Alok Industries plans to enter real estate sector

Alok Industries, textile major, is looking at foraying into the booming real estate sector which is moving higher on the growth curve. The company has put growing focus on the real estate space as it has started shifting its textile operations out of Navi Mumbai to Vapi besides flipping the Rs 1,100 crore building bought from peninsula on dawn mills in central Mumbai.

On relocating the factory to Vapi, the company will convert the 4 acres into a commercial IT park. Alok Industries is also planning to build a hotel in Coorg and Chennai. It is believed that the building that Alok purchased on dawn mills will be sold to a buyer at a premium of at least 20 per cent, which takes Alok industries'' real estate asset valuation to over a billion dollars.Alok''s real estate business is set to overtake the core business of home linen and furnishings, which is valued at about Rs 1,500 crores over the 15-18 months.