Alok Industries began its work as fabric traders and suppliers to the garment industry in 1986 as a private limited company. Beginning with texturising of yarn, the company steadily expanded into weaving, knitting, processing, home textiles and readymade garments. It also controls an extensive embroidery operation through its sister concern, Grabal Alok Impex Ltd. Today, Alok is amongst the A Group listed companies of India's leading stock exchanges. In less than two decades, it has grown to become a diversified manufacturer of world-class apparel fabrics selling directly to garment manufacturers and exporters not only in India, but the world over. In 1995 company made a Financial and Technical collaboration with Grabal, Albert Grabher Gesellshaft GmbH & Co of Austria for manufacture of embroidered products through a Joint Venture Co. viz.Grabal Alok Impex Ltd. Alok Industries Limited recognizes the importance of managing effectively and seeking continuous improvement in health, safety and environmental matte
rs as an integral part of its business activities.

Products & Services—

Alok is fully involved into innovation and product developments, manufacturing and quality assurance. Company’s production facility spread over 6 locations in Navi Mumbai, Vapi and Silvassa. Company’s major plants are fully backed by 100% captive power, global standard effluent treatment plants, high standard facilities for manufacturing, product development and marketing teams, enabling to meet customer’s satisfaction in terms of precision, quality, in-time delivery, environmental and social concerns. Company made a huge investment in sophisticated ISO 9001 compliant world-class testing lab, shows the reflection of Alok’s commitment, confidence as well as philosophy towards maintaining global standards.

Company have the inputs like yarn, dyestuffs and chemicals, every batch of fabric is tested for weaving and knitting standards, color fastness under different conditions, strength, consistency, and all pre-defined parameters. Company have fashion and functional fabrics includes shirting, dress materials, voiles, cambric’s, poplins, crepes, georgettes, gauze, stretch fabrics, fil-a-fils, oxfords, chambrays, ginghams, flannels, yard dyed stripes, checks, herringbones, tassars and a wide range of structured fabrics in 100% cotton, polyester, viscose, Acrylic and Blends. For high performance cotton and cotton blended bottom wear, Alok offers world class canvas, drills, twills and chinos.

Ultra-modern units of company offers a number of finishes like Mercerised, Sanforised, Micro sanded, Soil Release, Easy Care, Calendared, Chintz, Wicking, Wrinkle Free, Stain Proof, Fire Resistant, Teffon and Brushed. From single jersey, interlocks & ribs to high fashion jacquards and terrys, from pique to auto stripes and polar fleece, Alok offers a very comprehensive and high fashion range of over 5,400 tons of knitted fabrics annually in 100% cotton, polyester, viscose, Lycra, lurex, and their blends.

In collaboration with Grabal of Austria, company set up Grabal Alok Impex Ltd. to deal exclusively with embroidered fabrics. A separate plant with imported schiffli and multi head machines is well geared to produce innovative and high fashion range of embroidered knits and woven fabrics. Alok offers high quality knitwear from its state of the art plant at Navi Mumbai, Building on the advantage of in house facilities for high quality circular knitting, processing of knitted fabrics, printing and embroidery, Alok also offers finished knitwear to its discerning customers in India and internationally, mainly U.S.A.

Valuations

Alok Industries reported a substantial rise in standalone net profit for the quarter ended March 2009. During the 4th quarter, the profit of the company rose 30.44% to Rs 701.00 million from Rs 537.40 million in the same quarter last year. Net sales for the quarter rose 25.33% to Rs 9,083.90 million, while total income for the quarter rose 29.53% to Rs 9,247.50 million, when compared with the prior year period. It posted earnings of Rs 3.61 a share during the quarter, registering 22.37% growth over previous year period. At CMP stock is trading at very attractive valuation of 1.18 P/E multiple of its FY2009 earnings. We recommend investors to Strong Buy “Alok Inds” at every correction with Medium to long-term target of Rs 50.