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Alok Industries to invest Rs 1.5bn on its retail expansion
Sep '08
Alok Industries Limited (Alok) is amongst the premier business organizations in India and a leading textile manufacturing company. Alok's vertically integrated textile operations begin with spinning of high quality cotton yarn and progresses to weaving, knitting, processing, made ups and garment making. Alok surpasses global quality benchmarks in each product segment, namely, home textiles, apparel fabrics, garments and polyester yarn.

Alok operates its retail stores under the Store brand "H&A". This store retail Garments and Home Textiles & Accessories & marks Alok's foray into branded retail: targeted towards the mass market and offering a 'value for money' proposition. Alok is focusing on ramping up internal efficiencies in supply chain and procurement, while simultaneously looking to increase reach through franchisee arrangements. As a measure to grow awareness, a publicity campaign is being planned in various media through ATL & BTL activities.

H & A stores are being positioned as family stores where each store offers to customers the entire product range from Mens Wear, Womens Wear, Kids wear, Home Linens to Accessories. We offer, complete authority to the customers to choose from a wide product range, to suit every occasion. H&A stores are increasingly being recognised for the quality and range of its offerings as evidenced by the growing number of repeat customers.

The stores sell merchandise under its private label brands. The Men's collection is sold under the brands "Cotton Island" and "Lord Nelson" for formal wear, while Casual Mens Wear is sold by the name "Side FX".

The Women's products are retailed under the brand “Ëditions". Kids wear is sold under the brand name "Vintage Angels" and “Vintage Warriors” The Home Textile range is retailed under "Reflections" and finally Accessories are sold under the name "X10TION".

The garments are all high quality merchandise with international styling. The USP of the store is the sensible pricing it has to offer along with fashion and Value to the Customer the essence of which is captured in its very appropriate signature line “Spending Wisely Never Felt So Good”.

For FY 2007-08 Alok Industries Ltd achieved a turnover of Rs. 2,170 crores of which exports were Rs. 1,036 crores, representing 48% of the total turnover.

H&A has opened 35 stores in Maharashtra, Gujarat, Dadra & Nagar Haveli, Andhra Pradesh , Karnataka, Punjab , Uttar Pradesh, Chandigarh & Rajasthan.

The company plans to scale up H & A stores to about 250 by the end of March 2009, with a target of having 500 stores by FY 2010, with a pan-India presence.

The company would be investing about Rs.150 crores primarily for setting up additional stores and for marketing activities in the next 3 years. The company plans to expand its retail business through company managed stores & Franchisee Model. The company would primarily market only products of Alok Industries ltd from its retail outlets. For FY 2007-08 the retail sales were Rs. 6.50 crores of 20 stores as on march 31st 2008.

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