Alok Industries Limited

 Alok Industries has been in recent past as it has been taken over by Reliance Industries Promoter Mukesh Ambani. Share price has been increased after acquisition from Rs. 3.80 per share to Rs. 58.50 per share. This share is now trading at  Rs. 20.50 per share. There is so much movement in this share. Lets talk about this company. 

This company is a Mumbai based textile company. This company was founded in Year 1986 by Surendra Jiwrajka. 

Alok Industries has been acquired recently by JM Financial Asset Reconstruction Co. Ltd. and Reliance Industries Ltd. They have given Rs. 5000 crores against loan of Rs. 30000 crores in NCLT process. The main reason behind downfall of the company is due to undue expansion by raising debt.

All this started during period of 2004-2013 when company started expansion by taking loan of Rs. 10000 Crores in field of textiles which includes spinning , weaving , garments units and processing. But companies doesn't pickup as expected and company both domestic and exports declined which leads to company started working in real estate space. Which results into further weakening of balance sheet and which leads to ultimately bankruptcy of company.

Apart from expansions in textile they wanted to do new business i.e. by opening stores under brand name as H&A. They also expanded the same into UK under brand name as Store Twenty one. When company was expanding at full potential than they have approx. 350 retail outlets in India and approx. 220 stores in UK.

Then came the entry of Reliance Industries which is known for turnaround of sick units and turning a junk into gold. Soon after takeover of Alok Industries they started manufacturing PPE kits and Masks in Alok Industries units. Now Share of this company is trading around Rs. 22 per share. But since this company is now taken over by big giant fortune of Alok Industries will turnaround and company will do well in future.

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