Alok Industries to raise Rs 2,000 crore via land sale in two years

MUMBAI: Textile firm Alok Industries today said it is planning to raise about Rs 2,000 crore through a land sale over the next 24 months as part of consolidating its debt and hopes to double exports in the next three years period.

"We have decided to sell lands in Vapi, Silvassa and Mumbai worth Rs 2,000 crore. We hope to complete the sale in the next two years period," Executive Chairman Ashok B Jiwrajka told reporters here.

The company is also hopeful of getting sanction from banks to its debt. The company is also planning to swap its local loans with dollar loans to cut its interest cost by almost Rs 600 crore. The company has consolidated debt of Rs 20,000 crore, Jiwrajka said.

The company whose exports stand $650 million, is hopeful of doubling the same in the next three years.

"The overseas buyers were looking at India as an alternative to de-risk their sourcing requirements from China. Since China is phasing out of the export market, it is the replacement demand we are looking to capture. Our exports is USD 650 million in FY 2014 and we are hopeful to double the same in the next three years period," Alok Industries CFO Sunil Khandelwal said.

With the objective of strengthening its US operations and design capabilities, the company had strategic tie up with US-based Next Creations. The company has set up the SPV in Singapore and market international brands in Sri Lanka, Bangladesh, UK and European markets, Jiwrajka said.

Source : economictimes.indiatimes.com