1

PERFORMANCE HIGHLIGHTS

FOR THE QUARTER ENDED 30 SEPT 2010

Net Sales of ` 1,451.50 crore

An increase of 48.90% over quarter ended 30 Sept 2009 (` 974.79 crore)

Exports worth ` 605.53 crore

Growth of 89.96% over quarter ended 30 Sept 2009 (` 318.77 crore)

EBIDTA of ` 416.97 crore

Growth of 42.95% over quarter ended 30 Sept 2009 (` 291.69 crore)

Margin of 28.73% of sales (29.92% during quarter ended 30 Sept 2009)

PAT of ` 79.80 crore

An increase of 40.01% over quarter ended 30 Sept 2009 (` 57.00 crore)

Margin of 5.50% of sales (5.85% during the quarter ended 30 Sept 2009)

FOR THE SIX MONTHS ENDED 30 SEPT 2010

Net Sales of ` 2,550.48 crore

An increase of 44.83% over six months ended 30 Sept 2009 (` 1,761.07 crore)

Exports worth ` 1041.38 crore

Growth of 78.43% over six months ended 30 Sept 2009 (` 583.63 crore)

EBIDTA of ` 743.83 crore

Growth of 46.67% over six months ended 30 Sept 2009 (` 507.13 crore)

Margin of 29.16% of sales (28.80% during six months ended 30 Sept 2009)

PAT of ` 126.32 crore

An increase of 41.91% over six months ended 30 Sept 2009 (` 89.01 crore)

Margin of 4.95% of sales (5.05% during the six months ended 30 Sept 2009)

2

Rs. Crore

PARTICULARS

2 QUARTER ENDED SIX MONTHS ENDED YEAR ENDED30.09.2010[3 months]

(Provisional)

30.09.2009[3 months]

(Provisional)

30.09.2010[6 months]

(Provisional)

30.09.2009[6 months]

(Provisional)

31.03.2010[12 months]

(Audited)1. Net Sales / Income from operations 1,451.50 974.79 2,550.47 1,761.07 4,311.172. Other Income 1.18 0.79 1.23 1.22 64.023. Total Income 1,452.68 975.58 2,551.70 1,762.29 4,375.194. Total Expenditure 1,035.71 683.89 1,807.88 1,255.16 3,102.71

a] (Increase) / Decrease in Stock in trade and work in progress

(104.85) 63.32 (209.19) 93.93 (333.82)

b] Consumption of raw material 861.87 385.12 1,479.23 735.97 2,338.81c] Employee Cost 45.18 33.25 86.78 63.77 153.73d] Other Expenditure 233.51 202.20 451.06 361.49 943.99

416.97 291.69 743.82 507.13 1,272.485. Depreciation 120.07 84.61 219.39 163.00 362.616. Interest 178.20 122.17 335.28 210.73 535.087. 118.70 84.91 189.15 133.40 374.798. Provision for Tax – Current 23.33 14.45 37.70 22.68 62.70

– MAT Credit 0.00 0.00 0.00 0.00 (34.26)– Deferred 15.57 13.18 25.14 21.22 99.01

0.00 0.28 0.00 0.49 0.0079.80 57.00 126.31 89.01 247.34

9. Extra ordinary items (Net of tax) 0.00 0.00 0.00 0.00 0.0010. 79.80 57.00 126.31 89.01 247.3411. Paid up Equity Share Capital

(Face Value Rs.10/- per equity Shares)787.79 605.08 787.79 605.08 787.79

12. Reserve excluding revaluation reserves (as perBalance Sheet of previous accounting year)

1,928.40 1,410.39 1,928.40 1,410.39 1,928.40

13. Earning Per Share (Rs.)Basic 1.01* 1.41* 1.60* 1.92* 4.57Diluted 1.01* 1.40* 1.60* 1.92* 4.57

14. Aggregate of public share holdings- Number of Shares 56,44,21,927 38,27,91,679 56,44,21,927 38,27,91,679 56,44,21,927- Percentage of Shareholding 71.65% 63.20% 71.65% 63.20% 71.65%

15. Promoter & Promoter Group Shareholding a) Pledged/Encumbered

- Number of Shares 13,02,22,838 20,99,95,162 13,02,22,838 20,99,95,162 20,30,65,454- Percentage of Shares (as a % of the

total shareholding of promoter and promoter group)

58.30% 94.21% 58.30% 94.21% 90.91%

- Percentage of Shares (as a % of the total share capital of the Company)

