Textile, Trending in the Economy

Gokaldas Exports Ltd – From Loss Making to Global Leader

Gokaldas Exports is India's largest apparel exporter, with over 40 years of experience in the industry.

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(A) About

Gokaldas Exports - logo

Gokaldas Exports is one of India’s leading apparel exporters with an annual capacity of 36 million+ pieces. Which focuses on manufacturing complex garmenting products that insulate it from other price-based competition. 

It is also engaged in the business of design, manufacture, and sale of a wide range of garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers.

(B) Journey

After the partition in 1947 Jhamandas Hinduja and his 2 brother move their trading business to India. Further in 1979 the business was split among the three brother, with Jhamandas Hinduja taking the lead of Gokaldas Exports.

However, between 2007-09, they sold a 68% stake to Blackstone PE firm. Meanwhile, in FY17-18, one of the directors of Blackstone PE Mr Mathew Cyriac bought a controlling stake from Blackstone under the name Clear Wealth Consultancy Ltd and also changed the leadership of the company and appointed Mr Sivaramakrisna Ganpathy as MD & Vice Chairman.

(C) Industry Landscape

Shifting Market Share

Geopolitical tensions and also with rising labour cost are propelling a potential shift away from China as the dominant player in textile apparel exports.

Diversification Strategies of Major Brands

Recognizing the need to mitigate risk and also reduce dependence on the single market, major brands are actively diversifying their sourcing strategies and decreasing their reliance on China.

Consolidation of Supplier Base and Emphasis on Sustainability

Leading apparel brands are increasingly consolidating their supply chain, and are also prioritising collaboration with a select number of vertically integrated suppliers.

(D) Board Members

Gokaldas Exports - Board Members

(E) Shareholding Pattern

Gokaldas Exports - Shareholding Pattern
Gokaldas Exports - Shareholding

(F) Value Chain

Gokaldas Exports - Value Chain

(G) Serving Marquee Global Brands

Gokaldas Exports - Clients

The company has a long standing relationship with its customers and suppliers with 50% revenue contribution from >10+ years old clients, ~38% from 5+ years old clients and ~12% from <5years old clients.

(H) Revenue Segment

(I) Cost Structure

Gokaldas Exports - Cost Structure

(J) Financials

Gokaldas Exports - Financials

Company has grown its revenue at 7.79% in past 10 years, while PAT grew at a CAGR of 21.21%. Moreover, company’s has turnaround and become profitable where its Profit margins improve from -0.62% in FY14 to 7.79% in FY23.

Gokaldas Exports - Du Pont Analysis

Company sales to total assets remains constant over the past 10 years. While its assets to equity decreased from 5.1 to 1.5 in the past 10 years.

(K) Management Discussion & Concall Highlights


In H2FY22 company has setup 2 units in Karnataka which has a potential annual revenue of Rs 160 Cr and also in Tamil Nadu with a potential revenue of 70 Cr.

Company is further doing a capex of Rs 350Cr+ till FY25E which will have the potential to generate incremental revenues worth ~Rs 1300 Cr.

Atraco Acquisition

In Aug 2023, company has also done a $55 Mn acquisition of Atraco Group (a leading manufacturer of apparel with a strong market position and customer relationship across US and Europe).

Moreover the group has a revenue of $107 Mn and a PAT of $7.2 Mn in CY22. Meanwhile the transaction is done by the mix of debt and internal accruals, which is expected to be closed by Q3FY24. Meanwhile Financing of acquisition is done through $40 Mn of debt and rest through internal accruals.

Concall Highlights

  • Global retail offtake has been slow in which apparel import data shows a YoY decline for the H1. Weak retail demand in autumn and winter due to inflationary trend, high interest rates and a mild winter.
  • Company further anticipate the demand to be sluggish for H1FY24 with momentum picking up in H2FY24.
  • India is also negotiating FTA with Canada, UK & EU, all of these has the potential to open up large market for preferential trade.
  • Company new manufacturing unit in MP started commercial production and is also expect the production to ramp up in the next 9 months.
  • Further company manufactures autumn wear in Q1, winter wear in Q2 and in Q3 & Q4 they do spring & summer wear.


Retail apparel sales in the US is also expected to witness good traction starting from H2 FY24. However, the demand has faced challenges due to high inflation resulting from the unresolved war conflict between Russia & Ukraine.

Brands on the other hand, continue to liquidate their high inventory holdings and are planning to moderate their purchase plans to align with market demand conditions which may continue in the next 2 quarter.

(L) Strengths & Weaknesses


(i) Established market position and a long track record in the apparel industry

Gokaldas Exports enjoys established relationships with reputed global apparel retailers in the markets of North America and Europe, coupled with recurring orders received and a steady increase in wallet share with key customers.

(ii) Well established customer base along with geographical diversification in revenues

Gokaldas Exports also has long-standing relationships with its customers and suppliers. Meanwhile its customers include some of the reputed global apparel retailers in the markets of North America and Europe. 


(i) Presence in a highly fragmented industry

The industry is also highly fragmented and competitive, with large number of unorganized players in the market. Moreover such high fragmentation limits the pricing flexibility and bargaining power of the players. Also, the threat from large integrated players in the form of capacity additions limits the growth.

(ii) Vulnerability of operating margin to fluctuations in forex rates

Since majority of revenue comes from the international market, any sharp fluctuation in forex rates affects realizations and accrual.  This exposes the operating margin to fluctuations in forex rates.

Drop us your query at – info@pawealth.in or Visit pawealth.in

References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry Publications.

Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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