Gokaldas to rope in retailers for apparel supply

In talks with Reliance Retail, Bharti.

Country's top apparel exporter Gokaldas Exports Ltd is in talks with Reliance Retail and Bharti to supply apparel for their retail operations. Gokaldas Exports has set up a special division to cater to the domestic retailers.

"Both Reliance Retail and Bharti have evinced interest in sourcing apparel from us. The Aditya Birla Group too is interested in sourcing apparel from us for its retail operations. We have asked them to submit a time-bound 12-month programme to us. We do not mind dedicating separate factories to them," Gokaldas Exports Ltd executive director (Finance) Rajendra J Hinduja told Business Standard.

Hinduja expects the bulk order from such big retailers to be in the region of 1 million to 2 million apparels of all varieties every month.

"We are ready to meet such bulk orders. Significant investments will be made next year to enhance capacity," he added.

Gokaldas Exports operates through 46 factories in South India, predominantly in Karnataka. During 2007-08 fiscal, the firm plans to commission four new garment factories at Hyderabad, Bangalore, Mysore and Tumkur with a combined investment of Rs 70 crore.

"The headcount will cross the 60,000 mark next fiscal (from the present 52,100). These factories will cater to both export and domestic markets," Hinduja pointed out.

The firm earns Rs 50 crore revenue by supplying apparel to the domestic retailers every year.

"With capacity addition, we expect revenues from domestic retail supply division to increase to Rs 200 crore in the next two years," he stated.

At present, the firm supplies apparel to many players like Metro Cash & Carry, Pantaloon Group, Madura Garments (Aditya Birla Nuvo company), Benneton, Shoppers' Stop, Reebok, Nike and Adidas.

According to Hinduja, the retail boom is prompting several retailers to expand business. "We see a growth opportunity in the domestic retail sector on account of the retail revolution," he said.

Gokaldas Exports is expected to cross the Rs 1,000 crore mark this year as against last fiscal's Rs 884 crore. By the end of the third quarter of 2006-07, the firm had registered Rs 762 crore revenue.