Gokaldas forms new subsidiary to expand business lineGOKEX - 781 Change: 42.25 (5.72 %)
News: The company in its press release has stated formation of a wholly owned subsidiary for the purpose of exploring opportunities in the new line of business and augment production capacity.
Views: GEL has charted out a major capex plan of Rs.340 crore over the next four years. It is currently mainly into woven garments, while its customers are present in both woven and knitted garments. The management had indicated in the previous quarter that it was planning to enter the knitted garments segment. We believe the new subsidiary will be utilised for manufacturing knitted garments which will enable to capture the enhanced demand for the segment. We also expect that the new subsidiary can be utilised for manufacturing specified products eligible for claiming the PLI subsidy.