'Gokaldas to have a good quarter'
Gokaldas exports may have overcome rupee blues and be willing to aggressively expand following its buyout by private equity Blackstone.
By Sanjeev Choudhary, TNN |
NEW DELHI: In an indication that India’s biggest garment exporter Gokaldas exports may have overcome rupee blues and be willing to aggressively expand following its buyout by private equity Blackstone, the PE’s India chief said the current quarter was going to be “terrific” for the garment company.
“This quarter is going to be terrific for Gokaldas,” Blacktone India chairman Akhil Gupta told ET. Gokaldas, the first garment company to have been bought over by a private equity player, had reported a decline in profit as well as revenue for the quarter ended September 30 this year. Net profit for the quarter stood at Rs 11 crore as against 21 crore the previous year, while total income was Rs 254 crore compared with Rs 282 crore for the same quarter last year.
Gokaldas plans to significantly up its garment-making capacity, said Mr Gupta, adding that the company “may acquire some” domestic garment makers.
At present, Gokaldas has 46 garment-making factories, mostly around Bangalore, with a capacity to produce around 2 million pieces of garment annually. The company produces a range of garments including shirts, trousers, knitwear and denim. The company is setting up a new manufacturing facility in Hyderabad, which would be operational in February next year. The upcoming facility will be able to manufacture 12 lakh trousers per annum.
Mr Gupta seems undettered by the rupee appreciation, which is making it very difficult for most garment exporters to keep their margin. “Gokaldas will focus completely on exports. We are not looking at domestic market,” said Mr Gupta. Rising rupee, a booming domestic market driven by increased consumer spend and arrival of big retail have prompted many exporters to shift focus from export to domestic market.
“We are not worried about rupee appreciation. We can manage a few cents here or a few cents there. But we know there is a lot of business in export market. Gokaldas is a big player and it can manage its margins,” he said, adding that India alone could emerge as the viable alternative to China in the garment export market.
On market speculations that Blackstone was looking at investing in more textile companies, Mr Gupta said: “We invested in Gokaldas because we could have invested only in Gokaldas. We have no plans to invest in any other textile company.”
“This quarter is going to be terrific for Gokaldas,” Blacktone India chairman Akhil Gupta told ET. Gokaldas, the first garment company to have been bought over by a private equity player, had reported a decline in profit as well as revenue for the quarter ended September 30 this year. Net profit for the quarter stood at Rs 11 crore as against 21 crore the previous year, while total income was Rs 254 crore compared with Rs 282 crore for the same quarter last year.
Gokaldas plans to significantly up its garment-making capacity, said Mr Gupta, adding that the company “may acquire some” domestic garment makers.
At present, Gokaldas has 46 garment-making factories, mostly around Bangalore, with a capacity to produce around 2 million pieces of garment annually. The company produces a range of garments including shirts, trousers, knitwear and denim. The company is setting up a new manufacturing facility in Hyderabad, which would be operational in February next year. The upcoming facility will be able to manufacture 12 lakh trousers per annum.
Mr Gupta seems undettered by the rupee appreciation, which is making it very difficult for most garment exporters to keep their margin. “Gokaldas will focus completely on exports. We are not looking at domestic market,” said Mr Gupta. Rising rupee, a booming domestic market driven by increased consumer spend and arrival of big retail have prompted many exporters to shift focus from export to domestic market.
“We are not worried about rupee appreciation. We can manage a few cents here or a few cents there. But we know there is a lot of business in export market. Gokaldas is a big player and it can manage its margins,” he said, adding that India alone could emerge as the viable alternative to China in the garment export market.
ADVERTISEMENT
On market speculations that Blackstone was looking at investing in more textile companies, Mr Gupta said: “We invested in Gokaldas because we could have invested only in Gokaldas. We have no plans to invest in any other textile company.”
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
