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Grabal Alok raises equity holding in Hamsard to 75

22 Dec '06

3 min read

Grabal Alok Impex Limited (Grabal), part of the Rs.4000 crore Alok Group and manufacturer of embroidered products is increasing its stake in Hamsard 2353 Ltd (Hamsard), a UK based retailer, to 75 percent from the current 26 percent for a consideration of GBP 10 million.

Hamsard has around 207 retail outlets across England, Scotland and Wales and sales of about GBP 110 mn. Hamsard currently sources about 80 per cent of its garments from in and around the UK, and the balance from countries like India and China.

“The Alok Group has recognised the growth opportunity for Hamsard and is confident that this significant investment will accelerate this growth and enable it to be realized."

"The strengthening of our relationship with Hamsard is also a concrete step in growing our exports market and will help in consolidating our European presence,” said Dilip Jiwrajka, Director, Grabal Alok Impex Limited.

He further added “With change in management will occur change in strategy of sourcing and Hamsard will procure about 80 per cent of its sourcing needs from Asian countries like India and China, thereby considerably reducing procurement cost."

"This also provides a good business opportunity for the Alok Group to supply garments and bed linen to Hamsard's large network of retail outlets in the UK and gain visibility for our products. We also intend bringing the Hamsard retail store format for our India retail operations.”

Mr. Findlay Caldwell, Chief Executive of Hamsard comments “This is fantastic news for our company and all our employees. The expertise and financial commitment of the Alok Group will enable us to strengthen our position in what is a large and growing market in the UK and as the best value for money fashion retailer on the local High Street.”

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