Bangalore-based garments firm Go Go International is looking at raising private equity funding in the range of Rs 50 crore - Rs 70 crore to finance its expansion plans over the next two years. Suresh Jain, president, Go Go International, said that the company was in talks with a few private equity players to raise the funds.
Go Go International currently has debt of Rs 50 crore on its books incurred primarily through bank loans and other liabilities.
“Part of the funds raised will be employed to clear some of the debts and liabilities caused primarily by cost overruns as a result of the global financial meltdown. On the operations front, we will double the number of stitching machines we have at our Bangalore and Hassan factories in a year’s time,” Jain said.
The company operates 1,700 stitching machines, of which 800 machines are employed at its master garments factory in Yelahanka on the outskirts of Bangalore.
Started in 1983, Go Go designs, manufactures and exports fabric as well as knitted and woven garments, primarily to the European Union and the US.