Further investment in Alok

Caledonia Investments PLC
23 May 2005



Caledonia Investments plc



$15m further investment in Alok Industries Ltd



Caledonia Investments plc ('Caledonia') is pleased to announce that it will be
investing a further US$15m in Alok Industries Ltd ('Alok'), an Indian listed
textile manufacturing business run and partly owned by the Jiwrajka family.
Caledonia first invested in Alok in July 2004 and this further investment, which
involves participation in Alok's new Foreign Currency Convertible Bond issue,
will bring the total book value of Caledonia's stake to approximately £11.5m.
Conversion of the bonds would increase Caledonia's holding in Alok to
approximately 8.3% of the company on a fully diluted basis.



Alok manufactures apparel cloth, home textiles and polyester yarn for the export
and domestic markets.  Alok is presently undertaking major expansion of its
plants near Mumbai to take advantage of the removal of World Trade Organisation
textile export quotas from the beginning of 2005.



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Caledonia's Chief Executive, Tim Ingram, said:

'Our investment in Alok is part of our plan to participate in the continuing
rapid growth in the Indian economy.  We look forward to a long and close
association with the Jiwrajkas and their management team.'



Alok's Managing Director, Dilip Jiwrajka, said:

'We appreciate Caledonia's long term investment approach and are pleased to
welcome them as major shareholders in our company'.



                                                          23 May 2005






Caledonia Investments plc

Tim Ingram                                                Tel: [phone]
Jonathan Cartwright

College Hill Associates

Tony Friend                                               Tel: [phone]
Richard Pearson




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