Alok Industries, a Mumbai-based vertically integrated textile player, has roped in Asia Bridge as a private equity player for its retail subsidiary – Alok H&A. The deal size is of Rs 45 crore.
Alok H&A is engaged in the cash and carry business of apparels and home textiles across the country with its 150 stores at present.
The company has drawn up a massive expansion plan with a view to achieve a pan-India footprint and is eyeing 1,000 stores in the next three years.
The company, by the end of the current financial year, will take the number of stores to 250. And in FY11, the textile major is aiming to add another 250.
Alok Retail also has plans to launch 4-5 private labels by next financial year. Currently, it has 9 labels, including Cotton Islan, Cotton Ova and Urban Legend (for men), Side FX and Edition (women), Vintage Angels and Vintage Warriors for kids, Reflections in home furnishing segment and Extensions in accessories.
The company has plans to expand its floor area from the current 800 sq ft to very large format lifestyle stores spread across 2,000-2,500 sq ft.
With such an aggressive expansion plans and brand building activities, Alok Retail expects to break-even in FY11.
The company is launching brand promotion campaign too in the next 3-4 months.
Source: Business Standard