Indian textiles firm Alok Industries has raised INR4.25bn (US$94.5m) to fund an ambitious expansion programme.

The textile producer currently has a polyester capacity ceiling of 600t, but is looking to double this with a second plant courtesy of the new capital.

"The funds will be used for expanded capacity - we are expanding our polyester capacity from 600t to 1,200t," Alok Industries chief financial officer Sunil Khandelwal told just-style from India.

"The reason for the increase is there is demand for the business - domestic and export."

The new plant is currently being built but will be ready for the first tranche of a further 200t of production by October. Further ramp-ups of 200t each are also planned for December and March next year.

Some 40% of Alok's business is export-driven with the remainder in India, while Latin America and Eastern Europe are key regions according to Khandelwal, who maintained the increased funding was sufficient to cover the expansion.

"We are not looking to raise any further capital," he said. "This is good enough. Of course new orders are coming, so yes, our hands are full but we are building up new orders selectively."

On the fabric side, Alok Industries supplies such operations as Target.

The current order book for both domestic and export markets is "in the region of US$200-US$250m," added Khandelwal.