Gokaldas Exports lines up Rs 170 cr expansion

Gokaldas Exports will invest Rs 170 crore over 18 months to take its garment capacity close to 40 million pieces a year. At present, the Bangalore-based textile exporter produces 24 million garment pieces a year.

As part of the investment, the company will invest Rs 100 crore to set up a unit in the 400-acre special economic zone (SEZ) near Bangalore. The SEZ will be set up by group firm, Gokaldas Exports Apparel and Textile Park.

"Moreover, we will be investing Rs 70 crore to set up four new manufacturing units over 12 to 18 months. The new facilities will come up in Mysore, Hyderabad, Chennai and another one near Bangalore," said Rajendra Hinduja, executive director.

He was talking on the sidelines of the International Textile and Apparel Congress held recently.

The SEZ unit will have 2,500 employees and will produce 1.5 million pieces a year. The other four units are expected to increase the company's capacity to 36 million units a year.

Keeping the expansion momentum, the exporter is set to be one of the first in the country to cross 40 million pieces in another three years.

For the units in Hyderabad and Chennai, the company is identifying land. Another unit is expected to come up on its own premises near Bangalore.

Market sources said the company also plans to upgrade machinery at its existing units. It will invest about Rs 20 crore for installing material handling systems, conveyors and productivity-enhancing equipment.

Earlier this year, the company got clearance to come up with the Rs 1,500-crore SEZ near Bangalore.

"Almost 50 entrepreneurs will invest in the SEZ that will give employment to 50,000 people. Within two years, it will generate a turnover of Rs 2,500 crore," said Hinduja.