Gokaldas Exports sells its real estate

Garments maker Gokaldas Exports has put many of its properties on the block. Controlled by the private equity giant Blackstone, Gokaldas has decided to sell its buildings, land and other assets which are related to its properties in Bangalore, Mysore and Hyderabad. These properties are related to Balaji Fashion House and Global Garments Unit-III in Bangalore, two plots in Mysore and one plot in Hyderabad.

The first selling of property took place last year in April when it announced the sale of its factory in Bangalore to apparel firm Raymond. This particular unit was not functioning at all and had zero revenue in the year ending March 31, 2014. Gokaldas has about two dozen factories where it employs nearly 26,000 employees. It can produce and export about 2.5 million garments every month.

Last few years Gokaldas has been struggling to increase its revenues and profits. In 2014-15, it posted revenue of Rs 1,070.12 crores as compared to 2010-11 when it had a turnover of Rs 1,142.41 crores. Blackstone acquired a controlling stake in the firm in 2007 for Rs 485.2 crores and later raised its holding through an open offer. Presently, it holds little less than 58 per cent stake in Gokaldas.