Home / Knowledge / News / Textiles / Alok Industries outlines strategies for increasing operating margins
Alok Industries outlines strategies for increasing operating margins
27
Jan '09
Mr Dilip Jiwrajka, MD, Alok Inds Ltd
Mr Dilip Jiwrajka, MD, Alok Inds Ltd
The global economies and that of all big and small companies have turned topsy turvy in the last few months. The fallout of the financial crisis has unfolded a tsunami like crisis which was unimaginable, even just a few months ago. The mantra of the hour, for each and every company, however big or small is surviving through this crisis which has reached unprecedented proportions.

fibre2fashion.com spoke exclusively to Mr Dilip Jiwrajka, Managing Director, Alok Industries Ltd, to bring to our readers a correct picture of the turmoil and the current domestic market situation. In less than two decades, Alok has grown to become a diversified manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns selling directly to manufacturers, exporters, importers, retailers and brands the world over. With the sales turnover of around Rs.21.74 billion in FY 2007-08, Alok is amongst the fastest growing vertically integrated textile companies in India.

We started off by asking Mr Jiwrajka, the impact of the crisis on the off take of polyester and cotton. He replied at length by saying, “According to CRISIL Research, domestic apparel sales (man made) are expected to rise at a CAGR of 9.1% (in value terms) and in non-clothing at CAGR of 19.9% (in value terms) till 2011-12. Demand for polyester will be driven by sarees and ladies dress materials. A large part of the Indian population still wears affordable non-cotton clothes because of its high tenacity and strength.”

He added by saying, “The company has manufacturing facility for manufacturing texturised yarn with backward integration into Partially Oriented Yarn (POY) which is the raw material. The company is further integrating the polyester facility by setting up continuous polymerization plant which will not only reduce the cost of raw material i.e. POY but also facilitate in manufacturing value added products like Catonic Yarn, Full Dull Yarn and other colored yarns. The demand for polyester is good and we see good growth potential for polyester in the domestic market.

On the current market trends of cotton, he continued, “India's cotton production has systematically increased over the last several years from a low level of 158 lakh bales in 1997-98 to an estimated 325 lakh bales in the year 2008-09, more than double in a decade. Due to global deceleration in the textile and apparel sectors, the demand for cotton has declined. However, in line with the previous year's global demand and remunerative prices, the government has declared high Minimum Support Price (MSP) for cotton for the year 2008-09 season. This has led to price variation between domestic and imported cotton."

Speaking on how Alok Industries tackled the situation, he said, “We had contracted the cotton at Rs.18,000 per candy, the price of which has gone up to as high as Rs. 28,000 per candy. Alok has benefitted from the price volatility in two ways. Our raw material cost was comparatively cheaper thereby yielding higher margins and secondly we also sold part of the cotton stock at higher levels. Presently, the cotton is being quoted at Rs. 21700/- per candy and is likely to go up to Rs. 22000/- per candy and then stabilize.”


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search