Bengaluru-based Gokaldas Exports Ltd. is expanding manufacturing capacity, diversifying its customer base and strengthening vertical integration as it prepares for a gradual recovery in global apparel demand.
The apparel manufacturer and exporter is commissioning new capacity in Bhopal and Karnataka and expanding operations in Kenya, with the additions expected to come on stream in the coming year.
Fabric move strengthens integration
The company is also moving into fabric manufacturing through BRFL Textiles Pvt Ltd (BTPL), a move aimed at securing a critical input, reducing turnaround time and accessing business opportunities that were previously beyond its reach.
Gokaldas Exports has invested in BTPL through optionally convertible debentures and acquired an initial equity stake. Full consolidation is
expected around Q3 FY27, subject to regulatory and NCLT approvals.
Europe gains customer focus
“The contribution from the fabric business will begin from that point rather than the year under review. Alongside this, we advanced capacity additions at Bhopal and in Karnataka and expanded our operations in Kenya, all of which are expected to come on stream in the coming year,” Vice Chairman and Managing Director Sivaramakrishnan Ganapathi said in a letter to shareholders.
The company has also accelerated customer diversification towards Europe by onboarding new customers, with the aim of gradually reducing its regional exposure.
Demand outlook remains measured
“The near-term outlook calls for a measured stance. Demand is likely to stay subdued while tariff and geopolitical uncertainties work their way through, though a weaker rupee lends some support to exporters,” he said.
The company’s priorities include optimising costs and protecting margins, diversifying customers and sourcing geographies, completing the integration of the fabric business and ramping up new manufacturing capacity.
₹228 crore invested in capacity
Gokaldas Exports deployed ₹228 crore in capital expenditure during FY25, of which ₹170 crore was invested in new manufacturing facilities and ₹58 crore in modernisation of existing operations.
The company is in the process of commissioning its second manufacturing unit in Madhya Pradesh at Bhopal, with phased production ramp-up already initiated.
Karnataka and Kenya operations expand
At Kolar in Karnataka, manufacturing operations are being scaled up, with capacity progressively brought into production. The company is also expanding its operations in Kenya as part of its broader manufacturing network.
For FY27, Gokaldas Exports has guided for capital expenditure of about ₹125 crore towards modernisation and capacity expansion as the recently added capacity is absorbed.
Order book provides confidence
“We met the tariff burden through operational rigour. Productivity gains, disciplined cost management and carefully negotiated customer arrangements let us absorb a significant share of the impact without ceding ground,” Ganapathi said.
A steady order book heading into the new financial year gives the company reasonable confidence in continued demand for its manufacturing capabilities, while it expects to benefit over the longer term from the shift in global sourcing towards India and other competitive manufacturing regions.