\nEconomic Times, India
\nMUMBAI: Textile manufacturing company, Alok Industries, is planning to tap the growing institutional ready-made garments sector to boost its revenue. With this move, the company will be shifting its focus from the luxury segment to the lucrative mass-market segment that has, so far, clocked at a rate of 15%.
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\n\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe started with supplying fabrics to institutions, but we are now entering the ready-made work wear sector,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said chief financial officer of Alok Industries, Sunil Khandelwal. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cInstitutional garment segment is profitable and the margins are quite high with big volumes of order for our investment. The competition is less here,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d he added.<\/p>\n
The company plans to finance its latest initiative through grants from the government\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Technology Upgradation Fund. It will set-up a dedicated unit for institutional garments at Silvassa. The company will spend Rs 15 -20 crore in the work-wear segment.<\/p>\n
According to Mr Khandelwal, Alok generates Rs 180 crore of sales annually only through institutional garments and fabrics. The company produces 50,000 work wear garments on a monthly basis.
\n\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cUS and Europe will be losing out on their textile manufacturing base and this share will ultimately come to India and China,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Mr Khandelwal.<\/p>\n
India ranks sixth in the institutional garment sector. While China and Bangladesh are big players in production of institutional garments, the US, Europe, Middle East and India also have a strong demand for this segment. However, Indian textile exporters and manufacturers have suffered the consequences of a bearish US market.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cUS and Europe will be losing out on their textile manufacturing base and this share will ultimately come to India and China,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Mr Khandelwal. India\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s contribution to world textile market is expected to increase to 7-8% by 2012 from the current 4%, he added. The company\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s shift towards finished garments is, in fact, a relief for exporters who were hit by the appreciating rupee.<\/p>\n
US recession and rising input costs have forced many textile companies to look for larger avenues and growth on the local front. Alok has also started in a big way with its retail chain, Home and Apparels. Due to rising inflation, textile companies are targeting the mass market and not the high end buyer of premium products.<\/p>\n
Alok has also put off its plan of bringing Peacock Alley, a premium bed linen and bath luxuries line to India for the next two years. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe don\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t see the market for premium products in India yet. Organised retailing is taking shape now and the mass market model is the fastest,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Mr Khandelwal.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economic Times, India MUMBAI: Textile manufacturing company, Alok Industries, is planning to tap the growing institutional ready-made garments sector to boost its revenue. With this move, the company will be shifting its focus from the luxury segment to the lucrative mass-market segment that has, so far, clocked at a rate of 15%.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n