Gokaldas Exports: Strategic acquisitions and capacity expansion drive growth

Gokaldas Exports continues to strengthen its position in the global apparel industry with consolidated revenues of Rs 2,409 crores in FY24, up from Rs 2,247 crores in the previous year. The company’s recent investments and strategic acquisitions underscore its commitment to growth and diversification to enhance its manufacturing capacity and market reach.

Gokaldas Exports has launched Phase I of a new sewing plant in Bhopal, Madhya Pradesh, which has a capacity to produce 3 million pieces per annum. Phase II, which will double this capacity, is expected to be completed in the next calendar year. The company is also diversifying into knitwear processing with a new plant in Perundurai, Tamil Nadu, which is currently under commissioning.

Strategic acquisitions

To consolidate its market position and expand its product offering, Gokaldas acquired Atraco and Matrix Clothing Private Limited (MCPL) for a total investment of Rs 934 crores. These acquisitions provide access to high-quality knitwear, new customer bases and affordable manufacturing locations.

Mr. Sivaramakrishnan Ganapathi, Vice President and Managing Director, Gokaldas Exports, highlighted the strategic benefits of the acquisitions, stating, “The recent acquisitions will provide a solid foundation for margin expansion. Atraco and Matrix complement our existing businesses and enhance productivity through geographic diversification, access to new customers and strategic positioning.”

Founded in 1979, Gokaldas Exports has grown into a one-stop solution for some of the world’s most recognizable apparel brands. With an annual turnover of $290 million in FY24, the company is one of the largest apparel manufacturers and exporters in India, supplying products to over 50 countries.

Post acquisition, Gokaldas Exports now operates over 30 manufacturing units with over 30,000 advanced machines that can produce around 87 million garments per year. The company employs over 51,000 people, pursuing its vision of being a globally recognized apparel manufacturer that focuses on innovation and sustainability.

Insight into acquisitions

Gokaldas acquired Matrix Clothing for ₹489 crores, gaining access to manufacturing high-quality knitwear for major brands in Europe, UK and North America. Matrix operates five manufacturing plants and provides geographic diversification and expansion potential at low cost.

Atraco, a leading apparel manufacturer founded in 1986, has a strong market presence and customer relationships in the US and Europe. Headquartered in Dubai, Atraco operates four manufacturing plants in Kenya and one in Ethiopia, producing approximately 40 million garments annually.

Future perspectives

Mr. Ganapathi highlighted that favourable currency conditions, Production Linked Incentive (PLI) programme and Free Trade Agreements (FTAs) with key markets are likely to drive the company’s future growth. The company’s strategic investments and acquisitions position it well to leverage these opportunities.

Gokaldas Exports’ strategic expansions and acquisitions have provided the company with solid growth and enhanced market presence. With a focus on increasing production capacity, diversifying product offerings and capitalizing on favorable market conditions, Gokaldas Exports aims to continue its trajectory as a leading global apparel manufacturer. As the company grows, it remains committed to innovation, sustainability and excellence in meeting the evolving needs of its global clientele.