Alok Industries has acquired a 60 per cent stake in the Czech Republic-based fabric manufacturer, Mileta International. | |
| The company hopes it will help target the European market especially when more than 80 per cent of its exports are US-bound. |
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| "This acquisition is aimed at making further inroads into the growing European market and strengthening our presence in the fashion-conscious apparel and home textile segments," said Dilip Jiwarajka, managing director, Alok Industries. |
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| The acquisition process, which is expected to take three months, is valued at euro 13.96 million (approximately Rs 84 crore). However, Alok is also eyeing taking another chunk of 19.6 percent stake in the Czech company. |
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| "Taking further stake will depend on the performance in the next three to four years. If it works out well we will go for it," said K H Gopal, company secretary, Alok Industries. |
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| Though so far it has not been worked out how much of the required fund will be raised from internal accruals and borrowings, several Indian institutions have approached the company. |
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| "Our presence in terms of exports in Europe is marginal. Acquiring stake in Mileta will boost our exports in the continent," Gopal added. |
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| At present, Alok exports worth Rs 400 crore and is targeting to raise the level up to Rs 550 crore by the end of current fiscal. |
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| The memorandum of understanding (MoU) signed for acquisition will allow Alok Industries to use brands of |
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| Mileta, including Mileta, Erba, Cottonova, Lord Nelson and Wall Street in India, to widen its retail presence. Mileta will provide design and marketing inputs, training and transfer of technology. |
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| Alok expects Mileta's operations to be integrated into it within 12 months after the acquisition. |
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