Gokaldas Exports Ltd

AS WE REFLECT ON FY24, I AM FILLED WITH A SENSE OF PRIDE AND OPTIMISM FOR GOKALDAS EXPORTS LIMITED. IN A YEAR MARKED BY GLOBAL ECONOMIC CHALLENGES AND INDUSTRY-WIDE TRANSFORMATIONS, OUR COMPANY HAS NOT ONLY WEATHERED THE STORM BUT HAS EMERGED STRONGER, MORE AGILE, AND WELL-POSITIONED FOR FUTURE GROWTH. AS THE CHAIRMAN, I AM EXCITED TO SHARE WITH YOU THE STRIDES WE HAVE MADE AND THE OPPORTUNITIES THAT LIE AHEAD FOR OUR ORGANISATION.

The global apparel industry is undergoing significant transformations, driven by shifting consumer preferences, technological advancements, and geopolitical factors. The ongoing trend of diversification away from China as a primary sourcing hub has opened new avenues for countries like India to expand their market share. This ‘China Plus One? strategy adopted by major brands is reshaping the global supply chain, presenting a unique opportunity for Indian manufacturers.

Sustainability has emerged as a critical focus area for the industry. Consumers, particularly in developed markets, are increasingly demanding environmentally responsible and ethically produced garments. This shift is compelling brands to reassess their supply chains and partner with manufacturers who can meet these evolving standards.

The potential implementation of Free Trade

Agreements (FTAs) with key markets like the UK and EU presents exciting prospects for increased textile trade. Additionally, government initiatives such as the Production Linked Incentive (PLI) scheme for the Man-Made Fibre (MMF) and technical textile ecosystem are expected to boost investments in the sector.

In this dynamic environment, Gokaldas Exports is well-positioned to capitalise on these industry trends. Our strategic focus on women?s fashion, outerwear, and sportswear aligns with growing market segments. We anticipate organic growth of approximately 15% over the next two to three years, driven by our strong customer relationships and expanding production capabilities. Furthermore, our recent acquisitions of Atraco and Matrix Design have significantly enhanced our global footprint and product offerings. These strategic moves have provided access to new markets, expanded our customer base, and strengthened our position in key product categories. The integration of these entities is progressing well, and we expect to realise synergies in the coming years.

We continue to invest in our organic growth through strategic capacity expansions. Our new manufacturing unit in Bhopal, Madhya Pradesh, is ramping up well and is expected to reach full capacity utilisation soon. Additionally, our fabric processing unit in Tamil Nadu will enhance our vertical integration capabilities, allowing us to offer a more comprehensive range of services to our customers. These investments, coupled with our focus on operational excellence and cost optimisation, will enable us to meet the growing demand from our global customer base efficiently.

A CORE FOCUS

At Gokaldas Exports, we recognise that sustainable business practices are not just a responsibility but a competitive advantage. We have set ambitious goals to achieve net-zero emissions, water positivity, and zero solid waste in landfills. Our efforts include implementing energy-efficient systems, reducing water consumption, and minimising waste generation across our manufacturing units. We are proud to report significant progress in our sustainability initiatives, including a 20% decrease in water usage across our facilities. Our comprehensive waste management system has resulted in 80% of our waste being recycled or repurposed.

Moreover, as a significant employer, particularly of women, we contribute to social upliftment and economic development in the communities where we operate. Our workforce of about 51,000 people, with a large proportion being women, reflects our commitment to creating equitable employment opportunities and fostering a diverse and inclusive work environment.

Gokaldas Exports? strength lies in its robust in-house capabilities, encompassing skilled labour and state-of-the-art manufacturing facilities. Our integrated manufacturing facilities enable us to be present across the entire value chain, facilitating our ability to cater to myriad requirements of our customers. Our design and product development capabilities, coupled with our ability to handle complex styles and small batch sizes, set us apart in the industry. We have invested in advanced technologies, including 3D design capabilities and modern printing setups, to enhance our product offerings and improve efficiency.

As we move forward, I am optimistic about the future of Gokaldas Exports. The inventory destocking cycle in major markets is nearing its end, with many fashion brands showing reduced inventory levels, improved financial performance, and a renewed appetite for purchases. We expect this trend to translate into stronger demand for our products in the coming quarters. Our focus remains on driving operational excellence, realising synergies from our acquisitions, and capitalising on growth opportunities. We are committed to enhancing shareholder value through sustainable growth, margin improvement, and prudent capital allocation. In conclusion, I would like to express my heartfelt gratitude to our employees, customers, suppliers, and shareholders for their unwavering support. Your trust and confidence in Gokaldas Exports continue to be our greatest strength as we navigate challenges and seize opportunities in our journey towards becoming a global leader in the apparel manufacturing industry.

As we look ahead, our commitment to sustainable growth, operational excellence, and value creation for all our stakeholders remains unwavering. Together, we will continue to build resilience, explore new opportunities, and embrace sustainable growth in the years to come.

THANK YOU FOR YOUR CONFIDENCE AND FAITH IN GOKALDAS EXPORTS LIMITED.

Mathew Cyriac

CHAIRMAN AND NON-EXECUTIVE DIRECTOR