Analyst Meet / AGM     15-Jan-09
Analyst Meet
Alok Industries
Aggressive expansion underway, loom capacity to increase to 152.5 million meters per annum
The company conducted a plant visit of its Silvassa and Vapi plant on 14th January 2009. The company's management has the spinning, weaving, knitting, garmenting, and POY & texturising facilities in these plants.

Highlights-

Spinning operation

  • The spinning operation of the company was set-up in order to reduce dependence on outside agencies to source the yarns requirements for the weaving and the knitting operations.
  • The company has an installed spinning capacity of 33,300 tonnes per annum of yarn from the installed ring frame spindles and open-ended rotors.
  • Currently the company has 2,51,712 ring frame spindles and 936 open-ended rotors.
  • In the IV phase of expansion the company is planning to install 48,000 spindles with an installed capacity of 13,680 tonnes per annum and open ended spinning of 11,520 tonnes per annum.
  • Thus after expansion the spinning capacity would increase to 58,500 tonnes per annum by the end of March 2009.
  • The company has tied up with renowned organic and fair trade cotton projects in Maharashtra and Madhya Pradesh and also in West Africa for supply of organic and fair trade cottons required for its spinning division.

Partially oriented yarn (POY) & Texturising operation

  • The company has 68 Himson make Texturising machines with a capacity of 75,000 tonnes per annum of texturised polyester yarn.
  • Going forward the company plans to install 36 more machines of the same make in order to increase the capacity to 1,14,000 tonnes per annum.
  • POY manufacturing capacity currently is around 54,000 tonnes per annum which would be expanded to 1,08,000 tonnes per annum by March 2009.

Weaving operation

  • The company has modern weaving facilities using the best technology currently available in the world, which includes Benninger warping and sizing machines from Switzerland for preparatory, projectile sulzer make looms, wider width/narrow width, air jet looms of toyoda / picanol make, rapier sulzer make looms with Staubli make dobby and rapier sulzer make looms with Bonas make jacquard attachment.
  • The company has 709 apparel width looms with an installed capacity of 70 million meters per annum and 626 wide width looms with an installed capacity of 47.05 million meters per annum in Silvassa.
  • Under the ongoing phase III of expansion the company plans to install 378 Picanol make air jet wider width looms with an installed capacity of 24.8 million meters per annum by the end of the current financial year.
  • During this period the company would also install 288 normal width Picanol make airjet /rapier looms with an installed capacity of 25 million meters per annum. So after the full expansion the total number of looms would increase to 1,828 with an installed capacity of 152.5 million meters per annum.

Knitting operation

  • The company has 167 Mayer & Cie /Pialung make knitting machines of various type like single jersey, double jersey, interlock, auto striper, rib structure etc. The current installed capacity thus is around 18,200 tonnes per annum.
  • The company plans to add 429 more Mayer & Cie /Pialung make knitting machines by April 2009, thus taking the total installed capacity to 67,200 tonnes per annum with 596 machines.

Garment operation

  • The company is a nominated vendor for some of the big international retailers like GAP, Marks & Spencer and JC Penny etc.
  • The company has an installed capacity of manufacturing 15 million pieces per annum from a total of 1651 Juki make stitching machines. Further the company plans to increase the capacity by 7 million pieces per annum by installing 1000 more Juki make stitching machines by March 2009.

Vapi processing unit

  • The company has its processing units (Wider width-home textiles, Normal width-Apparel fabrics, Knitting-apparel fabrics and yarn dyeing) in Vapi Gujarat.
  • The current capacity of wider width (Home textiles) processing units is around 82.50 million metric tonnes per annum, whereas that of normal width (Apparel fabrics) is around 105 million metric tonnes per annum.
  • Knitting processing unit is expected to have a capacity of 67,200 tonnes per annum by March 2009.
  • The company has a captive duel fuel power plant with a capacity of 25-mega watt in Silvassa. The production capacity would be shortly increased to 50-mega watt.
  • The power plant currently runs on furnace oil, however as soon as the gas is made available it can easily switch to gas with lower cost and more efficiency.
  • The current gas pipeline is available till Vapi, however gas line till Silvassa is soon expected, as there are many customers who are willing to buy gas from this region.
  • Although the current economic crises in the West have impacted the margins of the company, the volume of orders from the overseas has remained unabated.
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