16.53% 34.67% 16.53% 34.67% 25.78%

b) Non- encumbered- Number of Shares 9,31,53,513 1,29,11,189 9,31,53,513 1,29,11,189 2,03,10,897- Percentage of Shares (as a % of the

total shareholding of promoter and promoter group

41.70% 5.79% 41.70% 5.79% 9.09%

- Percentage of Shares (as a % of the total share capital of the Company)

11.82% 2.13% 11.82% 2.13% 2.58%

* - Not annualised

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 SEP 2010

3

NOTES:

1. The statement of Assets and Liabilities as at 30 September 2010 is as under:(Rs. Crore)

PARTICULARSAS AT

30.09.2010 30.09.2009 31.03.2010(Audited)

Shareholders' Funds

(a) Capital 787.79 605.08 787.79

(b) Reserves and Surplus 2,054.70 1,550.46 1,928.40

Loan Funds 8,789.98 6,910.49 8,509.68

Deferred Tax Liability (net) 432.12 329.19 406.98

Total 12,064.59 9,395.22 11,632.85

Fixed Assets 7,511.98 6,420.80 7,145.11

Investments 418.91 297.86 229.69

Foreign Currency Translation Monetory Account - 6.82 0.17

Current Assets, Loans and Advances

(a) Inventories 1,774.90 1,060.22 1,474.41

(b) Sundry Debtors 1,509.77 1,049.54 1,101.23

(c) Cash and Bank Balances 665.65 556.98 1,390.29

(d) Loans and Advances 919.46 403.23 835.95

Less: Current Liabilities and Provisions

(a) Current Liabilities (672.01) (382.41) (488.93)

(b) Provisions (64.07) (17.82) (55.07)

Total 12,064.59 9,395.22 11,632.85

2. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at their meeting held on 28 October 2010. The same are subject to Limited Review by the statutory auditors of the Company.

3. Total Sales have increased by 48.9% over the corresponding quarter of the previous year to reach Rs. 1,451.50 crore. Export Sales for the quarter was Rs. 605.53 crore, a growth of 89.96% over the corresponding quarter of the previous year (Rs. 318.77 crore).

4. No. of investor complaints at the beginning of the quarter were NIL, received during the quarter were 9, disposed off during the quarter were 9 and lying unsolved at the end of the quarter were NIL.

5. The entire operations of the Company relate to only one segment viz., textiles. The risk and returns are generally perceived by the management to be the same for all units and thus treated as one segment.

the current quarter/period.

By order of the BoardFor ALOK INDUSTRIES LIMITED

Sd/-DILIP B. JIWRAJKA

Managing Director

Place : Mumbai

Date : 28 October 2010

4

KEY DEVELOPMENTS IN THE QUARTER

The `H&A’ chain of stores opened an additional 25 shops during the quarter; taking the total number to 251; target is to have 400 stores operational by March 2011

‘Store Twenty One’, the UK retail chain of value-format stores seems well on way to register a record growth this year with sales for Q2 2010-11 at £ 29.17 mln as compared to £ 27.53 mln in the corresponding quarter of the previous period, a growth of 5.97%

Credit Analysis & Research Limited continues to assign a ‘CARE A+’ [Single A Plus] rating to the Company’s proposed long term borrowing program through non-convertible debentures (NCDs) and a ‘PR1+’ [PR One Plus] rating to the proposed Commercial Paper / Short Term Debt issues

The Company improved its rank from 86 in 2009 to 68 in 2010 in Business World’s rating of the top 500 companies in India in terms of assets and income. In the ET500 rating by Economics time, the Company’s ranked improved from 173 in 2009 to 145 in 2010

During the quarter, the Company received the following trophies from TEXPROCIL for its performance in 2009-10

o Gold Trophy for highest exports of bleached/dyed/yarn dyed/printed fabrics in the fabrics category

o Gold Trophy for highest exports of bed linen/bed sheets/quilts in the Made-ups category

o Silver Trophy for highest global exports category

5

KEY FINANCIALS AT A GLANCE

Rs. CroreQUARTER ENDED

30 SEPT 2010QUARTER ENDED

30 SEPT 2009 % CHANGE

Rs. Crore % To Sales Rs. Crore % To SalesDomestic Sales 845.97 656.02 28.96%

Export Sales 605.53 318.77 89.96%

Net Sales 1,451.50 974.79 48.90%

Other Income 1.18 0.79 49.37%

TOTAL INCOME 1,452.68 975.58 48.90%Material Costs 757.02 52.15% 448.44 46.00% 68.81%

