Alok eyes Rs 1,100 cr exports in FY08

Achieves earnings target despite rupee appreciation.

Alok Industries, the Rs 1,824-crore textile company, plans to ramp up its export earnings. It is targetting revenues of Rs 1,100 crore from the segment this financial year. According to a senior manager, it is eyeing Rs 1,500 crore in FY09.

The company has already achieved its export turnover worth Rs 640.4 crore out of its total turnover of Rs 1,434.4 crore in the first nine months of this financial year, a rise of 66.2 per cent on a year-on-year (y-o-y) basis.

The official, however, did not answer questions pertaining to weakening demand from the key US market and its potential impact on achieving its exports target over the next few quarters.

Despite 11-12 per cent y-o-y appreciation of the rupee, the company has shown a strong growth in its export turnover in the first nine months of FY08.

According to Dilip Jiwrajka, managing director, Alok Industries, "We were able to withstand the impact of a strengthening rupee via expanding sales of higher value products across our product segment, that includes home furnishings, men and women's clothing."

In addition, the company's growth in sales in the European market was derived from their earlier Czech-based acquisition Mileta, which provided them manufacturing and marketing capabilities in the region.

The company's other key export markets are in Latin America. In December 2007 quarter, its operating profit grew 22.3 per cent y-o-y to Rs 134.8 crore, while its net sales rose 14.75 per cent to Rs 550.78 crore.

Meanwhile, in the domestic market, Alok Industries is ramping up its retail network from 20 stores to 125 stores by the end of December 2008.

Its retail store network is branded as H&A. Also, Alok Industries is expecting to bring on stream its terry towel expansion project in Vapi by May 2008, which involves a capital expenditure of Rs 100 crore.