to double capacity; raises Rs. 70 cr. from market
Bangalore-based export house Gokaldas Exports Limited has raised Rs. 70 crore via qualified institutional placement (QIP).
The company closed its share sale with institutional investors, such as HSF Mauritius and L&T Mutual Fund owning stock in the company. According to Siva Ganapathi, MD of the company, the organisation plans to use a portion of the fund to set up new factories, mainly in low-cost locations as it is expecting to almost double the capacity in the next three to four years. A part of the fund would also be used as working capital. The company is in the process of strengthening the management team, besides upgrading technology and infrastructure. Siva joined the company in October 2017 and it was expected that he would bring some positive changes to put Gokaldas Exports back on the winning track. Meanwhile, there was a strike by employees of Gokaldas Exports Limited (Atlantic Apparels), Mysore demanding a hike in wages and regular social benefits. According to reports, nearly 1,000 employees of the company were on strike and they agitated in front of the factory gate at Belavadi Industrial area. The workers claimed that the management had offered a rise of Rs. 12 per day in basic wages as against a demand of Rs. 50. It was also said that some of the workers who resigned, were not paid the final settlement amount. They also complained about unreasonable targets, no incentives and bad treatment by supervisors etc.
Apparel Online approached the company for its comment on this issue, but did not receive any reply.
Gokaldas Exports Limited is one of India’s leading export companies, working with top brands and retailers like Walmart, GAP, Adidas, Diesel and many more. During the third quarter of FY 2017-18, the company posted revenue from operations of
Rs. 237.5 cr., which is a 19% Y-o-Y growth. During the same period, it declared net loss of Rs. 16.1 cr. against net loss of Rs. 21.3 cr. in third quarter of FY 2017.
Striking workers protesting outside the factory