People Costs 45.18 3.11% 33.25 3.41% 35.88%

Other Expenses 233.51 16.09% 202.20 20.74% 15.48%

OPERATING EBIDTA 416.97 28.73% 291.69 29.92% 42.95%Depreciation 120.07 8.27% 84.61 8.68% 41.91%

OPERATING EBIT 296.90 20.45% 207.08 21.24% 43.38%Interest & Finance Costs 178.20 12.28% 122.17 12.53% 45.86%

OPERATING PBT 118.70 8.18% 84.91 8.71% 39.80%Less: Provision for Taxes

2.68% 2.86% 39.38%

Current Tax 23.33 14.45

Deferred Tax 15.57 13.18

0.00 0.28

MAT Credit Entitlement 0.00 0.00

Prior Period Adjustment of Tax

OPERATING PAT 79.80 5.50% 57.00 5.85% 40.01%

6

Rs. CroreSIX MONTHS ENDED

30 SEPT 2010SIX MONTHS ENDED

30 SEPT 2009 % ChangeRs. Crore % to Sales Rs. Crore % to Sales

Domestic Sales 1,509.10 1,177.44 28.17%

Export Sales 1,041.38 583.63 78.43%

Net Sales 2,550.48 1,761.07 44.83%

Other Income 1.23 1.22 0.82%

TOTAL INCOME 2,551.71 1,762.29 44.79%Material Costs 1,270.04 49.80% 829.90 47.12% 53.04%

People Costs 86.78 3.40% 63.77 3.62% 36.08%

Other Expenses 451.06 17.69% 361.49 20.53% 24.78%

OPERATING EBIDTA 743.83 29.16% 507.13 28.80% 46.67%Depreciation 219.39 8.60% 163.00 9.26% 34.60%

OPERATING EBIT 524.44 20.56% 344.13 19.54% 52.40%Interest & Finance Costs 335.28 13.15% 210.73 11.97% 59.10%

OPERATING PBT 189.16 7.42% 133.40 7.57% 41.80%Less: Provision for Taxes

2.46% 2.52% 41.56%

Current Tax 37.70 22.68

Deferred Tax 25.14 21.22

0.00 0.49

MAT Credit Entitlement 0.00 0.00

Prior Period Adjustment of Tax

OPERATING PAT 126.32 4.95% 89.01 5.05% 41.91%

7

FINANCIALS AT A GLANCE

DIVISIONAL PERFORMANCE FOR THE QUARTERRs. Crore

PARTICULARS

QUARTER ENDED 30 SEP 2010 QUARTER ENDED 30 SEP 2009

%CHANGE

LOC

AL

EXPO

RT

TOTA

L

% T

O

TOTA

L SA

LES

LOC

AL

EXPO

RT

TOTA

L

% T

O

TOTA

L SA

LES

Cotton yarn 39.72 70.08 109.80 7.56% 60.77 4.74 65.51 6.72% 67.60%

Apparel Fabric

Woven 552.38 57.76 610.14 42.04% 317.47 31.31 348.78 35.78% 74.94%

Knitting 32.09 24.73 56.82 3.91% 13.65 26.77 40.42 4.15% 40.57%

Total Apparel Fabric 584.47 82.49 666.96 45.95% 331.12 58.08 389.20 39.93% 71.37%

Home Textiles 11.60 266.48 278.08 19.16% 2.75 168.99 171.74 17.62% 61.92%

Garments 7.87 56.30 64.17 4.42% 3.03 51.16 54.19 5.56% 18.42%

Polyester Yarn 202.31 130.18 332.49 22.91% 258.35 35.80 294.15 30.17% 13.03%

TOTAL 845.97 605.53 1,451.50 100.00% 656.02 318.77 974.79 100.00% 48.90%

DIVISIONAL PERFORMANCE FOR THE SIX MONTHSRs. Crore

PARTICULARS

SIX MONTHS ENDED 30 SEP 2010 SIX MONTHS ENDED 30 SEP 2009

%CHANGE

LOC

AL

EXPO

RT

TOTA

L

% T

O T

OTA

L SA

LES

LOC

AL

EXPO

RT

TOTA

L

% T

O T

OTA

L SA

LES

Cotton Yarn 58.79 100.60 159.39 6.25% 80.17 30.49 110.66 6.28% 44.04%

Apparel Fabric

Woven 949.40 99.50 1,048.89 41.13% 607.47 81.40 688.87 39.12% 52.26%

Knitting 55.37 46.32 101.69 3.99% 24.12 43.86 67.98 3.86% 49.59%

Total Apparel Fabric 1,004.77 145.82 1,150.59 45.12% 631.59 125.26 756.85 42.98% 52.02%

