Alok Textiles is currently working out the cost structure of the expansion programme proposed to be taken up in 2000.

``Expansion and modernisation has become inevitable in the context of the competitive scenario following abolishment of the quota system in 2005. Domestic demand for fabrics has been increasing and there are not many units which can match global standards. Procurement of fabrics has become the biggest problem for garment exporters,'' said company managing director Dilip Jiwrajka.

Alok Textiles has been receiving bookings worth 300 per cent for nine months and 200 per cent for two months. This is one of the major reasons why it is drawing up an expansion plan, he added.

The costof expansion programme would depend on how much the company can get from the technological upgradation fund (TUF) recently set up for modernisation of textile units, said Jiwrajka. The company has a weaving capacity of 216 lakh metres per annum.

According to him, competition does not mean that Indian brands become a complete no-no. The affinity for foreign brands is likely to diminish once they flood the market. Indian labels will continue to generate interest among the consumers, he said.

Alok Textiles' debt-equity ratio and cash flows have substantially improved following equity infusion from the Mauritius-based Century Direct Fund last year. Alok has privately placed 87.77 lakh equity shares worth Rs 10 each at a premium of Rs 7.50 per share aggregating Rs 15.36 crores to the Century Direct Fund.

Last year, the promoters of the company subscribed to and were allotted 22.50 lakh equity shares of Rs 10 each at a premium of Rs 10 per share aggregating Rs 4.50 crore.

Alok Textiles has posted a netprofit of Rs 14.96 crore on a net sales of Rs 279.60 crore for the year ended March 31, 1999. Earnings per share (EPS) stood at Rs 8.98 as compared with Rs 8.80 during the same period.