Apparel manufacturer Gokaldas Exports plans to expand its capacities in existing units to support further growth. According to Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, the manufacturer is noticing strong tailwinds for business in India and Africa, prompting them to expand capacity across their operations.

Ganapathi confirmed that facilities are running at full capacity, describing the situation as “capacity-starved,” with demand equivalent to the output of an additional 1.5 factories. “We are looking at expanding our capacities across the system,” he stated.

This includes adding capacity at existing units and in southern India for quick expansion, he shared during the investor conference call. “Besides Bhopal and South India, we may also consider additional capacity in Ranchi, Jharkhand. Our order book remains strong, indicating robust near-term prospects, with a favourable long-term outlook driven by the ongoing shift in global sourcing away from China and Bangladesh,” he added.

The company has achieved volume growth of 14.95 million units at a consolidated level, with a realisation of ₹580 per unit, according to A Sathyamurthy, Chief Financial Officer, Gokaldas Exports.

He also noted that ₹100 crore has been allocated for capital expenditure this year, with nearly ₹55 crore already spent. The remaining ₹45 crore will be invested to further increase capacity, with most of these additions expected to yield results in the next financial year.

Additionally, capacity utilisation at Atraco and Matrix is set to rise in Q3, supported by a strong order book for both entities. “At Atraco, we are planning to expand capacity by adding another 500 machines,” he said.

The company reported a rise in consolidated net profit by 19 per cent in the quarter that ended on 30 September, to ₹28.2 crore, from ₹23.7 crore in Q2FY24, with the majority of the growth during the quarter contributed by Gokaldas Exports excluding Atraco & Matrix. In the first half of the year, Gokaldas generated about ₹171.5 crore in cash from operations.

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