Home Textiles 23.10 436.64 459.74 18.03% 5.33 306.76 312.09 17.72% 47.31%

Garments 9.68 85.67 95.35 3.73% 4.69 68.29 72.98 4.15% 30.66%

Polyester Yarn 412.75 272.65 685.41 26.87% 455.66 52.83 508.49 28.88% 34.79%

TOTAL 1,509.10 1,041.38 2,550.48 100.00% 1,177.44 583.63 1,761.07 100.00% 44.83%

8

Rs. Crore

PARTICULARS 3 MONTHS ENDED30 SEPT 2010

3 MONTHS ENDED30 SEPT2009

Net Sales 1,451.50 974.79416.97 291.69

Depreciation 120.07 84.61Misc. Exp. W/Off 0.00 0.00Operating PBIT 296.90 207.08Interest 178.20 122.17Operating PBT 118.70 84.91Operating PAT 79.80 57.00

199.87 141.61Dividend 0.00 0.00Operating Net Cash Accruals 199.87 141.61

Rs. Crore

PARTICULARS 6 MONTHS ENDED30 SEPT 2010

6 MONTHS ENDED30 SEPT 2009

YEAR ENDED31 MAR 2010

Net Sales 2,550.48 1,761.07 4,311.17743.83 507.13 1,272.48

Depreciation 219.39 163.00 362.61Misc. Exp. W/Off 0.00 0.00 0.00Operating PBIT 524.44 344.13 909.87Interest 335.28 210.73 535.08Operating PBT 189.16 133.40 374.79Operating PAT 126.32 89.01 247.34

345.71 252.01 609.95Dividend 0.00 0.00 17.28Operating Net Cash Accruals 345.71 252.01 592.67

SUMMARY BALANCE SHEETRs. Crore

PARTICULARS AS ON30 SEPT 2010

YEAR ENDED31 MAR 2010

YEAR ENDED31 MAR 2009

Gross Fixed Assets 8,801.24 8,215.61 6,692.71Net Fixed Assets 7,511.97 7,145.11 5,983.87Current Assets 4,869.78 4,801.88 2,685.93Investments 418.91 229.69 478.57Foreign Currency Money Transalation A/C 0.00 0.17 11.20Total Assets 12,800.66 12,176.85 9,159.57Equity Share Capital 787.79 787.79 196.97Reserve & Surplus 2,054.70 1,928.39 1,410.39Application Money / Warrants/ FCD 0.00 0.00 147.70Tangible Net Worth 2,842.49 2,716.19 1,755.06Deferred Tax Liability 432.12 406.98 307.97Total Borrowings 8,789.98 8,509.68 6,596.35Current Liabilities 736.08 544.00 500.19Total Liabilities 12,800.66 12,176.85 9,159.57

FINANCIALS POSITION

9

SUMMARY CASH FLOWRs. Crore

PARTICULARS HALF YEAR ENDED 30 SEPT 2010

HALF YEAR ENDED 30 SEPT 2009

Cash Flow From Operating Activities

159.98 264.92

Cash Flow From Investing Activities

(761.37) (415.73)

