Grabal Alok Impex through which AIL control its extensive embroidery operation.

The company set up its Knitting Division at Silvassa (8 machines) at Navi Mumbai in 1996. The company expanded its texturising capacity (5 nos. Texturising machines at Silvassa in 1997. Today Alok is amongst the fastest growing vertically integrated textile companies in India.

Products

The company manufactures apparel fabric, knitted fabrics, embroidered fabrics, polyester yarn, garments and home textiles.

It has also forayed into retail segment through its 100 percent subsidiary Alok Retail (India) under the brand name H & A stores. Presently, the company owns 32 stores.

The company also operates internationally through its acquired entity Mileta located in the Czech Republic. Mileta is European major in yarn dyed shirting, handkerchiefs and table linen, which specialises in high-value premium products. Mileta, Alok together have created apparel brand such as Mileta, Erba, Cottonova and Lord Nelson.

The company is also engaged in international retailing by taking strategic stake in a UK based retail company Hamsard 2353, now known as Grabal Alok (UK). The company has 218 stores under the brand name “Store Twenty One” that offers range of garments for women, men and children and home ware and related accessories.

Realty- It owns wholly owned subsidiary, Alok Infrastructure which has receive contract to develop  1700,000 square feet of premium office space in Mumbai.

Award and milestones

• 2009
   
  •ALOK HAS WON TEXPROCIL AWARDS IN THREE CATEGORIES FOR THE YEAR 2009
  â—¦GOLD Trophy for Highest Exports of Bleached / Dyed / Yarn Dyed / Printed Fabrics in Fabrics Category
  â—¦GOLD Trophy for Highest Exports of Bed Linen / Bed Sheets /Quilts in Made-ups Category
  â—¦SILVER Trophy for Highest Global Exports Category
  •OUTSTANDING EXPORTER OF THE YEAR - TEXTILES at the International Trade Awards 2008-09: presented by DHL CNBC TV18; awarded for the second consecutive year 
• 2010
   
  •ALOK HAS WON TEXPROCIL AWARDS IN THREE CATEGORIES FOR THE YEAR 2009-2010
  â—¦GOLD Trophy for Highest Exports of Bleached / Dyed / Yarn Dyed / Printed Fabrics in Fabrics Category
  â—¦GOLD Trophy for Highest Exports of Bed Linen / Bed Sheets /Quilts in Made-ups Category
  â—¦SILVER Trophy for Highest Global Exports Category 
• 2011
  Awarded the IMC - Ramakrishna Bajaj National Quality (RBNQ) Performance Excellence Trophy in the Manufacturing Category
  Awarded status of 'Recognised Star Trading House'
• 2012
  Completion of Expansion of polyester production from 900 tons/day to 1400 tons/day.
  The amalgamation of Grabal Alok Impex Limited (GAIL) into the company was completed on 1 March 2012 with effect from 1 April 2011.
• 2013
   
  •THE COMPANY HAS BEEN HONOURED BY THE MINISTRY OF TEXTILES, GOVERNMENT OF INDIA AT THE TEXTILE CONCLAVE 2013 – BRAND INDIA HELD IN NEW DELHI ON 3 DECEMBER 2013 AS FOLLOWS:
  ◦Largest Exporter – Mill Sector Fabrics
  ◦Largest Processor – Processing
  â—¦Largest Producer – Made Ups & Home Textiles