Alok to set up 91 'homes and apparels' stores

As part of its expansion plans, the Rs 4,000 crore Alok Industries will increase its 'homes and apparels' store strength to 100 by March 2008. The current strength of stores is 9.

Alok group is also planning to bring the UK-based Hamsard to India in the next two years. The group is also planning to open 450 stores under Hamsard name in India. Its group company, Grabal Alok Impex bought Hamsard 2353 (Hamsard), for a consideration of £8 million in December 2006.

The company wants to make Asia, the main hub of sourcing for Hamsard. Alok Industries Managing Director Dilip Jiwrajka said Grabal Alok would source 90 per cent of Hamsard products from India, China and Bangladesh.

At present, Hamsard sources 87 per cent of its products from the UK. "We have offices in Bangladesh and Sri Lanka. Soon we will open office in China." added Jiwrajka.

From its acquisition of Mileta International, Czech Republic, Alok is planning to manufacture Lord Nelson, Wall Street, Osaka, Cottonova brands of shirting fabrics and shirts for international and domestic markets.

"Our association with Mileta is a win-win for both of us. We will get designs and know-how from them. Mileta can leverage on the cost advantage from our manufacturing. In fact, we want to achieve a production target of 40 million pieces within next two years," Jiwrajka said.

He said the company would launch an international home textile brand in the country in February and that would be a licencee agreement.

The company will manufacture Mileta's handkerchiefs, table linen and bed linen brands including Erba, Mileta in Silwasa from March this year and currently it is installing hemming machinary in its complex.

"Now we are producing the fabric for these products and ship them back to Mileta. Alok also has licence for DAKS London's handkerchief brands except the US and India. We will create domestic markets for Mileta's brands apart from exports," said Arpan S Mukherjee, head, accessories division, Alok Industries.

According to Jiwrajka, the companies can not leverage on retailing without proper back-end.

"We will strengthen our back-end before full-fledged entry into the retailing. Now our plan is to supply fabrics and apparels, either to the private labels or to our own brands, to big international retailers. Already we are vendors to Wal-mart, JC Penny, Marks & Spencer, GAP."