Cash Flow From Financing Activities

(125.44) 360.11

Net Cash Flow (726.84) 209.30

Cash and Cash Equivalents

At the Beginning of the Period 830.60 277.57

At the End of the Period 103.76 486.87

(726.84) 209.30

KEY RATIOSRs. Crore

PARTICULARS

AS ON

30 SEPT 2010 31 MAR 2010 31 MAR 2009

Operating EBIDTA / Net Sales (%) 29.16% 29.52% 27.63%

Operating PBT / Net Sales (%) 7.42% 8.69% 9.57%

Operating PAT / Net Sales (%) 4.95% 5.74% 6.33%

Return On Net Worth (%) 3.86% 7.92% 9.13%

Return On Capital Employed (%) 10.64% 9.52% 8.20%

Balance Sheet Ratios

Long Term Debt / Equity (Cash Netted Out) 1.81 1.62 2.31

Total Debt / Equity (Cash Netted Out) 2.48 2.28 3.03

Current Ratio 1.65 1.83 1.36

EBIDTA / Interest 2.22 2.38 2.7

Net Fixed Assets / Secured Loans 1.58 1.47 1.4

Debtors Turnover – Days 108 93 108

Inventories Turnover – Days 127 125 116

10

Rs. Crore

PARTICULARSAS ON

30 SEPT 2010 31 MAR 2010 31 MAR 2009

Equity Capital 787.79 787.79 196.97

Share Application Money / Share Warrants 0.00 0.00 147.70

Securities Premium Reserve 880.39 880.39 596.96

General Reserve 249.98 249.99 229.99

P&L Account 307.22 180.91 276.63

Others 617.11 617.11 306.81

Tangible Net Worth 2,842.49 2,716.19 1,755.06

Rs. Crore

PARTICULARSAS ON

30 SEPT 2010 31 MAR 2010 31 MAR 2009

Preference Share Capital

Secured Loans 6,421.95 6,056.69 4,948.43

FCCBs 0.00 107.21 121.01

Unsecured Loans 155.10 272.81 51.09

Total Long Term Borrowings (A) 6,577.05 6,436.71 5,120.53

Secured Loans 1,178.51 1,186.19 608.64

Unsecured Loans 45.00 43.00 168.02

Working Capital Borrowings 989.42 843.78 699.16

Total Short Term Borrowings (B) 2,212.93 2,072.97 1,475.82

Total Borrowings (A+B) 8,789.98 8,509.68 6,596.35

Less: Cash & Bank Balances (665.65) (1,390.29) (344.95)

Net Borrowings 8,124.33 7,119.39 6,251.40

FINANCIAL POSITION

11

FIXED ASSETSRs. Crore

PARTICULARSAS ON

30 SEPT 2010 31 MAR 2010 31 MAR 2009Fixed Assets 7,448.64 7,276.36 4,534.44

Capital Work In Progress 1,352.60 939.25 2,158.27

Gross Fixed Assets 8,801.24 8,215.61 6,692.71 Less: Depreciation (1,289.27) (1,070.50) (708.85)

Net Fixed Assets 7,511.97 7,145.11 5,983.86

NET CURRENT ASSETSRs. Crore

PARTICULARSAS ON

30 SEPT 2010 31 MAR 2010 31 MAR 2009Inventories 1,774.90 1,474.41 943.84

Debtors 1,509.77 1,101.23 884.19

Cash & Bank Balances 665.65 1,390.29 344.95

Loans & Advances 919.46 835.95 512.95

Total Current Assets 4,869.78 4,801.88 2,685.92 Sundry Creditors 616.88 379.91 367.32

Other Current Liabilities 55.13 109.02 104.08

Provisions 64.07 55.07 28.79

Total Current Liabilities 736.08 544.00 500.19 Net Current Assets 4,133.71 4,257.89 2,185.73

CAPACITIES

Units Capacities As on Date Additions Capacities Post

ExpansionSPINNING Tons 44,980 11,270 56,250

(Spindles) (300,096) (1,11,744) (4,11,840)

Tons 13520 6,690 20,210

(Rotors) (3,792) (1,632) (5,424)

HOME TEXTILESProcessing Mn. Mtrs 82.50 - 82.50

Weaving Mn. Mtrs 68.00 - 68.00

Terry Towels Tons 6,700 6,700 13,400

APPAREL FABRICSProcessing Woven Mn. Mtrs 105.00 16.80 121.80

Weaving Mn. Mtrs 93.00 - 93.00

Knits Tons 18,200 - 18,200

GARMENTS Mn. Pcs. 22.00 - 22.00

POLYESTER YARN Tons 114,000 28,000 142,000

(Machines) (92) (24) (116)

FDY Tons 65,700 - 65,700

POY Tons 200,000 200,000 400,000

FINANCIAL ANALYSIS

12

SHARE PRICE AND VOLUMES

MonthBSE (In Rs. per share) NSE (In Rs. Per share)

