Mumbai: Textiles firm Alok Industries seeks to double its revenue to around $3 billion over the next three years, primarily on growing exports and a resurgence in domestic demand, a top official said on Friday.
The firm sees exports touching Rs2,500 crore by the end of the currrent financial year against Rs1,500 crore last year, managing director Dilip Jiwrajka told reporters on sidelines of an industry conference organised by consultantcy Technopak Advisors.
The company would open 80 retail stores in UK in FY11, taking its total tally to 300, Jiwrajka said.
“Our export orderbook is looking really good,” chief financial officer Sunil Khandelwal said.
“We are exporting a larger number of products. We are now also exporting polyester yarn in a big way,” Khandelwal added.
The firm plans to double its polyester yarn capacity to 400,000 tonnes by December. It is also adding 50,000 spindles to its existing 300,000, he said.
Alok Industries has earmarked a capital expenditure of Rs450-500 crore for FY12 and FY13 each to ramp up capacity across products, including terry towels, bedsheets, technical textiles and polyester. The company is going through a Rs700 crore expansion programme in the current fiscal.
There was “enormous scope” in the Indian textile industry, which was growing at an average of 15% per annum, he said.
“We are driving on a highway, and on highway we can only drive in the fifth gear.”
The company’s current gross debt is at Rs8,600 crore, which it seeks to pare through increased internal accruals and fund-raising by selling off its real estate properties. At 2.09 p.m, share prices of the company were trading up 5.7% at Rs20.40 a share in a flat Mumbai market.