July 13, 2024

Gokaldas Exports Announces Strategic Investment In BRFL Textiles

Gokaldas Exports has announced a strategic investment in BRFL Textiles Pvt. Ltd. (BTPL), one of India’s largest fabric processing companies. Gokaldas Exports will invest in BTPL through Optionally Convertible Debentures (OCDs). In the first tranche, Gokaldas Exports will subscribe for ₹50 crores, with additional OCDs worth up to ₹300 crores to be subscribed in multiple tranches based on funding requirements. These funds will primarily meet working capital needs, with a smaller portion allocated for capital expenditures. Subject to certain conditions and the receipt of applicable regulatory, statutory, or other required approvals, a possible merger or acquisition will be explored by 30th June 2025.

In today’s business environment, customers demand speed, flexibility, and agility and prefer suppliers with an end-to-end integrated business model. With this strategic investment in BTPL, Gokaldas Exports aims to become largely self-reliant in fulfilling its raw material requirements for manufacturing. BTPL boasts excellent infrastructure, including world-class machinery and configurations, and specializes in linen manufacturing. It is well-known in the fabric processing segment, particularly for its specialized prints and yarn-dyed fabrics, which align with Gokaldas Exports’s internal needs. The infrastructure supports the production of knits, wovens, and all fiber types.

Gokaldas Exports believes that investing in BTPL will accelerate its growth by leveraging BTPL’s unique capabilities. This strategic investment in a fabric processing mill marks an important step for the company.

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