High Low Volume High Low Volume

Apr-10 23.30 20.00 40,914,824 23.25 20.00 79,013,036

May-10 22.00 17.75 54,363,483 21.60 17.80 53,906,941

Jun-10 22.00 17.75 28,690,425 21.95 17.80 70,116,113

Jul-10 21.00 19.85 21,191,799 21.00 19.80 54,540,009

Aug-10 21.40 18.60 38,777,416 21.40 18.60 86,266,477

Sep-10 22.65 18.90 47,688,974 24.30 18.90 98,883,845

SHARE PERFORMANCE VIS-À-VIS STOCK MARKET INDICES

EQUITY INFORMATION

78,77,98,278.00

Closing Price as on 30 Sept 2010 Rs. 21.15

3-Month High Low High Rs.22.65

Low Rs.18.60

Market Capitalisation as on 30 Sept 2010 16,66.19 crore

SHAREHOLDING PATTERN

SHAREHOLDER ENTITIES QUARTER ENDED 30 SEP 2010 QUARTER ENDED 30 JUN 2010

Promoters 28.35% 28.35%

Banks, Mutual Funds And FIs 21.45% 26.12%

FIIs, NRIs And OCB 20.38% 11.41%

Other Corporate Bodies and Public 29.82% 34.12%

TOTAL 100.00% 100.00%

58.30% of the promoters’ holding have been pledged with FIIs, MFs and other lenders as part of loan conditions. This represents a sum total of 13,02,22,838

CAPITAL INFORMATION

13

List of Shareholders (holding more than 1% of the total shares) as on 30 september 2010

Sr. No. Name of Share Holder No. Of Shares % of holding

1 Promoters 223376351 28.35%

2 Caledonia Investments 97110068 12.33%

3 Life Insurance Corporation Of India 26964136 3.42%

4 Axis Bank Ltd 21440823 2.72%

5 IFCI Limited 21440823 2.72%

6 State Bank of India 21440823 2.72%

7 Sloane Robinson LLP 15821592 2.01%

8 CLSA (Mauritius) Ltd 12872520 1.63%

9 IL&FS Trust Co. Ltd 12602457 1.60%

10 IDBI Bank Ltd 10790661 1.37%

11 The Jammu & Kashmir Bank Ltd 10720412 1.36%

12 Bank of Baroda 8576329 1.09%

12 Punjab National Bank 8576329 1.09%

13 Syndicate Bank 8576329 1.09%

14 Indus Capital Advisors (UK) LLP 8322616 1.06%

Total Top Share holders 508632269 64.56%

Other Share holders 279166009 35.44%

787798278 100.00

CAPITAL INFORMATION

14

THE GLOBAL ECONOMY

than in the July 2010 World Economic Outlook (WEO) Update. World industrial production reached growth rates of about 15 percent, and global trade recovered at rates over 40 percent during this period

boost household incomes and consumption increased domestic demand growth to close to 13 percent in 2009, contributing to a large decline in the current account surplus. The recovery is now well established, and a transition from public stimulus to private-sector-led growth is under way. The region is projected to grow by about 7.9 percent in 2010 and 6.7 percent in 2011

Latin America has also recovered strongly, with real GDP growth at about 7 percent. The recovery is being led by Brazil, where real GDP growth has been running close to 10 percent since the third quarter of 2009

The United States is close to pre-crisis levels of output but far below pre-crisis trends, and activity slowed noticeably in the second quarter of 2010. Consumption has been growing since the third quarter of 2009, but at low rates considering the depth of the retrenchment. At the same time, investment in business equipment and software has been rising strongly lately,

Japan and the euro area are still appreciably below pre-crisis levels of output and remain dependent on foreign demand. In

dependence on bank credit is restraining demand, as banks continue to be unusually cautious in lending. However, the

investment is staging a modest comeback.

Source: IMF

INDIA

in 2010

Industrial output continues to grow at a healthy rate of over 5% and domestic demand is robust

policies, which will be balanced with the growth momentum.

ECONOMIC OVERVIEW

15

THE TEXTILE INDUSTRYThe Indian textile industry (domestic + exports) is expected to grow from the current Rs 3,27,000 crores (US$ 70 Bn) to Rs. 10,32,000 crores (US$ 220 Bn) by 2020. The Indian domestic Textile and Apparel market size in 2009 was Rs 2,18,570 crores (US$ 47 Bn) and is expected to grow @ 11% CAGR to reach Rs 6,56,000 crores (US$ 140 Bn) by 2020

Domestic Apparel retail market was worth Rs 1,54,000 crores (US$33 Bn) in 2009 and is expected to reach Rs 4,70,000 crores (US$ 100 Bn) by 2020.

