Indian company Alok Industries acquired Mileta International, a small textile company which manufactures fabrics struggling due to high production cost.
Acquired in September, Mileta International is planning to reduce its production cost by using Indian facilities but at the same time improving its current technical and design expertise.
It also bagged an order of 1.5 million meter of fabric to make table linen, shirting and handkerchiefs.
In spite of this acquisition, Mileta International has to achieve the target of at least 10 million sheet sets or 60 million meters a year. Integration will only help buyers to get both knitted and woven products from Alok.
As the quality of fabrics improves, Alok Industries is planning to raise its selling price from current $1.75 a metre to $3 a metre in the period of next three to four years. This will also lead to increase in total sales of 20-25 percent.
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