A garment manufacturer and exporter, Gokaldas Exports has signed a definitive agreement to acquire the apparel business of Matrix Clothing for Rs 489 crore. This strategic move strengthens Gokaldas' position in the knitwear segment besides introducing new customers, and expanding its geographic reach to Europe.
Known for its high-quality knitwear for men, women, and children, Matrix Clothing caters to renowned brands and operates five manufacturing facilities in India. Its strong performance and established customer base align well with Gokaldas' growth aspirations.
The acquisition creates a more comprehensive offering for Gokuldas Exports as the company benefits from Matrix’s expertise in knitwear. Matrix's established customer relationships in Europe also broaden Gokaldas' reach beyond its traditional markets. Its strengthens Gokuldas Exports’ operations in Europe.
Despite an industry-wide decline in apparel exports, Gokaldas demonstrated resilience in Q3FY24. Outperforming the industry, the company’s revenues grew by 6 per cent Y-o-Y. It’s profit after tax declined by 25 per cent Y-o-Y. The company maintained healthy margins, reflecting efficient operations and cost control.
In 2024, Gokuldas Exports expects a positive momentum driven by improving supply chain trends and normalised ordering patterns. The company expects sequential growth is anticipated in the coming quarters, fueled by the Matrix acquisition and other growth initiatives.
The acquisition of Matrix Clothing marks a significant step for Gokaldas Exports. By expanding its product portfolio, diversifying its customer base, and strengthening its geographic presence, the company is well-positioned for sustainable growth in the years to come.
