Gokaldas Ex­ports

to dou­ble capacity; raises Rs. 70 cr. from mar­ket

Apparel Online - - Industry Wire -

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

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