Gokaldas Exports considers acquisition of BRFL Textile to strengthen fabric sourcing

Gokaldas Exports is evaluating the possibility of acquiring BRFL Textiles, a fabric and processing unit, in which it made an investment in July 2023. Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports, told that the company will take a call on a full acquisition sometime this financial year. The move aligns with Gokaldas’ long-term strategy of vertical integration, aimed at ensuring greater control over fabric sourcing, accelerating growth and shortening lead times. “Not all fabrics and trims can be produced in-house, but they constitute a reasonably large part of our supply chain. Having some degree of control over it helps us serve our customers better,” Ganapathi explained. “That’s the reason we’ve gone down this path. ”The company has also been focusing on diversifying its sourcing and supply chain. “We now have units in Madhya Pradesh and Ranch both low-cost locations. The idea is to tap into the local labour pools in those areas, unlike in the South or in Gurugram, where we face challenges in labour availability.” “In our southern factories, we tend to hit a saturation point with labour, which is why we are going where the labour is, rather than importing it,” he added. Gokaldas has been expanding facilities to increase capacity. Ganapathi said the company will set up one more factory in Bhopal, another in rural Karnataka (outside Bengaluru) and a third in Ranchi, Jharkhand. “We are not shying away from adding capacity. These new factories will be ready by early Q3, and that’s when we’ll start ramping up manpower. The physical infrastructure will be completed by then,” he said. The company posted a 19 per cent year-on-year (y-o-y) increase in consolidated profit after tax to ₹53 crore in the fourth quarter of FY25, compared to ₹44 crore in the corresponding quarter of the previous fiscal.