Apparel Online India Magazine June 1st Issue 2018 | Page 42

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Gokaldas Exports to double capacity; raises Rs. 70 cr. from market
B
angalore-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.
Striking workers protesting outside the factory
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. 
Fund crunch; exporters in vicious circle
E
ncircled by many problems,
non-availability of funds is a
growing challenge for most of the
exporters. And one of the main
reasons for the same is non-
clearance of GST refund. As a
breathing space, exporters across
the country started receiving
RoSL refunds, but this is not
proving to be a big support for
them. In discussion with Apparel
Online, exporters shared that
all available sources of funds
are squeezed completely. Bank
limits have already been utilised,
private money lenders also don’t
have enough liquidity after
demonetization and now when they
do have some amount with them,
they are not willing to give loan to
apparel exporters as they know
their conditions.
One exporter informed that he
was forced to sell his personal
property to run the factory.
Exporters share that they cannot
stop or shut their business
and also do not want to be in a
situation where their buyer passes
orders to other exporters. So they
are not having any other option,
but to keep the factory running at
all cost. Sadly, there is no solution
at the exporter’s end and the only
way they see any relief is that the
Government should come forward
in support. One Ludhiana-based
exporter who did not want to be
42 Apparel Online India | JUNE 1-15, 2018 | www.apparelresources.com
This year, many
export houses have
seen a negative
impact on their
balance sheet which
will also reflect on
their bank limits. It is
also going to be very
difficult for exporters
to gain future orders.
quoted, shared, “So far we have
received just Rs. 5 lakh under
RoSL while total amount is nearly
Rs. 50 lakh. Orders are already
less; and even out of that we are
doing limited orders just because
of non-availability of funds.” The
situation is more or less the same
for all and the overall experience
of exporters across the country is
on similar lines. More than today,
these exporters are worried about
the future. “Even once if we say
no to labour, they will never come
back again, as majority of labour
is migrant from other states. It will
have negative impact whenever we
get orders in the future,” reasoned
a worried exporter.