Gokaldas Exports to Strengthen Supply Chain with BRFL Textiles Amalgamation

Bengaluru-based Gokaldas Exports (GEX) has received board approval for the amalgamation of BRFL Textiles Pvt Ltd (BTPL), set to enhance its supply chain. The decision, made at a meeting on August 9, was announced on Saturday, marking a significant step towards a vertically integrated business.

The board's approval initiates a draft Scheme of Amalgamation, which aims to integrate the manufacturing capabilities of BTPL with GEX, thereby creating operational and financial efficiencies. This scheme, however, requires regulatory and shareholder approvals before finalization.

Having made strategic investments in BTPL last year and increasing its shareholding to 19%, GEX plans to offer BTPL shareholders either equity in GEX or a combination of cash and shares. The total acquisition will cost Rs 552 crore, benefiting GEX's expansive growth within the garment industry.

(With inputs from agencies.)