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Gokaldas Exports To Invest Rs 350 Crore in BRFL Textiles, Aims Acquisition By June 2025

• By  Textile Excellence
• June 20, 2024

Gokaldas Exports Ltd. to invest in fabric manufacturer BRFL Textiles Pvt. Ltd. (BTPL) by subscribing through optionally convertible debentures (OCDs). In the first tranche, Gokaldas Exports will subscribe to OCDs worth Rs 50 crore, while the remaining OCDs worth up to Rs 300 crore will be subscribed subsequently in multiple tranches. These funds shall be utilised mainly to meet the working capital needs, while smaller portion to be used in capex requirements.

The investment is aimed at exploring a possible merger or acquisition of BRFL Textiles by June 30, 2025 subject to the fulfilment of certain conditions and receipt of regulatory, statutory approvals.

Gokaldas Exports said, “With the strategic investment in BTPL, we intend to stand largely self-reliant in fulfilling our raw material requirements for manufacturing. BTPL comes with excellent infrastructure in terms of machinery and configurations, world-class machinery, and specialisation in linen manufacturing. It is well known in the fabric processing segment and has specialized prints and yarn-dyed fabrics that are synergistic with our internal needs. The infrastructure supports the production of knits, wovens, and all fibre types.”

The company said investment in a fabric processing mill will play an important strategic step for it as it expects this investment to accelerate its growth.

Gokaldas Exports offers one-stop solution for some of the world’s most recognized apparel brands. With an annual turnover of US$ 290 million in FY24, it is one of India’s largest manufacturers and exporters of apparel that reaches 50+ countries. Gokaldas Exports currently has over 30+ production units and more than 30,000+ advanced machines that can produce about 87 million garments annually. Together with the recently acquired entities, Gokaldas Exports has 51,000+ employees who work together to ensure the company’s vision of being a globally reputed apparel manufacturer.

The investment is aimed at exploring a possible merger or acquisition of BRFL Textiles by June 30, 2025 subject to the fulfilment of certain conditions and receipt of regulatory, statutory approvals