Alok plans big H&A drive

H&A, a 100 per cent subsidiary of Alok Industries, which began operations two years ago,

has undergone numerous structural changes. Today, H&A stores operates on a cash-and-carry model offering five main categories of products, namely men’s wear, women’s wear, kids’ wear, home textiles and accessories. Going forward, Alok Industries now plans to take the number of H&A stores to about 400 by 2011. Also, the company is planning to add about 200 stores every year for the next two to three years, through the franchise route, with a major focus on Tier II and III cities.Presently, H&A has 220 stores in 20 states and 60 cities. The brand would be positioned in the affordable fashion category and a major branding and publicity exercise would be launched shortly to create visibility and awareness.

As on March 31, 2010, Alok Industries had a total gross debt of Rs 85.11.8 billion and a net worth of Rs 27.34 billion. In financial year 2010, the company achieved growth of about 45 per cent in sales to reach Rs 43.15 billion (including exports worth Rs 15.6. Looking at the fact that the company’s capacities are likely to reach optimum level by FY 2012, they are expecting decent growth both in sales and profitability. Having completed a major expansion drive, the company now would be more focused on consolidation of its operations. Reducing costs and optimizing efficiencies would be the major areas of concentration. Simultaneously, they would be aiming to move towards high value added items such as yarn dyed fabrics, technical textiles and work wear textiles which are high fashion/niche markets and therefore, enjoy good margins.