The Hindu Business Line : Gokaldas Exports draws up roadmap for expansion

Garment exporter Gokaldas Exports has drawn up an aggressive roadmap for expansion this fiscal, which includes setting up new factories, increasing clientele and ramping up product portfolio. It is also looking to supply garments to the domestic market.

Three new factories will come up in Chennai, Mysore and Hyderabad at a total investment of around Rs 40 crore. "This is to reduce the labour acquisition pressure in Bangalore, which is facing a tight labour situation," said Mr Dinesh J. Hinduja, Executive Director - Marketing, Gokaldas Exports.

The Chennai plant, at an investment of Rs 18-20 crore, will come up at the Madras Export Processing Zone and will employ nearly 1,500 people, while the Mysore plant at an investment of Rs 5 crore will employ 1,000 people. Manufacturing at these plants is expected to start in September and October respectively. The factory in Hyderabad entails an initial investment of Rs 12-15 crore and will house around 1,500 employees. Production will begin in 2007.

The company currently has 46 factories at 39 locations in Bangalore, employing 44,000 people.

Also on the cards is setting up an SEZ in Bangalore for apparel and textiles makers. "It will house 50-60 companies and take in an investment of Rs 1,500 crore," said Mr Hinduja. Gokaldas Exports will invest Rs 250 crore in the SEZ. "Land is being acquired ... work will start in December," said Mr Hinduja.

The company, which exports men's, women's and children's wear, is planning to add new categories to its product range — namely trousers, suits, nightwear and lingerie. It will also strengthen its technical clothing offerings.

For manufacture of suits and trousers, Gokaldas Exports is setting up two exclusive plants in Bangalore and production is expected to begin in October. The suit plant will involve an investment of Rs 18-20 crore, with an initial manufacturing capacity of 500 suits per day, which will be scaled up to 3,000 suits "in due course." A trouser factory at an investment of Rs 5 crore, with a capacity to produce 75,000 trousers per month, is also coming up.

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