- Alok Industries is India’s only large textile manufacturer that runs both cotton and polyester value chains under one roof - from raw material to finished bedsheets, towels, garments and yarn. The company was rescued through a court-led insolvency process and restarted under the control of Reliance Industries Limited, which now holds effective control and provides raw materials, offtake guarantees and financial backing. The recurring approach is vertical integration at world-scale capacity, with a decisive shift in its polyester engine from merchant manufacturing to a stable, fee-based job-work model for Reliance that eliminates raw-material price risk.
Business segments
Four engines built on one integrated manufacturing backbone - a polyester processing engine that runs on a job-work fee, a cotton-yarn engine that feeds the company’s own downstream factories, and two consumer-facing platforms in home textiles and apparel fabric that capture the final margin.
1. Polyester: the stable fee-earner, now insulated from commodity swings
Since March 2024, the polyester division no longer buys raw materials or chases market prices - it processes PTA and MEG supplied free by Reliance and earns a predictable conversion fee.
- Raw materials supplied, not bought - Reliance provides PTA and MEG (petrochemical derivatives linked to crude oil) as free supplies; Alok converts them into polyester chips, POY, FDY, DTY and PSF and books only the processing fee as revenue, removing the margin squeezes that came with the old merchant model.
- One continuous line from melt to yarn - the Silvassa plant runs from continuous polymerization, where PTA and MEG become polyester melt, straight through to finished yarns and staple fibre, so there are no intermediate steps outsourced to third parties.
- Take-or-pay underwrites the plant - Reliance has guaranteed minimum offtake of polyester products for eight years from February 2020, ensuring the plant’s cash flows cover debt servicing even if end-market demand weakens.
- Domestic anchor with a small export tail - about 94% of polyester sales stay in India, with exports making up roughly 6%; around 4-5% of output is consumed internally by Alok’s own fabric divisions.
- Automotive-grade certification - the polyester plant holds IATF 16949:2016 certification from the International Automotive Task Force, qualifying it to supply the automotive supply chain.
2. Spinning: the captive cotton-yarn engine that feeds the group
More than half the cotton yarn this division produces never leaves the company - it is consumed by Alok’s own weaving, knitting, bedding and towel units, letting the group capture margin at the finished-product stage.
- 55-60% captive consumption - the bulk of yarn output is transferred internally to downstream divisions, insulating the spinning business from the margin pressure that standalone spinners face when cotton prices swing.
- The rest sold to domestic and export markets - the balance of production goes to external customers, giving the division a direct read on market pricing while the captive portion runs on internal transfer terms.
- Cotton is a primary raw material, and it is volatile - raw cotton is an agricultural commodity affected by weather, government policy, duties and global demand-supply, so the company maintains an experienced procurement team that sources across multiple supply-chain intermediaries.
- Large-scale infrastructure at Silvassa - the spinning plants are among the larger installations in the Indian industry, built for scale and product-development capability rather than commodity output alone.
3. Home Textiles: the export-led bedding and towel platform
Alok is one of India’s largest home-textiles manufacturers and exporters, shipping bedding and terry towels primarily to the US, with a factory footprint split between Silvassa and Vapi.
- The US is the main market - the United States is the world’s largest consuming centre for home products, and it is the division’s biggest export destination, followed by Europe and Australia.
- Bedding and towels together make up about 55% of company exports - in FY26, bedding contributed roughly ₹420 crore and terry towels roughly ₹291 crore to the top line, with the domestic market accounting for about 26% of home-textile sales.
- Two-site manufacturing - weaving and the major stitching unit for bedding sit at Silvassa, while fabric processing and the entire terry-towel operation run at Vapi, creating a dedicated flow for each product category.
- Certifications unlock retail shelves - the division holds GOTS, OCS, GRS, OEKO-Tex, STeP, HIGG index, BCI, SUPIMA, Cotton USA and ZDHC certifications, plus Walmart’s JQMP authorization that permits self-inspection for wider-width processing and Silvassa made-ups.
- Competing against tariff-advantaged rivals - in the US market, Pakistan, Bangladesh and Vietnam operate at lower effective tariff rates, and Pakistan in particular benefited from a significantly lower tariff differential for most of FY26, though Alok has retained key customers at reduced volumes.
4. Apparel & Fabric: the diversified fabric-and-garment engine serving brands and exporters
This division weaves, knits, embroiders and stitches for a customer base that spans international brands, garment exporters in converter countries like Bangladesh and Vietnam, and India’s domestic retail trade.
- Woven fabric is the anchor product - in FY26, apparel woven fabric contributed roughly ₹694 crore of the division’s roughly ₹1,076 crore total, with knits, garments, embroidery and hemming filling out the mix.
- Sells to the exporters who sell to the brands - a significant portion of domestic sales goes to garment manufacturers and exporters who supply major international labels, making the division sensitive to the health of the broader export ecosystem.
- Modern fibres, not just commodity cotton - the product range includes bamboo blends, 100% Tencel, Tencel-linen blends, cotton-Tencel blends and Modal, and the company uses Reliance’s Recron technologies including Kooltex and Green Gold to move into technical and specialized fabrics.
- Two-plant footprint - weaving, knitting, embroidery and garmenting run at Silvassa; processing plants and one garment unit operate at Vapi.
- Building direct retail relationships - the company has started supplying fabrics and garments to large physical and online retailers, broadening the customer base beyond the traditional exporter channel.
Group structure and partners
Alok Industries is effectively controlled by Reliance Industries Limited, which holds 40.01% of the equity, provides raw materials and offtake guarantees, and manages operations through board nominees - while the company’s subsidiaries outside India are largely non-operational or being sold.
- RIL holds 40.01%, JMFARC Trust holds 34.99% - RIL also owns 40% of JMFARC, giving it effective control, and three RIL nominee directors sit on Alok’s board to supervise operations.
- Take-or-pay and marketing support from RIL - an eight-year offtake agreement guarantees minimum purchases primarily of polyester products, and RIL provides marketing support to sell both polyester and non-polyester goods to third parties, plus letters of comfort for term loans and working capital.
- The polyester business runs on RIL-supplied feedstock - under the job-work model, PTA and MEG are supplied by Reliance as free raw materials, and transactions with RIL for sale, purchase and processing are conducted at market rates or cost-plus margin.
- ₹3,300 crore in preference shares issued to RIL - in January 2024, Alok allotted 3,300 crore 9% Non-Convertible Redeemable Preference Shares to RIL, redeemable within 20 years and carrying a cumulative 9% annual dividend.
- Overseas subsidiaries are largely shells - Alok Worldwide (BVI), Alok International Middle East (Dubai), Alok Singapore and Alok International Inc (USA) are all non-operational; the Czech fabric subsidiary Mileta a.s. was agreed to be sold in December 2025 for EUR 558,825.
- Manufacturing is concentrated at Silvassa and Vapi - spinning, weaving, knitting, embroidery, garmenting and the polyester plant sit at Silvassa; fabric processing and terry-towel manufacturing run at Vapi, with captive solar power at Silvassa and wind power wheeled to Vapi.