Textile firm Alok Industries Ltd is looking at a revenue growth of about 30 percent each in the next two years, with exports expected to contribute almost half the growth, a top official said.
"Exports, particularly to the U.S., will contribute nearly 50 percent of the growth", chief financial officer Sunil Khandelwal told Reuters.
Analysts expect Alok Industries to post revenue of 21.63 billion rupees for the year ended March 31, according to Reuters Estimates.
A likely recession in the U.S. is unlikely to hurt Alok, Khandelwal said.
"People are talking about the recession, but for U.S. consumers, textile is a basic item, so while they may cut down on cars and jewellery, I don't foresee much of a cut in their textile expenditure," he added.
Still, Alok is also looking at expanding into other geographical regions to boost growth.
"This year we have diversified into Europe, gone into Latin America and Africa as well. Our growth will be fueled by the organic expansion route," he said.
In January, Alok Industries said it was hiking its stake in Czech Republic-based Mileta, thereby taking its stake in Mileta to 79.80 percent.
The company is also starting a distribution business in U.S. through its unit Alok Industries International Ltd to supply home textile products to retail stores there.
Through this unit, Alok Industries is entering into a strategic tie-up with an U.S.-based branding and distribution company called Aisle 5.
"Through Aisle 5, we are getting a distribution right for home textile products for certain supermarket stores", he said.
Link to the article: http://in.reuters.com/article/businessNews/idINIndia-32956220080410
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