Bengaluru-based apparel company Gokaldas Exports aims to expand its footprint in the UK and EU while maintaining key businesses in the US, buoyed by its highest-ever overall income for FY25.
Speaking to FE, Gokaldas Exports’ Vice Chairman and Managing Director, Siva Ganapathi shared the company’s expansion plans for the coming fiscal while discussing industry trends. “Currently the UK market constitutes 5% of our overall revenue. While it would take about a year for the India-UK free trade agreement (FTA) to take flight, we could double that figure. Additionally, the EU is a market we hope to expand in, which contributes 7% to our revenue. With talks for an India-EU FTA in the pipeline, our revenue to the EU could triple in the coming few years,” he said.
It may be mentioned that the company’s biggest market is in the US, which contributes 70% to its overall revenue. Despite US President Donald Trump’s reciprocal tariff threats, Ganapathi said that the company will adopt a wait-and-watch approach. “Barring China, the tariffs have resulted in a level playing field for all countries. While our summer and Q2 FY26 exports have already been carried out at pre-tariff prices, we are yet to see the impact on fall and winter sales if higher tariffs are passed as newer orders will begin coming in then,” he noted. As retailer costs have already risen by 10%, Ganapathy added that while brands are seeking to absorb the price shock, the consumers will eventually face the brunt of inflated prices.
Despite the lack of clarity, Ganapathi affirmed that Gokaldas Exports will continue focusing on the US market while expanding into newer markets. Although the company has international clients that sell apparel in India, it does not directly sell within the domestic market. “We do not plan to expand into the Indian market as of yet, the global markets remain our priorities,” he stated.
In June 2024, the company invested Rs 280 crore in a mill belonging to BRFL Textiles, acquiring an approximate 11.38% stake. This is likely to convert into a complete acquisition with ongoing discussions.
Additionally, the apparel exporter is establishing new factories in central India instead of key textile hubs such as Tamil Nadu and Tripura. “To establish factories in prominent textile regions means higher costs. The factories we are setting up in central India would not only increase the incremental EBITDA by 2-3% but also give easier access to affordable labour,” Ganapathi explained.
With the company’s direct exports and the acquisition of Atraco Group and Matrix Clothing Private Limited (MCPL) in 2023 and 2024 respectively, Ganapathi concluded that Gokaldas Exports has sufficiently covered the various verticals within the textile sector and achieved organic growth, with plans to remain on a similar course.