Alok Ind to open offices abroad

The firm's latest Rs 1,100 cr expansion at Vapi will take its total investment to Rs 2,500 cr

As part of its plan to reach more clients and beef up its marketing network, Alok Industries will set up international offices in its prominent markets this year. The first branch will open in Sri Lanka this month.

The Rs 1,300-crore company's second international branch will come up in the US in two to three months.

"Sri Lanka has lately become a big market for us. We need an office to service the Lankan garment exporters. The US office will help us service clients better," said Dilip Jiwrajka, managing director, Alok Industries, which is an integrated textile player with interests in weaving, knitting, home textiles and garments.

Sri Lanka, along with other Indian subcontinent countries ""Nepal and Bangladesh "" and west Asia contribute about 5 per cent of Alok's sales in woven and knitted fabric. "We expect this to double this year," he said.

For Sri Lanka, it makes sense to have business with Indian suppliers. Its exporters get a 12 per cent subsidy in customs duty in European market for garments made out of fabric sourced from India.

The US is another major market for Alok. It sells almost 100 per cent of its bed sheets in that country. The company sells garments to the US-based majors such as GAP, JC Penny and Wal-Mart.

"Every other month, our design team has to make presentations to clients in the US. So, an office in New York will help us logistically," said Jiwrajka. He, however, ruled out the possibility of opening offices in Europe.

The company recently announced the third phase of expansion of its facilities. At Rs 1,100 crore, its latest expansion drive at its Vapi facilities takes Alok Industries' total investment to Rs 2,500 crore. The company will also open its factory outlets in Vapi and Mumbai.