Men’s wear has the majority share of Apparel market currently (43%). However, women’s wear is growing at a higher rate of 12%compared to men’s (9%), boys’ wear (10%) and girls’ wear (11%). Due to high growth, women’s wear share is expected to reach 43% in 2020 from the current 37% share. Home Textile market is estimated at Rs 15,570 crores (US$ 3.5 Bn) in 2009 and expected to reach Rs 40,000 crores (US$ 9 Bn) by 2020 growing @ 9% CAGR. Technical Textiles market is estimated at Rs 49,000 crores (US$ 10.5 Bn) in 2009 and expected to reach Rs 1,46,000 crores (US$ 31Bn) by 2020 growing @ 10% CAGR.

The main drivers of domestic growth are increasing population, increasing income levels, rapid urbanization, improving demographics, increased organized players and increasing penetration of retailers into smaller cities.

Global Textile and Apparel trade is recovering after a slump during the economic recession in 2008-09, and is expected to reach US$ 1 Trillion by 2020 from the current US$ 510 Bn. The growth in trade is driven by increased outsourcing of western / developed countries towards lower cost countries in Asia.

Most developed countries will see continued decline of their textile and apparel industry and create fresh opportunity of up to US$ 140 Billion for exports for developing countries by 2020. In addition, an opportunity of approx US$ 360-370 Billion is likely to be created due to rise in demand. Hence an additional market opportunity of ~US$ 500 Billion is likely to be created by 2020

India’s exports have also recovered in 2009-10 following increased global demand and is currently worth Rs 1,10,450 crores (US$ 23.5 Bn). India has the potential to increase its export share in world trade from the current 4.5% to 8% and reach US$ 80 Bn by 2020. The high growth of Indian exports is possible due to increased sourcing shift from developed countries to Asia and India’s strengths as a suitable alternative to China for global buyers.

of Returns on Capital Employed and EBITDA. Garmenting & Technical Textiles are the most attractive segments within the Apparel value chain in terms of ROA and EBITDA.

Investments to the tune of Rs 3,20,000 crores (US$ 68 Bn) across the Textile supply chain will be required by 2020 to tap the potential market created due to growth of the industry. Investment required in garment sector by 2020 is to the tune of US$ 14 Bn and for processing is US$ 19 Bn.

Source: WTO, Technopak

16

PRESS RELEASE

Alok Industries Limited

For the Quarter:Net Sales up by 48.90% at Rs.1451.50 crore; Operating EBIDTA increased by 42.95% to Rs. 416.97 croreOperating PAT up by 40.01% at Rs. 79.80 crore

Net sales for the six months was at Rs. 2550.48 crore, up by 44.83%

Operating PAT at Rs. 126.32 crore, registering a growth of 41.91%

Mumbai, 28 October 2010:

Alok Industries Limited, one of the leading integrated textile companies in India, today reported a net sales of Rs. 1451.50

registered a growth of 48.90%. Export sales for the quarter ended 30 September, 2010 stood at Rs. 605.53 crore, as against

Net Sales for six months ended 30 September, 2010 was at Rs. 2550.48 crore, an increase of 44.83% as compared to

Commenting on the results, Mr. Dilip B. Jiwrajka, Managing Director, Alok Industries Limited, said, “Our current quarter

is now surely on the threshold of its brightest era. We are witnessing buoyancy in the trade after a long time and this appears to be a sustainable development. We are fully geared in terms of capacity, technology, product development and human capital to tap the emerging opportunities in this exciting scenario, both on the cotton and polyester fronts.”

About Alok Industries Limited:

(BSE Code: 521070) (NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO) (Bloomberg Code: ALOK@IN)

Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textiles solutions provider in India. A

mn meters of sheeting fabric and 6700 tons of terry towels for its home textiles business, 105.00 mn meters of apparel width woven fabrics, 18200 tons per annum of knitted fabrics and 22 million pieces per annum of garments. With the commencement of spinning of cotton yarn (58500 tons per annum), Alok has achieved complete integration. The company also has a strong presence in the polyester segment with a capacity of 1,14,000 tons per annum of polyester textured yarn supplemented by 2,00,000 tons per annum of POY. The company has a blue chip international customer base comprising of world renowned retailers, importers and brands.

For More Information Please Contact:

Mr. Sunil O. KhandelwalChief Financial OfficerTel: 022 24996241Email: sunil@alokind.com

Donica Trivedi/Ankur ParikhAdfactors PRTel: +91-22-22813565Mob :9820093908donica.trivedi@adfactorspr.com