Gokaldas Exports Ltd. (GEL) has entered into a Memorandum of Understanding with Karnataka Government on February 18, 2019, for setting up apparel manufacturing units over a period of next 5 years in Bellary district involving an investment of up to Rs. 80 crores which is likely to generate approximately 4,000 new jobs. The said investment is however subject to such terms and conditions as requested and sought by GEL including appropriate infrastructural support and relevant incentives and subsides being made available to GEL with the Karnataka Government.
GEL is focusing on cost-effective capacity expansion through operational de-bottlenecking, selective investments that enhance capacity and efficiency, realigning the manufacturing footprint by increasing output from lower cost Tier 2 and 3 geographies to unlock additional productivity and margins. Incremental brownfield expansion and investment in modernization could help deliver additional growth at incrementally higher margins.
GEL has re-positioned itself as a global player ensuring that its products include a diverse mix of apparels that caters to international as well as domestic markets. The company is focusing on a four-pronged strategy: Strengthen customer relationship to drive business volumes, drive operational excellence, scale capacity in a cost-effective manner and upgrade its business infrastructure.
GEL is also modernising its manufacturing infrastructure to ensure qualitative excellence on the one hand and reduce dependence on skilled manpower availability on the other. The company has invested in clutch/servo motor-controlled machines with direct drive technology, multi-function embroidery machines, installed Yilmak and Tonello machines for washing and dyeing which helps in achieving a liquor ratio of 1:5 to reduce chemicals consumption, installed automated laser machines. All these initiatives are expected to enhance energy efficiency, reduced dependency on manpower and a more sustainable manufacturing practice.
