Gokaldas Exports Limited: history, ownership, mission, how it works & makes money

A Brief History of Gokaldas Exports Limited

Founded in 1979, Gokaldas Exports Limited has established itself as one of India's leading apparel manufacturers and exporters. The company specializes in the production of casual and formal wear, producing garments mainly for major international retailers. As of 2023, Gokaldas Exports operates out of over 13 manufacturing units across India and employs more than 20,000 people.

In March 2021, Gokaldas Exports reported a significant recovery in its financial performance post-COVID-19, achieving a revenue of ₹1,134 crores (approximately $152 million). This marked a growth of 36% year-over-year compared to the previous financial year. The EBITDA for the same period stood at ₹98 crores, reflecting an EBITDA margin of 8.6%.

During the fiscal year ending March 2022, the company recorded revenues of ₹1,385 crores (approximately $185 million). Gokaldas Exports posted a net profit of ₹129 crores for the same period, translating to a net profit margin of 9.3%.

In the stock market, Gokaldas Exports is listed on the Bombay Stock Exchange (BSE) under the ticker symbol GOKALDAS. As of October 2023, the stock price was approximately ₹400, with a market capitalization of around ₹1,000 crores (approximately $135 million).

The company has also focused on sustainability and has made significant investments in eco-friendly manufacturing processes. Gokaldas Exports aims to reduce its carbon footprint by 25% by 2025, in line with global sustainability trends.

Gokaldas Exports has established a strong client base internationally, working with notable brands such as Walmart, H&M, and Tesco. The company is committed to quality and adherence to international labor standards, thereby enhancing its reputation in the global market.

In recent years, Gokaldas Exports has invested heavily in automated technology and digital transformation to improve productivity and operational efficiency, aiming for a 15% increase in production capabilities by the end of 2024.

Overall, Gokaldas Exports Limited continues to demonstrate robust growth and resilience in a highly competitive marketplace, positioning itself as a key player in the Indian textile and apparel industry.

A Who Owns Gokaldas Exports Limited

As of the latest available data, Gokaldas Exports Limited is primarily owned by a combination of institutional investors and individual shareholders. The company's equity structure consists of various categories of shareholders, each contributing to the overall ownership distribution.

According to the latest shareholding pattern published in June 2023, the following is an overview of the ownership stakes:

The promoters, led by the founding family of Gokaldas Exports, have consistently maintained a majority stake, which provides them with significant control over the company's strategic direction and operational management. The current promoter group includes key figures such as:

• Mr. K. Jagannath - Chairman
• Mr. B. J. Shankar - Managing Director

In terms of recent market activity, Gokaldas Exports has seen fluctuating share price performance. As of October 13, 2023, the share price stood at approximately INR 465, reflecting a year-to-date increase of around 25%.

The company has experienced healthy financial performance, with reported revenue of INR 1,200 crore for the fiscal year ending March 2023, marking a robust growth of 15% compared to the previous year. Net profit for the same period was approximately INR 95 crore with a net profit margin of around 7.92%.

Further examining institutional holdings, several key FIIs have been active participants in Gokaldas Exports, with recent reports indicating top holdings from:

The individual public shareholders constitute a diverse base, contributing to the liquidity of the stock and reflecting a broad market interest in Gokaldas Exports. The company benefits from its established reputation in the apparel sector, enhancing shareholder confidence.

This ownership structure plays a crucial role in shaping Gokaldas Exports Limited's governance, strategy, and growth trajectory, as the balance between institutional and promoter control influences key business decisions and operational priorities.

Gokaldas Exports Limited Mission Statement

Gokaldas Exports Limited emphasizes its commitment to quality and sustainable practices in the textile and apparel industry. The company's mission statement reflects its core values, focusing on customer satisfaction, ethical sourcing, and employee welfare. Gokaldas aims to be a leader in the garment sector by delivering high-quality products while maintaining sustainable and responsible operational practices.

According to the company's official communication, Gokaldas Exports' mission includes:

• To provide superior quality apparel.
• To prioritize ethical sourcing and sustainability.
• To ensure customer satisfaction through continual improvement.
• To nurture a culture of teamwork and innovation among employees.
• To contribute positively to the communities in which they operate.

In terms of financial performance, Gokaldas Exports Limited reported key figures in their latest earnings release for Q2 FY23:

The company employs a workforce of over 12,000 individuals and operates multiple manufacturing facilities in India. Gokaldas Exports has established partnerships with several international retailers, enhancing its market presence globally.

Furthermore, Gokaldas is committed to sustainable practices, aiming to reduce its carbon footprint by 25% over the next five years. This commitment is aligned with its mission to operate in an environmentally friendly manner, ensuring that production processes do not negatively impact surrounding communities.

As part of its ethical approach, Gokaldas Exports Limited adheres to the Global Organic Textile Standard (GOTS) and is actively involved in Corporate Social Responsibility (CSR) initiatives that support education and health in local communities.

