Alps Industries - Decorate Your Portfolio

Alps Industries - Plans Rs 50 cr Retail Foray

Ghaziabad-based Alps Industries, leading manufacturer and exporter of home decor furnishing and textiles, is planning to strengthen its presence by foraying into retailing. For retailing, the company is targeting mainly three segments -- branded home furnishing, home decor and fashion accessories -- at an investment of Rs 50 crore. It plans to open retail outlets across the country in phased manner. At least two outlets would be operational in the next two months, while the remaining mega city stores would be opened in two years.

Further, it has lined up an investment outlay of Rs 250 crore for expansion in Punjab and is looking for a suitable location. The company will fund this expansion through a GDR issue of about Rs 125 crore and a combination of term loans and internal accruals.

The company enjoys 35 per cent market share in the soft windows covering segment under the Vista brand. Its fashion accessories brand, Le-pashmina, is also a well-established name distributed across 1,500 outlets across India. Alps' ready-to-use home furnishing items such as bed sheets, bed covers, cushion covers, mats and table linen have gained wide acceptance in Europe and the US, particularly for their eco-friendly appeal developed by proprietary technology of vegetable dyes for textiles. So, it is one of the leading suppliers to MNC retail chains of Europe and North America.

Leading chains like JC Penny, Springs, Walmart and Homestead sell its products. So, the company would definitely benefit more with higher off-take from these international retail houses. Moreover, Alps has recently entered into an agreement with a south-east Asian company for sale of technology pertaining to application of natural dyes to textiles. Under the pact, Alps will provide transfer of technology and training to the personnel of the buyer for this patented application methodology of natural dyes to various textile fibres.

Lastly, PruICICI has acquired 2.76 % stake in Alps on 25th Jan 05 and now it holds 5.98 %. Long Term Investors consider buying the stock in small lots.