Alok Industries Performance
Fundamentals of Alok Industries
|P/E Ratio (TTM)||NA|
|Debt to Equity||-1.24|
Financials of Alok Industries
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||-249.83||-297.04||-226.14||-174.83|
|EPS in Rs||-0.5||-0.6||-0.46||-0.35|
About Alok Industries
Alok Industries Limited (AIL) manufactures textiles, including mending and packing activities, leather and other apparel products. In addition, the company provide embroidered products via its associate company, Grabal Alok Impex Ltd. It was incorporated in 1986 as a private limited company. The company’s first polyester texturising plant was set up in 1989. Alok Industries became a public limited company after an IPO in 1993.
The company has a strong presence in the domestic retail segment through Alok H&A Limited (a wholly-owned subsidiary) under the cash-and-carry model that offers garments and home textiles at attractive prices. The company has expanded its retail segment into international locations via its associate company, Grabal Alok (UK) Limited. The company has over 200 outlets across England, Scotland, and Wales.
In 2019, Alok Industries was auctioned under the insolvency and bankruptcy law by lenders to recover their unpaid loans. Reliance and JM Financial Asset Reconstruction Company placed a bid for Alok Industries for ₹5,000 crore, and now RIL holds a 40.01% equity stake in AIL. In contrast, JM Financial Asset Reconstruction Company (JMFARC) – holds a 34.99% equity stake in AIL. RIL, through its subsidiary, holds a 40% stake in JMFARC. Reliance Industries runs the operations of AIL through its three nominee directors appointed on the board of AIL.
In 2012, the company’s turnover crossed ₹8,900 crores, and exports logged at ₹3,030 crores. In addition, it finished expanding polyester production from 900 tons/day to 1,400 tons/day. Alok Industries won the silver trophy for second-best export performance for 2010-11 in the category of Polyester Yarn.
- Cotton Segment: AIL is integrated from spinning to weaving, processing, finished fabrics, bedsheets, towels and garments.
- Polyester Segment: In this segment, the company is starting from a continuous polymerisation plant to the production of chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), Draw Texturised Yarn (DTY) and Polyester Staple Fiber (PSF).
As of March 31, 2023, the company had the following subsidiaries:
- Alok Infrastructure Limited: It is a wholly-owned subsidiary of Alok Industries. The company made certain investments in the realty sector with this subsidiary.
- Alok Worldwide Limited: It is a wholly-owned subsidiary based out of the British Virgin Islands.
- Alok International (Middle East) FZE: It is based in Dubai and is a wholly-owned subsidiary of Alok Industries.
- Alok Singapore Pte Limited: A wholly-owned subsidiary of Alok Industries, and the company was incorporated in Singapore.
- Alok International Inc: It was incorporated in the USA and is a wholly-owned subsidiary of Alok Industries Limited.
Surendra Bhagirathmal Jiwrajka, Founder
Surendra Bhagirathmal Jiwrajka founded Alok Industries Limited in 1986. He started as a managing director and Executive Director at Grabal Alok Impex Ltd.
Siddharth Achuthan (Non-Executive, Independent Director)
Siddharth was appointed on September 14, 2020, on the company’s board. He was associated with Deloitte, Haskins & Sells for over four decades and served as Partner for 33 years.
- In 2013, the company announced the right issue in a ratio of 2 equity shares for every 3 equity shares on the record date of February 19, 2013.
- The company is optimistic about the demand for polyester due to the increase in cotton prices in the past years and customers seeking products in categories like athleisure, women’s fashion, lingerie, etc., where polyester is used extensively.
- India’s clothing exports increased from US$15.2 billion in 2021 to US$16.7 billion in 2022. Additionally, the government’s encouragement of the garment industry through several legislative measures and recently introduced programmes like PLI and MITRA are projected to significantly strengthen the apparel manufacturing sector.
- Business with zero promoter pledging.
- Rising export income.
- Declining sales and profits.
- Deteriorating cash position.
- Higher expected demand for polyester.
- Government’s focus on increasing garments export.
- Instability due to the pricing of raw materials.
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What is the Share price of Alok Industries (ALOKINDS)?
Can I buy Alok Industries (ALOKINDS) shares?
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- Direct investment: You can buy Alok Industries (ALOKINDS) shares by opening a Demat account with Angel One.
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Is Alok Industries a Debt free Company?
No, Alok Industries is not a debt free company.
What is the main business of Alok Industries?
The main business of Alok Industries is
Who are the promoters of Alok Industries?
The two main promoters of Alok Industries are Reliance Industries Limited and JM Financial Asset Reconstruction Company Limited.
What are the Subsidiaries that comes under Alok Industries?
Some of the top subsidiaries that come under Alok Industries are Alok Infrastructure Limited, Alok International Inc., Alok Global Trading (Middle East) FZE, Alok International (Middle East) FZE, Alok Worldwide Limited, and Alok Singapore PTE Limited.