Gokaldas Exports announces strategic partnership with BRFL Textiles Private Limited

Apparel manufacturing and export business Gokaldas Exports has agreed to invest in fabric manufacturer BRFL Textiles Private Limited by subscribing through Optionally Convertible Debentures. Gokaldas Exports will subscribe for Rs 50 crore in OCDs then later subscribe to the remaining OCDs up to Rs 300 crore in multiple tranches.

BTPL will mainly use the funding to meet its working capital needs with a smaller portion put towards capex requirements, Gokaldas Exports announced in a press release. The businesses will also explore the possibility of a merger or acquisition by June 30, 2025, which would be subject to required regulatory and statutory approvals.
 
“In the present business environment, customers require speed, flexibility, and agility and prefer to associate with suppliers who operate with an end-to-end integrated business model,” announced Gokaldas Exports in a press release. “With the strategic investment in BTPL, we intend to stand largely self-reliant in fulfilling our raw material requirements for manufacturing. BTPL comes with excellent infrastructure in terms of machinery and configurations, world-class machinery, and specialisation in linen manufacturing.”
 
BTPL is known for its fabric processing and also creates specialised prints as well as yarn-dyed fabrics. The business’ infrastructure supports the production of wovens, knits, and many fibre types.
 
“We believe that investment in BTPL would accelerate GEX’s growth, leveraging the unique capabilities of BTPL,” announced Gokaldas Exports. “At this point, investment in a fabric processing mill would play an important strategic step for the company.”