Gokak Textiles Delays Marihal Plant Sale
Gokak Textiles Ltd has further postponed the completion of the sale of its knitwear manufacturing plant located at Marihal village near Belagavi, Karnataka, by another three months due to procedural delays, according to a regulatory filing made under Regulation 30 of SEBI (LODR) Regulations.
The transaction, originally expected to conclude in January 2026, relates to the divestment of the company’s knitwear unit situated at Bagalkot Road, Village Marihal, District Belagavi. The company had earlier disclosed the proposed sale in filings dated September 9, 2025 and January 27, 2026.
The Marihal unit was initially established to cater exclusively to export markets. Over the years, the facility also supplied products to the domestic market through third-party outlets as well as the company’s own brands. However, the overall performance of the knitwear business has weakened steadily in recent years.
As part of earlier restructuring measures, specialized garmenting machinery including fabric dyeing, knitting and other processing equipment had already been shifted to the company’s Mills Division at Gokak Falls during FY2015-16. Currently, only cutting and stitching operations continue at the Marihal facility.
The Board of Directors had earlier approved plans to identify a buyer and divest the unit. According to the company, the valuation of the plant comprising land, buildings and machinery stood at Rs 21.49 crore as of May 15, 2025, while the agreed transaction value has been finalized at Rs 19.50 crore.
For FY2024-25, the knitwear division reported turnover of Rs 505.47 lakh, contributing 5.17 per cent of the company’s total revenue from operations. However, the unit reported a negative net worth of Rs 4,115.21 lakh as of March 31, 2025.
