Alok Industries surges 5% as RIL converts the firm into making PPE amid Covid-19

RIL through Alok plans to make the facility available for exporting PPE in future as well.

Jun 01, 2020 09:06 IST India Infoline News Service

Alok Industries
Investors were bullish on Alok Industries stock price during Monday's trading session, as the Mukesh Ambani-backed Reliance Industries diverted the textile and fabrics maker's business into manufacturing PPE for fighting Coronavirus pandemic. At around 09.27 am, Alok's stock price was trading at an upper circuit of Rs19.50 per piece up by 5% on Sensex.

Meanwhile, post announcement, RIL stock price was trading at Rs1489.90 per piece up by 1.69%.

Sources told PTI that RIL has redeployed Alok Industries' manufacturing facilities in Silvassa for exclusively manufacturing personal protective equipment (PPE) to safeguard doctors, nurses, medical staff and other frontline workers engaged in fighting the COVID-19 pandemic.

Further, Alok has been reportedly scaled up to produce more than 1 lakh PPE kits per day and cost has been slashed to nearly Rs 650 per unit from the about Rs 2,000 apiece imported price.

RIL through Alok plans to make the facility available for exporting PPE in future as well.

It is being known that production at Alok commenced from mid-April and has now constitute close to a fifth of India's daily PPE production capacity.

Earlier in February this year, RIL received the opportunity to acquire 37.7% equity share capital of the debt-laden Alok Industries.

Alok was auctioned under the Insolvency & Bankruptcy Code (IBC) after RBI declared it among defaulters against a consortium of lenders. RIL acquired Alok jointly with JM Financial ARC.

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