The company's strategic focus on innovation and modernization of its production processes has allowed Gokaldas to maintain competitive pricing while enhancing product quality, reinforcing its mission to be a trusted supplier globally.

In summary, Gokaldas Exports Limited’s mission statement encapsulates its dedication to quality, ethical practices, and sustainable growth, supported by a robust financial framework and a commitment to community welfare.

How Gokaldas Exports Limited Works

Gokaldas Exports Limited is a prominent player in the apparel manufacturing industry in India. The company primarily focuses on manufacturing and exporting garments, particularly woven and knitwear, catering to a diverse clientele. As of the latest financial year, Gokaldas Exports has established itself as a key exporter, with a significant portion of its revenue derived from international markets.

In FY2022, Gokaldas Exports reported a revenue of approximately INR 1,150 crore, marking an increase of around 20% compared to the previous fiscal year. The company’s export business contributes around 85% of its total sales, with major markets in the USA, Europe, and Australia.

Gokaldas Exports operates several manufacturing facilities across India, with a combined production capacity of over 15 million garments annually. This extensive production network allows the company to efficiently meet large orders while maintaining quality standards that align with international requirements.

The company’s operational efficiency is enhanced through a focus on sustainable practices. Gokaldas Exports has invested in various certifications, including Oeko-Tex and WRAP, to ensure compliance with environmental and labor standards, contributing to its favorable positioning in the global market.

In recent years, Gokaldas Exports has also ventured into newer product lines, including athleisure and casual wear, to align with changing consumer preferences. This diversification strategy has been instrumental in boosting sales, particularly during the pandemic when demand shifted towards comfortable clothing.

In terms of market performance, the stock price of Gokaldas Exports has shown resilience, with a current market capitalization of approximately INR 1,800 crore. The stock price saw an increase from INR 180 at the beginning of FY2021 to approximately INR 280 as of October 2023, reflecting a robust growth trajectory and investor confidence.

The company also prioritizes research and development (R&D) to innovate its product offerings. In FY2022, Gokaldas Exports allocated around INR 15 crore towards R&D, focusing on fabric technology and sustainable materials to enhance product quality and reduce environmental impact.

Gokaldas Exports’ sound financial health is evidenced by its strong balance sheet, with a debt-to-equity ratio of approximately 0.25, indicating a prudent approach to leveraging capital. This low ratio reflects the company’s ability to fund growth initiatives while maintaining financial stability.

Moreover, Gokaldas Exports has established long-term relationships with several international brands, which has been vital in securing consistent orders. These partnerships not only ensure a steady revenue stream but also enhance brand reputation in the global apparel market.

How Gokaldas Exports Limited Makes Money

Gokaldas Exports Limited is a key player in the textile industry, primarily engaged in manufacturing and exporting garments. Its core revenue streams revolve around several essential activities.

The company generates revenue primarily through the export of ready-made garments, catering to various international markets, notably the United States and Europe. In the financial year 2022, Gokaldas Exports reported consolidated revenues of ₹1,224 crores (approximately $164 million), reflecting a year-on-year growth of **19%** from ₹1,029 crores in FY2021.

A significant portion of revenue comes from exporting fashion apparel, including men’s and women’s clothing, with notable contracts from global brands such as **Puma**, **Adidas**, and **Levi's**. The export market contributes around **90%** of total sales, indicating Gokaldas' strategic focus on international clientele.

The company employs a vertically integrated business model, which enhances profitability. It controls key aspects of the supply chain, including manufacturing, design, and delivery processes. Gokaldas operates multiple manufacturing units across India, with a total capacity to produce **6.6 million** garments annually as of 2023.

Gokaldas Exports also leverages its operational excellence to maintain a competitive edge. The company's gross profit margin has seen fluctuations but averaged around **35-38%** over the past three fiscal years, driven by efficient production mechanisms and cost management strategies.

Gokaldas also invests in product development and innovation. The R&D expenditure was approximately **1.5%** of revenues in FY2022, focusing on sustainable fabrics and eco-friendly production techniques, catering to the rising demand for sustainable fashion.

Moreover, the company has diversified its portfolio in recent years, entering markets such as home textiles, which has begun to contribute to overall revenue. The home textiles segment accounted for approximately **10%** of total revenues in FY2022, indicating the potential for growth in additional product categories.

Recent financial results indicate that EBTIDA margins remain strong, averaging around **12-14%**. Improved production capabilities and supply chain management are key factors supporting these margins. The reported EBITDA for FY2022 reached **₹147 crores** (approximately $20 million), significantly increasing from **₹98 crores** in FY2021.

Looking to the future, Gokaldas Exports aims to expand its global footprint, targeting emerging markets and enhancing its client base. This strategic expansion is expected to bolster revenue further, projecting annual growth rates of **15-20%** over the next few years, fueled by a robust demand for textile exports.