Alok Inds to create 4 special business units

Alok Industries, an integrated textiles maker, is restructuring its businesses. It is creating four special business units (SBUs) to look after four businesses namely international, infrastructure, garment and domestic retail. Each SBU will be under a chief operating officer while Alok will continue to be engaged in the spinning, apparel fabric, home textiles and polyester yarn.

The exercise is aimed at sharpening the focus of the company's entire businesses so that the shareholders' value could be maximised, said Managing Director Dilip Jiwrajka. The move would also help each SBU to raise funds for their future expansion without diluting the promoters' stake at Alok, he added. The promoters hold nearly 30 per cent stake in Alok.

Experts said Alok Industries would be the holding company of these SBUs, under the proposed structure. Further fund raising exercise of the SBUs would not keep Alok Industries' gearings under pressure, they added. The debt-equity ratio in Alok Industries stands at 2.5:1. Under the new plan, Alok Industries International, a wholly owned subsidiary, will look after the company's international business comprising the Czech firm Mileta, the US distribution company Aisle 5 and Q&S. R Narayan, vice-chairman of Q&S, will be at the helm of affairs of the international business.

The infrastructure business is being taken care of by Alok Infrastructure. It will be engaged in setting up special economic zones and lease rental business. S C Goyal, director (project) of Alok, would be the CEO of the infrastructure business, which Jiwrajka hoped to be the maximum contributor to the growth of the group. The firm is in the process of acquiring a 200 acre SEZ at Silvassa.

Alok Clothing will spearhead the group's garment business under the stewardship of Suraj Alwa, who is now head of Alok Industries' garment division.