Gokaldas in JV talks with international lingerie brand

MUMBAI: The country’s largest manufacturer of readymade fashion garments Gokaldas Exports Limited (GEL) is close to forming a joint venture (JV) with an international lingerie brand.

Highly placed sources said the management was negotiating the JV and an announcement is expected in May-June period next fiscal. The Rs 1,200 crore Bangalore-based is in also in advanced stages of negotiations with Bharti, Reliance Retail, Metro Group, Aditya Group for bulk supply of goods to these retailers. It has started a domestic supply division to cater to the domestic retail boom.

Gokaldas Exports is also looking at exporting industrial work-wear, sleepwear products and technical textiles garments. It is in talks with large branded retailers as a supplier looking to scale up in the domestic market.

When contacted, Rajendra J Hinduja, executive director-finance, Gokaldas Exports Limited told DNA Money, “The negotiations with the international lingerie brand for a joint venture are going on and once it is finalised, the company will inform the exchanges.” On talks with big retailers Hinduja said talks are on.

Gokaldas Exports has started production at Chennai SEZ plant. A plant in Mysore and a bottoms facility near Bangalore are likely to become operational in April 2007, while Hyderabad unit is likely by December. By the end of FY-08, Gokaldas’ annual garment capacity would go up by about 26% to 30 million pieces.