Alok Industries Ltd, an Indian supplier of sportswear to Wal-Mart Stores Inc and Gap Inc, is planning to dispose of its real estate investments to reduce debt and raise money for working capital needs. Alok Industries, India’ second-largest apparel and textile manufacturer by market value, had spent about 15 billion rupees ($317 million) since October 2006 on four real-estate projects in Mumbai, chief financial officer Sunil Khandelwal, said. “The projects in which we invested are either at a stage of completion or at a point at which we can cash in,” Khandelwal said. “The investments back then were not done with the intention to get into realty business but to capitalise on the opportunity we saw then.” The sale of the assets may help the company pay part of its 85 billion rupees debt set to cost as much as 5.75 billion rupees in interest payments in the year ending March 31, according to Khandelwal. The timing of the sale has not been decided, he added.
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Alok Industries to Sell off its Real Estate Projects
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